Can I Receive Unemployment & Workman's Compensation in the State of Texas?
You cannot receive unemployment benefits and workers' compensation at the same time in Texas, unless you are permanently and partially disabled from an injury occurring before 1989. Texas has laws regarding reporting of new hires in an effort to prevent fraud by people trying to collect both unemployment and workers' compensation. Unlike most states, Texas does not require employers to purchase workers' compensation insurance.
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New Hire Reporting Law
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Known as the State Directory of New Hires Act, this Texas law requires employers to report new and rehired workers within 20 days of hiring. Employers failing to report newly hired employees to the Texas Employer New Hire Reporting Operations Center are penalized $25 for each unreported worker, and up to $500 for "conspiring with a newly-hired employee" to not make this report. The report must include the company name and address, federal tax identification number, name of employee and social security number and address.
Purpose of New Hire Law
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The new hire reports are used to track fraud from various programs, including unemployment and workers' compensation. It is also used to track those owing back child-support payments. Reduction of fraud benefits employers since funds misused in unemployment fraud are recouped by higher unemployment taxes, which they pay. Since the new hire must provide a social security number, cross-matching the numbers may turn up potential conflicts or validity questions.
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Workers' Compensation Benefits
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Employees injured on the job or suffering from an employment-related illness may qualify for workers' compensation benefits. While Texas employers do not have to supply workers' compensation insurance, those that do must inform employees at the time of hire. Workers’ compensation pays the injured employee's medical bills even if the employee is covered by health insurance, and replaces part of lost pay. By accepting workers' compensation, the employee generally forfeits the right to sue the employer for damages.
Unemployment Benefits
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Overseen by the Texas Workforce Commission, workers losing their jobs through no fault of their own may be eligible for unemployment benefits. Necessary information for filing a claim include the previous employer's company name and address; first and final dates of working for the former employer; hours worked and the pay scale for the last week of work, and normal wage rates. The worker must supply his social security number or alien registration number if he is not a United States citizen. Workers receiving unemployment benefits must continue to seek work and report any income earned to the unemployment office.
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