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!
27 comments


Yara Sayegh
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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Connor Gallagher
•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
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
•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
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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Connor Gallagher
•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
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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Connor Gallagher
•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
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
•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
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
•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
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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Connor Gallagher
•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
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
•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
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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Connor Gallagher
•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
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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Connor Gallagher
•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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Isabella Oliveira
I just went through a similar overpayment hearing last month and actually won! Here's what really made the difference in my case: I brought a detailed timeline showing EXACTLY when I called TWC, what I was told, and how I followed their instructions. Even though I didn't have the agent's name or ID number, I had my phone records showing the date/time of the calls and my payment confirmations showing I reported everything immediately after those calls. The hearing officer said the pattern of disclosure was clear evidence I was acting in good faith. Also, make sure you emphasize that you're seeking relief under the "agency error" provisions - if TWC gave you incorrect guidance, you shouldn't be penalized for following it. Don't let them intimidate you into thinking this is about whether you "should have known better" - it's about whether you acted reasonably based on the information you were given. You've got this!
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Sophia Gabriel
•This is exactly what I needed to hear! I do have my phone records from when I called TWC, and my payment confirmations are timestamped right after those calls. The pattern you mention about acting in good faith is really important - I can show I consistently reported the severance on every single payment request immediately after being told to do so. I'm going to focus on the "agency error" angle you mentioned. Do you remember if there were any specific phrases or terms the hearing officer responded well to when you made that argument? I want to make sure I present it in the strongest way possible.
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Anastasia Kuznetsov
I'm dealing with a potential severance issue right now and this thread is incredibly helpful! For those who won their appeals, how long did it take to get the decision after your hearing? And did TWC automatically stop trying to collect the overpayment while your appeal was pending, or did you have to request that specifically? I'm worried they might start garnishing wages or something while I'm still fighting this. Also, has anyone had success getting a continuance if you need more time to gather documents? I just found out about some of these precedent cases and appeal manual sections mentioned here, but my hearing is next week and I'm not sure I can get everything organized in time.
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Finley Garrett
•Great questions! In my experience, TWC automatically stops collection efforts once you file an appeal - they can't pursue collection while it's pending. The decision took about 3 weeks after my hearing to arrive by mail. As for continuances, you can request one but you need a really good reason (like needing medical records or waiting for employer documentation). If your hearing is next week, I'd suggest calling the appeals office ASAP to request a continuance specifically to gather the precedent cases and appeal manual sections that others mentioned. Tell them you just learned about critical legal precedents that could affect your case. They're more likely to grant it if you can show the additional time would help resolve the matter correctly. Don't go in unprepared - a good continuance request is better than a rushed hearing!
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Isabella Costa
Just wanted to add something that hasn't been mentioned yet - if you're going to reference specific TWC policies or precedent cases during your hearing, make sure you bring printed copies for the hearing officer AND have the exact citation numbers ready. I've seen appeals get derailed because people mentioned legal precedents but couldn't provide the actual documents when asked. Also, regarding the COVID-era protections for agency errors - that was part of the federal waiver provisions, but Texas had additional state-level protections too. Look up Texas Government Code Section 2001.058 which deals with reliance on agency guidance. If you can show you reasonably relied on TWC's guidance and would be harmed by changing that guidance retroactively, this statute might apply to your situation. The key phrase to use is "detrimental reliance" - you changed your position (filed for benefits and reported income as instructed) based on their guidance, and now you'd be harmed if they change course. Document everything showing you followed their specific instructions and you should have a strong case!
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Andre Laurent
•This is incredibly thorough advice! I hadn't heard of Texas Government Code Section 2001.058 before, but "detrimental reliance" sounds exactly like what happened in my situation. I followed TWC's specific guidance to file and report my severance, and now I'm being penalized for doing exactly what they told me to do. I'll definitely look up that statute and bring printed copies to my hearing. The point about having exact citation numbers ready is also really important - I don't want to fumble around trying to find references when the hearing officer asks for them. Thank you for mentioning the federal waiver provisions too. I remember there being a lot of talk during COVID about protecting people from overpayments that weren't their fault, but I wasn't sure how to find the specific legal basis for that protection. This gives me several concrete legal arguments to make beyond just "I reported everything correctly.
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Katherine Shultz
I won a very similar severance overpayment appeal about 6 months ago, and reading your story brings back all those same feelings of panic and frustration! The fact that you called TWC beforehand and reported everything properly puts you in a really strong position. Here's what worked for me: I created a simple one-page summary showing the timeline - when I was laid off, when I called TWC, what they told me, when I filed, and how I consistently reported my severance on every payment request. The hearing officer could see at a glance that I acted in good faith throughout the entire process. Also, don't underestimate how powerful it is that you have those payment request confirmations showing you disclosed the severance. That's your smoking gun evidence that you weren't trying to hide anything. The hearing officer in my case said that kind of consistent disclosure pattern was exactly what they look for when determining whether someone was acting fraudulently or just following bad guidance. One last tip - when they ask you questions, keep referring back to the fact that you specifically called to ask how to handle the severance and followed their instructions exactly. Don't let them make it about whether you "should have known" the rules differently. This is about whether you reasonably relied on their guidance, and you clearly did. You've got a very winnable case here!
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