Do We Have to Pay Unemployment Benefits for an Employee Who Quits in Texas?
The point of the unemployment benefits program in Texas, as in other states, is to provide a measure of financial help to employees who lose their jobs and are not at fault. For that reason, quitting a job is often grounds for disqualifying the employee from benefits. Because your unemployment tax liability rises if an employee collects benefits, information on eligibility issues is crucial.
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Basics
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In most cases, quitting a job does not give an employee a viable claim to unemployment benefits. The Texas Workforce Commission lists several instances in which quitting might be justifiable from the standpoint of benefits eligibility: unsafe working conditions, significant changes in the terms of the job, unpaid wages and documented cases of domestic violence or stalking. Employees must prove that they tried to correct work-related issues before quitting. In the cases of employees who quit to move with their spouses, the state allows them to receive benefits but reduces their eligibility period. Military spouses who quit a job do not face a reduction.
Considerations
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When the state makes an initial ruling about an employee's eligibility for unemployment benefits, as well as during any subsequent appeals, the reason for the separation from employment becomes critical. In the case of a termination for misconduct, for example, the burden of proof is on the employer because the employer initiated the separation. In the case of an employee who quit, the burden of proof is on the employee for the same reason. The employee must demonstrate he had good cause to quit in accordance with state laws. Failure to do so will result in a disqualification.
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Penalty
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For Texas employees ruled ineligible for unemployment benefits after quitting, the disqualification lasts until they find gainful employment for six weeks at 30 or more hours per week, or earn wages of at least six times their weekly benefit rate. If enough time passes before the employee's next benefits claim, the claim might not have any financial impact on your business. Only companies that have employed the worker during the worker's "base period" contribute to the worker's benefits. To determine the base period, consider the five finished calendar quarters leading up to a claim. The first four of those quarters are the base period.
Tips
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The Texas Workforce Commission offers suggestions to employers for responding to benefits claims by employees who quit. The keys are to show that work remained available when the employee quit, that the employee left for personal reasons or had no legitimate work-related reason for leaving and, if applicable, that the employee left without giving you a chance to address any grievances that led to the resignation. If the employee quit because of a reprimand, demotion or any kind of punishment, according to the TWC, you should plan on presenting strong evidence to thwart an attempt to claim good cause.
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References
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