Articles Posted in Unemployment benefits

In Texas, final compensation policies and practices are regulated by the state’s Payday Law. Among other things, the law instructs employers and employees on their rights after an employee leaves employment. In cases in which an employee is fired, discharged, laid off, or involved in any other involuntary separation, they are due their pay within six calendar days. In instances in which the employee leaves voluntarily, such as by quitting or retiring, they are due their final pay on the next regularly scheduled payday.

Texas Severance Pay

Under the Texas Payday Law, Texas employers are not required to provide their employees with severance pay, although many employers do provide this or may be required to provide this for a multitude of reasons, such as provisions in Texas employment contracts.

Severance pay is a type of compensation that some companies offer when employees are terminated due to no fault of their own. This is usually applicable in situations in which an employee has worked at a particular job for some length of time or in a certain position and has been let go. Generally, employers use a set formula to determine when an employer will be due severance pay. The theory behind severance pay is to compensate the employee for the lack of advance notice of their termination. Although the Fair Labor Standards Act (FLSA) does not mandate severance pay, many Texas employers offer this type of compensation.

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Usually, you can’t get unemployment benefits if you quit your job. However, if you quit for good cause, it may be possible to get unemployment benefits. When you apply for unemployment benefits, the Texas Workforce Commission will investigate why you’re not working anymore. If it decides you weren’t terminated for misconduct at your job, or you quit your job for a work-related or medical reason, you might be eligible for unemployment benefits.

What is good cause? There are a lot of reasons people quit their jobs that do not count as “good cause.” For example, people quit because they decide that they are not being paid enough to do a particular job or because they want to move onto a job that is more fulfilling. Generally, you cannot receive unemployment benefits if you quit your job for those reasons. The reason must be something more severe, such as harsh harassment or serious discrimination.

A 2016 Texas unemployment benefits decision illustrates a situation in which a woman could not get unemployment benefits, even though she’d alleged racial discrimination. A woman appealed from a summary judgment that affirmed the Texas Workforce Commission’s decision to deny her unemployment benefits because it found she voluntarily resigned from her job. She claimed her resignation was based on racial discrimination and harassment. Continue reading

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