Thread regarding Dell Inc. layoffs

Texas - Unemployment denied due to severance?

This is specific to Texas. Those who have recently been WFR'd, were you denied for unemployment due to receiving a severance? A co-worker who was part of the Sept. 22 round filed for unemployment on 9/22 and was initially approved for unemployment. She was paid for a couple of weeks of unemployment. She then received a phone call this week from TWC and said that since they received a severance, she would have to wait for 3.5 months (equal to the number of weeks Dell paid out) before she could receive unemployment.

Has this been everyone's experience in Texas? I was also part of the 9/22 round but filed a bit later because I wanted a small break.

by
| 3631 views | | 16 replies (last November 6, 2023) | Reply
Post ID: @OP+1ppkzli3

16 replies (most recent on top)

@3uda+1ppkzli3

In fairness you really shouldnt be getting this kind of advice from a anon board full of disgruntles

This is basic UI information. not rocket science.

by
| | Reply
Post ID: @3udm+1ppkzli3

@3ori+1ppkzli3

I told them that I received the severance because I didn’t want to exclude reporting it in case that could be a disqualification for not being forthcoming about it. I don’t know if Dell reports it to them either.

I did not hire an attorney. I don’t think it’s necessary so it was just me and TWC on the call. Dell does not attend the call nor did they contest my appeal.

Hope that helps.

…and on a side note, I wish this site would let certain posts be tagged so they can be quickly referenced since a lot of the same questions are asked each WFR cycle. (Only stating that in response to the negative comments people are posting about asking repetitive questions) *rolling eyes

by
| | Reply
Post ID: @3uda+1ppkzli3

You’re welcome for the info.

Regarding your question, I claimed that I received it and there’s no room to clarify so you will be denied and then you file for the appeal which lets you explain more and provide evidence of what the payment was for.

Not sure where in the process they ask this question:

Was the payment given in exchange for a release of claim or as the result of a settlement agreement with the employer? ( I said Y but not sure if that was right)

Last question though I didn’t answer but probably use this section:

If you received this payment due to any reasons not listed above, explain.

Maybe the release of claim question should have been N and then answered the latter question stating that payment was made for release of liability and had you not signed, there would be no payment since it was contingent on agreeing not to sue Dell in the future.

Hope that helps.

Best of luck!

by
| | Reply
Post ID: @3fhy+1ppkzli3

YOU RECEIVED SEVERANCE. Declare it.
I hate these sort of posts since it servers to embolden the most ignorant.

Do not play footsie or word games with the agency. They will look for every opportunity to deny you benefits. Not disclosing due to ignorance is an invalid excuse.

You got severance. Dell literally states it hands out severance.

Be honest but know your rights!

by
| | Reply
Post ID: @3htx+1ppkzli3

To the person who posted the information on the appeals process, thank you.

A question on one of the questions. How did you respond to this one? I could argue my answer should be No, since I did not receive a payment for a period after my last day. What I got was a lump sum that had nothing to do with my last day. I guess it is how the question is interpreted.

Did the claimant receive any payments from the employer for any period after his last day?

by
| | Reply
Post ID: @3wqc+1ppkzli3

they will ask you if you received severance or any other remuneration
saying otherwise will be fraud.

my gawd you people are hopeless

by
| | Reply
Post ID: @3lkh+1ppkzli3

@2xpa+1ppkzli3
Did you tell them that you are receiving severance or how did they find out?
During your hearing, was it just you or also a representative from the previous employer?

by
| | Reply
Post ID: @3ori+1ppkzli3

Yes. You will have to appeal and say this type of severance is excluded based on Sec. 207.049. RECEIPT OF REMUNERATION: (b)(1)(A)

Repeat: this severance is excluded from consideration of unemployment benefits.

It will be a fight.
A judge will or someone versed in the law will need to hear your appeal. Your run of the mill TWC employee will know nothing and auto-deny you.

Best case scenario: your severance will be excluded from consideration and unemployment benefits will be paid in full immediately.

Worst case: you will have to wait for when your severance runs (however weeks you collected) out to collect unemployment benefits.

Being unemployed you have a lot of time on your hands to go thru the fight and pain

by
| | Reply
Post ID: @2jru+1ppkzli3

YOU CAN GET BOTH--but it's a fight to get it. At least that was my experience. If you were denied, appeal it and get your money.

I wouldn't think the decision would depend on the Hearing Officer since the reinstatement of benefits referenced a specific portion of Texas Law which that shouldn't be open to interpretation. FYI, Dell did not contest the request for the unemployment, nor did they show up at the phone hearing.

TWC reversed their denial to pay my claim based on Section 207.049 listed below. See specifically (b)(1)(A). And, I received all of my backpay for prior week's claims before their calculated denial end date--and payments resumed on a bi-weekly basis.

I included the link to the TWC handbook that's since been removed (no surprise there, couldn't believe it was even published publicly) and I included an excerpt from the handbook for denial appeals over severance. These are the questions that the Hearing Officer will ask you. Hopefully this is helpful.

Texas Labor Code Link (active):
https://statutes.capitol.texas.gov/Docs/LA/htm/LA.207.htm

Sec. 207.049. RECEIPT OF REMUNERATION. (a) An individual is disqualified for benefits for a benefit period for which the individual is receiving or has received remuneration in the form of:

(1) wages in lieu of notice;
(2) severance pay; or
(3) compensation under a state worker's compensation law or a similar law of the United States for:
(A) temporary partial disability;
(B) temporary total disability; or
(C) total and permanent disability.

