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TWC overpayment hearing for severance pay - can I win when I reported everything correctly?

I've got an overpayment hearing next week with TWC about my severance package from 2020, and I'm freaking out! They're saying I owe $4000 back, but I honestly did EVERYTHING by the book. My company laid me off and gave me a severance package based on years of service. I called TWC before I even filed to ask about how to handle the severance, and the agent specifically told me to file and report the severance payments when I received them. I reported EVERY SINGLE PAYMENT on my payment requests. I have copies of all my payment request confirmations showing I disclosed the severance. Now, 5 years later, they're saying I wasn't eligible during that period and want all that money back! Didn't the state of Texas pass something saying they couldn't come after people for overpayments when it was their mistake and not fraud? Has anyone won an appeal hearing for something similar? What documentation should I bring? I'm so stressed because I can't afford to pay this back, and I feel like I'm being punished when I followed their instructions!

Yara Sayegh

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I went through something similar last year with a different type of overpayment case and won my appeal. The key is to bring documentation showing you disclosed everything properly. For your hearing make sure you have: 1) Any emails or confirmation numbers from when you called TWC about the severance, 2) Copies of ALL your payment request forms showing you reported the income, 3) The severance agreement showing exactly how it was structured, 4) Any determination letters you've received about this issue. I think you have a strong case if you can prove you followed their guidance and reported everything.

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Thank you so much! I have my severance agreement and all my payment request confirmations. Do you think I should get a statement from my former employer confirming it was severance based on length of service? I'm just worried because the hearing notice says I need to "prove by a preponderance of evidence" that I wasn't overpaid, and I don't know what that really means.

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Keisha Johnson

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THE TWC SYSTEM IS COMPLETELY BROKEN!!!! They told me the EXACT same thing about reporting my severance in 2021, and then came back 8 months later saying I owed $5700!!! I appealed and LOST because they said I "should have known" the rules even though THEIR OWN EMPLOYEE gave me wrong information! Good luck but don't get your hopes up. Those appeal people just rubber stamp whatever TWC says.

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Paolo Longo

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OMG this is making me panic now. I just got laid off and got severance too. Did you have any proof that they told you to file while receiving severance? Like a name or ID number of who you talked to?

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CosmicCowboy

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I won my overpayment appeal for a similar situation, but it was related to vacation payout, not severance. Here's what matters for your case: Texas considers severance pay differently depending on how it's structured. If it was truly a "time served package" (meaning based on years of service), TWC typically treats that as payment for your past work, not as ongoing wages. This is different from "in lieu of notice" payments, which can disqualify you. For your hearing: 1. Bring written documentation showing you disclosed everything 2. Emphasize that you followed TWC's specific instructions 3. Request your TWC call records in advance if possible (they keep records of calls) 4. Reference Texas Workforce Commission Appeal No. 86-05430 (a precedent case about severance) And yes, there was a provision during COVID that protected claimants from overpayments if the mistake was TWC's error, but it had specific qualifications. Bring this up in your hearing and request information about this protection.

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This is incredibly helpful! I didn't know about requesting call records or that case number. My severance agreement specifically states it was calculated based on my 7 years of service (2 weeks per year). It wasn't in lieu of notice at all. Do you think I should bring a witness from my former HR department who could testify to this?

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Amina Diallo

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has any1 used that service that helps u actually get through to twc on the phone? i kept calling about my overpayment issue for 2 WEEKS straight with no luck until my friend told me about claimyr.com - got through in like 20 mins!! they have this video that shows how it works https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh maybe u could call and get more info before ur hearing? might help u know what to bring

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I haven't heard of this before but I'm definitely going to check it out. I've been trying to get actual clarification from TWC for days with no luck. At this point I need all the help I can get before this hearing. Thanks for sharing!

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Oliver Schulz

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my freind had overpayment hearing few months ago. she won bcuz she had emails from twc telling her to file. do u have ANY emails or anything in writing? thats what the judge asked for in her case. if its all just phone calls they might say u dont have proof of what they told u.

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CosmicCowboy

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This is a really important point. If you don't have written confirmation of the guidance you received, focus on your payment request documentation. The law puts the burden on TWC to prove you knowingly received benefits you weren't entitled to. If you can show you consistently reported the severance, that undermines any claim that you were trying to deceive them.

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Yara Sayegh

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I forgot to mention - print out the Texas Workforce Commission Appeals Policy and Precedent Manual section about severance pay. It clearly distinguishes between different types of severance. Specifically look for the sections on "dismissal payments" vs "payments in lieu of notice" - these are treated differently. Bring this to your hearing and reference it directly. You can find it on the TWC website.

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Paolo Longo

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I just looked this up and it's super confusing! Does anyone know if severance for "position elimination" counts as dismissal payment or something else? My company is restructuring and I'm worried about this exact situation happening to me.

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Natasha Orlova

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One thing nobody's mentioned - be EXTREMELY prepared for your hearing! I got flustered during mine and couldn't find documents fast enough when the hearing officer asked for them. They only give you like 30 minutes total. Have everything organized by date, have multiple copies of everything, and write out a simple timeline of events to keep yourself on track. They won't give you extra time if you're shuffling through papers. Also, if it's a phone hearing, email your documents to the hearing officer in advance so they can see what you're referencing.

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That's really good advice! My hearing notice says it's scheduled for 45 minutes. I'll definitely create a timeline and organize everything in advance. Did you have any specific strategy for explaining your case? Did you just answer their questions or did you give an opening statement about what happened?

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Keisha Johnson

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also be aware they WILL record everything you say and try to use it against you! if they ask if you "knew the rules" dont say yes even if you think you did because theyll twist it. my hearing officer was super nice and i thought she was on my side but then ruled against me. its all a trick to get you to admit fault!

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Natasha Orlova

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While I understand your frustration, this advice might not be helpful. The hearing officer isn't trying to trick anyone - they're just gathering facts. It's better to be truthful but precise in your language. Instead of saying "I didn't know the rules," you can say "I followed the guidance provided by the TWC representative I spoke with on [date]." Perceived dishonesty can harm your case more than admitting you relied on their guidance.

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CosmicCowboy

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One more crucial point about your hearing: Make sure you address the exact reason code on your determination letter. Different types of severance issues have different appeal approaches. If they're saying you had "wages" during those weeks, argue that severance based on years of service isn't wages for those weeks but compensation for past work. If they're saying you weren't eligible for some other reason, address that specific reason. The hearing officer can only consider the exact issue stated in your determination letter.

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The determination letter says I "received wages during weeks benefits were paid" and cites section 207.049(1) of the Texas Unemployment Act. It doesn't specifically mention severance, just says I had "remuneration" during those weeks. I'll focus on explaining how my service-based severance doesn't count as wages for those specific weeks.

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Yara Sayegh

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Based on your update about the determination reason, you're in a good position! Section 207.049(1) deals with disqualification for receipt of wages. Texas case law has established that severance based on length of service is NOT considered wages for the weeks paid but rather recognition of past service. Bring a copy of your severance agreement showing the calculation was based on years worked. You should be able to win this if you can demonstrate it was truly a service-based package. Good luck with your hearing!

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Thank you so much! This gives me hope. I'll make sure to highlight the specific language in my severance agreement about it being calculated based on years of service. I really appreciate everyone's advice here - feels like I have a fighting chance now.

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