82R6798 JSC-D
By: Murphy H.B. No. 14
A BILL TO BE ENTITLED
AN ACT
relating to the qualification for unemployment benefits of a person
receiving severance pay.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 207, Labor Code, is
amended by adding Section 207.0491 to read as follows:
Sec. 207.0491. RECEIPT OF SEVERANCE PAY. (a) In this
section, "severance pay" means 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 settlement agreement entered into between the
employee and the employer based on alleged sexual harassment or
other alleged employer misconduct; or
(2) a written contract, including a collective
bargaining agreement, negotiated with the employer before the date
of separation from employment of the employee.
(b) An individual is disqualified for benefits if the
individual is receiving severance pay.
(c) The disqualification under this section continues for
the number of weeks computed by dividing the individual's gross
severance package by the individual's gross weekly wage during the
individual's benefit year.
SECTION 2. This Act applies only to eligibility for
unemployment compensation benefits based on a claim that is filed
with the Texas Workforce Commission on or after the effective date
of this Act. A claim filed before the effective date of this Act is
governed by the law in effect on the date the claim was filed, and
the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.