Unemployment Claim and Appeal Process

The Texas Workforce Commission holds responsibility for the state unemployment compensation program. Below is a brief outline of the unemployment claim and appeal process, in order of occurrence.

Initial Claim: Once an employee is no longer working, a "work separation" occurs and the worker may file an initial claim for unemployment benefits. If the claimant is out of work due to no fault of his own, and otherwise eligible, benefits are payable.

Immediately after the initial filing, TWC mails a notice of the initial claim, a "notice of application for unemployment benefits," to the organization or individual listed as the "last employing unit" where the claimant last worked for pay.
The employer has 14 calendar days to file a timely written response to make itself a "party of interest" with appeal rights.
Claim responses may be filed by mail, fax, telephone, or by TWC's Internet claim response site at www.texasworkforce.org/ui/er.html

Initial Determination: TWC makes an initial determination, a "determination on payment of unemployment benefits," and mails copies of the decision to all interested parties. If the employer filed a late response to the initial claim, the determination is a "late protest" ruling.

In any case of a "late protest" ruling, the employer should allege the problem was outside its power of control as the reason for an untimely protest, if it wishes a hearing on the underlying merits of the unemployment claim.
If the employer filed no response and the claimant draws benefits, the employer receives a notice of maximum potential chargeback, a "wage verification notice."
No matter which form the initial determination takes for the employer, the employer should file a written appeal and request for a hearing within 14 calendar days of the date TWC mails the ruling.

Appeal Tribunal: Once an appeal has been filed, the Appeals Department dismisses the appeal, issues an on-the-record decision, or sets up an appeal hearing.

This appeal is dismissed if it is filed outside the 14-day appeal period.
If the employer fails to disagree that it filed a late protest to an initial claim notice, an on-the-record decision is issued affirming the fact of a late protest.
In all other cases, the Appeals Department mails notices of an appeal hearing to the claimant, the employer, and any representatives they may have designated.
Appeals hearings are usually held by telephone. The employer should act as if this is the only chance to explain its side of the situation.
In general, firsthand testimony from witnesses with direct, personal knowledge of the events leading to the claimant's work separation takes precedence over all other forms of evidence.
Documentary evidence may be entered as exhibits.
When a hearing is by phone, the employer must send copies of any exhibits to both the hearing officer and the claimant.
Failure to send copies to the claimant may result in the hearing officer refusing the items as exhibits.
All parties may offer direct testimony, conduct cross-examination, and make concluding statements.
Usually within one calendar week, the hearing officer issues a written decision either affirming, reversing, or modifying the determination which was appealed.

Commission Appeal: The three-member Commission board, appointed by the Governor for staggered six-year terms, heads The Texas Workforce Commission. The chairperson of the board represents the public at large, one commissioner represents employers and the other commissioner represents labor. The Commissioners are the highest authority within TWC in deciding an unemployment appeal.

Any party may appeal an adverse Appeal Tribunal decision to the three-member Commission.
An appeal must be done in writing within 14 calendar days of the date the hearing officer mails a decision or it will not be considered.
The Commission affirms, reverses or modifies the Appeal Tribunal decision. It may also order a further hearing.
Action on appeals occurs in a weekly docket meeting where the Commissioners cast their votes. They do not take testimony from the affected parties, but may consider relevant written materials submitted after the hearing.
In such a case, the Commission orders a rehearing to officially admit the new evidence into the record.
All three Commissioners sign the Commission's written decision. The losing party may either file a motion for a rehearing or an appeal to a court.

Motion for Rehearing: The final stage of the administrative appeal process is this motion, which must be filed in writing within 14 calendar days of the date the original Commission decision is mailed

To grant a rehearing, the motion must offer new evidence, give a compelling reason why the evidence could not have been offered earlier, and show specifically how it could change the outcome of the case.
If the Commission denies the motion, a written decision is mailed to each party that can be appealed to a court.

Court Appeal: A Commission decision is final 14 calendar days from the date it is mailed.

After the Commission decision is final, the losing party may file a court appeal within 14 calendar days.
Therefore, the court appeal period is between the 15th and 28th calendar days following the last Commission decision mailing date.
Because the standard of review is the "substantial evidence rule," there is no right to a jury trial in an unemployment compensation case. The law provides for a trial de novo and the parties may present their entire case again for the judge.
The judge decides as a matter of law whether substantial evidence exists to uphold the TWC ruling.
The court's decision may be further appealed as in any other civil case.

Evidence Needed for a UI Claim and/or Appeal: While different situations require different evidence, some types of evidence are always required, no matter the cause of the claimant's work separation. These types are:

Firsthand testimony from witnesses with direct, personal knowledge of the events leading to the claimant's work separation, i.e. "the ones who saw it happen"
Documentation of policies, warnings, attendance, or any other subjects relating to the claimant's work separation
In a discharge case, evidence relating to a specific act of misconduct that happened close in time to the discharge, i.e., the event that precipitated the discharge
In a resignation case, evidence relating to whatever motivated the claimant to resign

Texas Unemployment, Labor Law and Appeals Information