Unemployment Insurance - An Overview

By: Jikku John

Legal Counsel to Commissioner Joe Esparza

When employers contact our office for guidance on handling unemployment claims, we often break down the process into smaller, manageable steps. This guide aims to simplify the process of handling unemployment claims, which can sometimes feel overwhelming, making it easier to understand and execute.

Initial Clam:

Once a worker is no longer performing services for pay, a “work separation” has taken place, and the worker is free to file an initial claim for benefits. Benefits are payable if the claimant is out of work through no fault of their own and is otherwise eligible. See https://efte.twc.texas.gov/ui_law_eligibility_issues.html. Once the initial claim is filed, TWC sends a notice of initial claim to the last employing unit via regular mail or electronic correspondence. The employer then has 14 calendar days from the date mailed to file a timely written response, thereby making itself a party of interest with appeal rights to the case.

For employers, responding fully, and in a timely fashion, is necessary. Claim responses should be prompt and provide comprehensive, factual information that goes beyond simply disagreeing with the claim.  The claim response may be filed by mail, fax, hand-delivery, telephone, or via TWC’s internet claim website for claim responses. See  https://www.twc.texas.gov/employer-resources/ern.

Initial Determination:

The claims examiner investigates the claim and makes an initial determination. TWC sends copies of the determination to all interested parties to the case. If faced with an unfavorable outcome, the employer should file an appeal to the determination requesting a hearing within 14 calendar days of the date on the determination. An appeal must be in writing and submitted via fax, mail, delivery service, in-person delivery to any TWC office, or through the online appeal portal before the appeal deadline.

Appeal Tribunal:

Generally, once an appeal has been filed, notwithstanding any exceptions, the Appeals Department will mail notices of the appeal hearing to the claimant, the employer, and any representatives they may have designated.

Principally, the hearing will take place over telephone and be presided over by a Hearing Officer. The employer should treat the hearing as if it is the only chance it will receive to explain its side of the work separation. Equally, the employer should produce firsthand testimony from witnesses with direct, personal knowledge leading to the claimant’s work separation. Although documentary evidence is beneficial and always permissible, testimony from firsthand witnesses with direct personal knowledge should always take priority. The parties have the right to offer direct testimony, conduct cross-examination, and make concluding remarks. The hearing officer will then issue a written decision, either affirming, reversing, or modifying the determination that was appealed. The decision will be mailed to the parties.

Commission Appeal:

Any party can appeal an adverse Appeal Tribunal decision to the three-member Commission, but they must do so in writing according to the instructions on the decision within 14 calendar days of the date that the decision is mailed. In the case of a timely appeal, the Commission may either affirm, reverse, or modify the Appeal Tribunal decision, or it may order a further hearing. Although the Commissioners do not take testimony from the parties, they may consider relevant written materials submitted after the hearing. In such a case, the Commission will order a rehearing to officially admit the new evidence into the record.

Motion for Rehearing:

The final stage of the administrative appeal process is the motion for rehearing. The appeal must be filed in writing in accordance with the decision, and within 14 calendar days of the date the Commission decision is mailed. In order for the Commissioners 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, it will mail to each party a written decision that is appealable to a court.

Conclusion:

For questions about this issue, or any other employment-related matters, employers can call our employer hotline at: 1-800-832-9394, or email us at: [email protected].