(a) An individual is disqualified for benefits for a benefit period for which the individual is receiving or has received remuneration in the form of:
(1) wages in lieu of notice;
(2) severance pay; or
(3) compensation under a state worker’s compensation law or a similar law of the United States for:
(A) temporary partial disability;
(B) temporary total disability; or
(C) total and permanent disability.
(b) In this section, “severance pay” means dismissal or separation 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 release of claims or settlement agreement entered into between the employee and the employer:
(A) based on an alleged violation of the Civil Rights Act of 1991 (Pub. L. No. 102-166); or
(B) pursuant to a claim or cause of action filed in connection with the employment relationship; or
(2) a written contract, including a collective bargaining agreement, negotiated with the employer before the date of separation from employment of the employee.

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Terms Used In Texas Labor Code 207.049

  • Contract: A legal written agreement that becomes binding when signed.
  • Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

(c) The commission may adopt rules as necessary to administer this section.