How to Respond to a TWC Unemployment Claim

The envelope from the Texas Workforce Commission (TWC) tends to arrive at the worst moment, often a few weeks after you let someone go. Many owners set it aside, assuming it is junk or that it does not matter. It matters, and the clock starts when TWC mails it, not when you open it. Here is what the notice is, what to do, and how to avoid the common mistakes.

What the notice is

When someone applies for unemployment benefits, TWC sends a Notice of Application for Unemployment Benefits to the last employer for a new claim. For an existing claim, it may send a Request for Work Separation Information instead. Either way, TWC is asking you to explain why the person's job ended. TWC says to respond promptly with detailed information about the separation.

The deadline that matters

You have 14 calendar days from the date TWC mails the notice. Weekends and holidays count, unless the last day falls on a weekend or an official state holiday, in which case TWC's guidance says the deadline moves to the next business day. TWC's own employer guidance lists the most common reasons for late responses, including thinking the deadline means business days.

Responding on time makes you an "interested party" to the claim. That means you receive the decision on whether benefits will be paid, and you keep the right to appeal it. If you respond late, TWC explains that you are not an interested party, you do not receive the determination, and you do not have the right to appeal it. You can still appeal the determination that says your response was late. See TWC's page on the appeals process for employers.

Step 1: Find the date and the claimant

Check the mailing date on the notice and write the deadline on your calendar. Then look up the name and Social Security number in your records. People change names, and the number is on the notice. If you cannot find any record of the person, still file a timely response saying so, and then follow up with TWC. TWC's guidance specifically warns against missing the deadline because a name looked unfamiliar.

Step 2: Respond on time, even if you are not done investigating

A timely response is what protects you. TWC notes that a complete investigation is not required in order to respond. You can send the basics now and add detail later. If you have a way to respond online, TWC recommends its online employer response. You can also respond by fax, mail, or phone using the instructions on the notice.

TWC also notes that a quick reply helps it catch fraud, and responding within 48 hours is encouraged even though you have 14 days. If the person is still working for you, or never worked for you, report that through TWC's fraud reporting process and still respond to the notice.

Step 3: Give the facts TWC asks for

TWC lists what to include. Keep your answer factual and organized:

• Dates worked
• The reason the job ended
• Any additional pay given
• Details of the separation, including the final incident, prior warnings, copies of relevant policies, and witness statements
• The name and phone number of a contact person

Stick to what happened, when, and what was said. Dates beat adjectives. If you gave warnings, attach them. If you have a written attendance or conduct policy that applies, attach that too. This is where the documentation you built before the termination pays off. If you are planning a termination, How to Fire an Employee in Texas walks through how to build that record.

Step 4: Be consistent

Your answer to TWC should match what you told the employee, what is in the file, and what you would say anywhere else. Reasons that shift between the termination meeting and the unemployment response are a problem in any later dispute. If the real reason was performance, say performance. If it was a layoff, say that.

Step 5: Read the determination when it comes

If you are an interested party, TWC mails a determination explaining whether benefits will be paid. The letter explains how to appeal and by when, so check the dates the day it arrives. Unemployment benefits are not a punishment. TWC looks at the reason for the separation, including whether it was work-related misconduct under Texas law, and many people who lost a job for performance reasons can still qualify. Do not take it personally if a claim is approved.

Step 6: Understand the effect on your account

Benefits paid to a former employee can be charged to your unemployment tax account, which can affect your tax rate. That is one reason timely responses matter, and one reason a clean, well-documented separation is good for the business. For questions about your account, the TWC Tax Department can help.

Assign someone to watch the mail

TWC's guidance points out that owners get into trouble when nobody is checking for important mail, or when a business assumes an outside consultant or attorney is handling it. Choose one person who opens TWC mail, writes the deadline down, and sends a preliminary response. If you hire someone to handle it, confirm in writing that it is done.

Frequently asked questions

This article is general information for business owners and is not legal advice. For a specific situation, talk with an employment attorney.