(b) In this section, "severance pay" means dismissal or separation income paid on termination of employment in addition to the employee's usual earnings from the employer at the time of termination. The term does not include any remuneration received by an employee under:

(1) a release of claims or settlement agreement entered into between the employee and the employer:

(A) based on an alleged violation of the Civil Rights Act of 1991 (Pub. L. No. 102-166); or
(B) pursuant to a claim or cause of action filed in connection with the employment relationship; or

(2) a written contract, including a collective bargaining agreement, negotiated with the employer before the date of separation from employment of the employee.

(c) The commission may adopt rules as necessary to administer this section.

*
Hearing Officer Handbook Link (page not found error) and excerpt about severance pay appeal discovery questions:

https://www.twc.texas.gov/appeal-hearing-officer-handbook-hearing#1SampleQuestionsForCertainHearingFactPatterns

Questions:

Where did the claimant last work before filing for benefits?
How long did he work there?
What was his salary or pay rate?
Was he discharged from his work there or did he quit?
On what date was the claimant told he was being discharged?
What was the claimant's last day of work?
Was claimant given advance notice he was to be terminated on THAT day.
Did the claimant receive any payments from the employer for any period after his last day?
How much did he receive?
What period did the payments cover?
Were the payments based on length of service?
Were the payments part of a contractual agreement between the claimant and the employer?
Did the claimant sign a contract/release/agreement not to sue?
What would the claimant have received had he not signed the contract/release/agreement not to sue?
Were the payments for prior services?
What did the employer say was the purpose of the payments?
Was anything written on the payments themselves saying for what purpose they were being given?
What was the employer's intent in giving this money to the claimant?
Were the payments made to satisfy the WARN Act?

by
| | Reply
Post ID: @2yvd+1ppkzli3

YOUR unemployment payments will be deferred because of the severance.
That is if you got laid off in June 1 and got 2 months severance, you will not be eligible for unemployment payment until August 1

https://statutes.capitol.texas.gov/Docs/LA/htm/LA.207.htm

by
| | Reply
Post ID: @2zpi+1ppkzli3

PLEASE READ FOR HIW TO RECEIVE YOUR PAYMENTS

Yes, you’ll receive payments until the severance is paid and then TX WFC will cancel payments based on their calculation of money received. When you receive that notice you MUST file an appeal. My appeal was initially denied and I had to schedule a hearing which is simply a phone call. I provided documentation that the “severance” was NOT a payment in lieu of notice nor a payment for lost wages. Per the separation agreement, the severance payment was contingent on releasing Dell of any liability. Had I stated that more clearly in the appeal it may not have been denied but I can’t confirm that. I presented my documentation from the separation agreement and my appeal was FINALLY approved. Because it had been 5+ months of filing every 2 weeks without payment, upon approval the WFC sent me a lump sum payment for all those missed weeks and continued payments until the maximum benefit amount ran out, which it did. Thankfully I now have a job offer.

If you Google TWC appeals and hearing process (hearing officer handbook) you will come across the documentation for hearings and the questions that the Hearing Officer will ask and they follow that verbatim. 2 of the questions are about clarifying whether or not the severance is about releasing liability.

Hopefully this will help folks moving forward or who were previously denied.

***and for the hearing call, you must turn off all spam blocker apps or services offered thru AT&T or you will miss their call. My phone wouldn’t even ring as the call was auto routed to VM and didn’t even ring so I missed my initial hearing and had to reschedule it. Which then meant I had to have a hearing about whether or not I had “good cause” for missing the hearing and cause for payments to be reinstated.

Seriously the process was a nightmare and hoping this helps people not have to go thru what I did.

by
| | Reply
Post ID: @2xpa+1ppkzli3

@OP+1ppkzli3. FYI - being out of work your expenses sky rocket! Insurance for myself and 2 kids is now $1400 a month. Also that severance check was taxed at any extremely high rate ( 30%). Even if you got 12 weeks of severance which you had to wait about 4 weeks for, you don't receive 12 weeks of funds! So yeah, the way the unemployment office is calculating by the week before paying any benefits is screwed up.

by
| | Reply
Post ID: @1beq+1ppkzli3

"severance check helps but screws you in so may ways"

yes. giving me many months of salary is screwing me over.

by
| | Reply
Post ID: @1nuv+1ppkzli3

Same in New York State, they divide your severance by the amount you input on their forms for weekly salary and say you can not apply for that many weeks, so a bonus will extend the wait time unless you take your W2 and divide by 52, I went by bi-weekly check and divided by 2
The one time severance check helps but screws you in so may ways

by
| | Reply
Post ID: @1xnh+1ppkzli3

Yes. It happened to me on Feb '23. Two months severance, and then after that date, then unemployment would kick in. Exhausted it all now, still looking for work..market suuuuuuuuuuucks right now.

by
| | Reply
Post ID: @bmi+1ppkzli3

Generally UI starts after severance runs out.
It's up to them.

It is literally stated in the webpage

"We make a decision on whether the severance pay affects the claimant’s benefits."

https://www.twc.texas.gov/employer-resources/unemployment-benefits-basics

by
| | Reply
Post ID: @xfb+1ppkzli3

Post a reply

: