Many Texans assume that if they were fired from a job, they are automatically disqualified from unemployment benefits. Others believe that quitting always makes them ineligible. Both assumptions are wrong.
In reality, eligibility for unemployment benefits in Texas depends on why you lost your job and whether your conduct meets the legal standards set by state law.
Understanding these rules can help you protect your income during periods of job loss—and avoid costly mistakes.
How Unemployment Benefits Work in Texas
Unemployment benefits in Texas are administered by the Texas Workforce Commission (TWC) under the Texas Labor Code.
Under Texas Labor Code § 207.021, a worker may qualify for benefits if they are:
- Unemployed through no fault of their own
- Able to work
- Available for work
- Actively seeking employment
Meeting these basic requirements is only the first step. The real legal issues arise when a worker was fired or quit.
Misconception #1: “If I Was Fired, I Can’t Get Unemployment”
This is one of the most common myths.
Being fired does not automatically disqualify you from unemployment benefits.
Under Texas Labor Code § 207.044, a claimant is disqualified only if they were discharged for misconduct connected with the work.
What Counts as “Misconduct”?
Texas law defines misconduct as intentional or negligent behavior that shows disregard for the employer’s interests, including:
- Repeated violation of company policies
- Willful disobedience of reasonable instructions
- Falsifying records
- Theft or dishonesty
- Chronic unexcused absences
Poor performance, mistakes, personality conflicts, or failing to “fit in” usually do not qualify as misconduct.
If you were fired for:
- Not meeting quotas
- Making errors
- Being laid off
- Company restructuring
- Lack of work
You may still qualify for benefits.
Misconception #2: “If I Quit, I’m Automatically Disqualified”
Quitting does make unemployment harder to obtain—but not impossible.
Under Texas Labor Code § 207.045, a worker is disqualified only if they voluntarily left work without good cause connected with the work.
Examples of “Good Cause” for Quitting
Texas recognizes many legitimate reasons for leaving a job, including:
- Unsafe working conditions
- Unpaid wages
- Harassment or discrimination
- Substantial changes in job duties
- Medical necessity
- Domestic violence issues
- Required relocation for a spouse’s job
If you can show that a reasonable person would have quit under the same circumstances, you may still be eligible.
Misconception #3: “My Employer Controls Whether I Get Benefits”
Many workers believe their employer gets the final say. That is false.
Employers can contest a claim, but they do not decide it.
The Texas Workforce Commission makes the final determination based on:
- Your statements
- Your employer’s statements
- Supporting documents
- Applicable law
Even if your employer objects, you can still win benefits if the evidence supports your claim.
Misconception #4: “I Don’t Need to Appeal a Denial”
Another costly mistake is failing to appeal.
Under Texas Labor Code § 212.201, claimants have only 14 days to appeal a denial.
If you miss this deadline, the decision usually becomes final—even if it was wrong.
Why Appeals Matter
Many initial denials are reversed on appeal when:
- Employers fail to prove misconduct
- Evidence is incomplete
- Facts are misunderstood
- Legal standards are misapplied
Appeals give you the opportunity to present testimony, documents, and witnesses.
Misconception #5: “Side Income Automatically Disqualifies Me”
Part-time work, gig income, or freelance work does not necessarily disqualify you.
Under Texas Labor Code § 207.008, claimants must report earnings, but partial benefits may still be paid if income is below certain thresholds.
Failing to report income, however, can lead to overpayment penalties and fraud allegations.
Misconception #6: “Unemployment Is Free Money”
Unemployment benefits are insurance benefits funded by employer taxes. They are not “handouts.”
However, claimants must comply with strict rules, including:
- Weekly job searches
- Reporting requirements
- Availability for work
- Participation in reemployment programs
Failure to comply can result in disqualification or repayment obligations.
What To Do If Your Unemployment Claim Is Denied
If your claim is denied, take action immediately:
- File a timely appeal
- Gather documentation (emails, reviews, policies)
- Prepare witness testimony
- Review employer allegations
- Understand the legal standards
Many cases turn on how facts are presented, not just what happened.
Why Legal Guidance Matters in Unemployment Disputes
Although unemployment hearings are administrative, they are still legal proceedings governed by statutes and rules of evidence.
An attorney can help you:
- Frame your testimony properly
- Challenge employer claims
- Submit admissible evidence
- Preserve appeal rights
- Avoid future disqualifications
For professionals, executives, and long-term employees, benefits can total tens of thousands of dollars—making legal guidance well worth considering.
Final Thoughts: Know Your Rights Before You Assume You’re Disqualified
Too many Texans give up on unemployment benefits based on misinformation.
Remember:
- Being fired does not automatically disqualify you
- Quitting may still be justified
- Employers do not control decisions
- Appeals are critical
- Documentation matters
Understanding the law can protect your financial stability during difficult transitions.
If you have questions about unemployment eligibility, appeals, or disputes, consult a qualified Texas attorney before walking away from benefits you may legally deserve.
At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.
