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A BILL TO BE ENTITLED
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AN ACT
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relating to the qualification for unemployment benefits of a person |
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receiving severance pay. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 207, Labor Code, is |
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amended by adding Section 207.0491 to read as follows: |
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Sec. 207.0491. RECEIPT OF SEVERANCE PAY. (a) In this |
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section, "severance pay" means income paid on termination of |
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employment in addition to the employee's usual earnings from the |
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employer at the time of termination. The term does not include any |
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remuneration received by an employee under: |
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(1) a settlement agreement entered into between the |
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employee and the employer based on alleged sexual harassment or |
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other alleged employer misconduct; or |
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(2) a written contract, including a collective |
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bargaining agreement, negotiated with the employer before the date |
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of separation from employment of the employee. |
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(b) An individual is disqualified for benefits if the |
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individual is receiving severance pay. |
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(c) The disqualification under this section continues for |
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the number of weeks computed by dividing the individual's gross |
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severance package by the individual's gross weekly wage during the |
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individual's benefit year. |
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SECTION 2. This Act applies only to eligibility for |
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unemployment compensation benefits based on a claim that is filed |
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with the Texas Workforce Commission on or after the effective date |
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of this Act. A claim filed before the effective date of this Act is |
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governed by the law in effect on the date the claim was filed, and |
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the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |