CHAPTER 201. UNEMPLOYMENT COMPENSATION ACT--GENERAL PROVISIONS

State Codes and Statutes

Statutes > Texas > Labor-code > Title-4-employment-services-and-unemployment > Chapter-201-unemployment-compensation-act-general-provisions

LABOR CODE

TITLE 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT

SUBTITLE A. TEXAS UNEMPLOYMENT COMPENSATION ACT

CHAPTER 201. UNEMPLOYMENT COMPENSATION ACT--GENERAL PROVISIONS

SUBCHAPTER A. SHORT TITLE; APPLICATION OF SUNSET ACT

Sec. 201.001. SHORT TITLE. This subtitle may be cited as the

Texas Unemployment Compensation Act.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER B. GENERAL DEFINITIONS

Sec. 201.011. GENERAL DEFINITIONS. In this subtitle:

(1) "Base period" means:

(A) the four consecutive completed calendar quarters, prescribed

by the commission, in the five consecutive completed calendar

quarters preceding the first day of an individual's benefit year;

(B) for an individual precluded because of a medically

verifiable injury or illness from working during a major part of

a calendar quarter of the period that would otherwise be the

individual's base period under Paragraph (A), the first four

calendar quarters of the five consecutive calendar quarters

preceding the calendar quarter in which the illness began or the

injury occurred if the individual files an initial claim for

benefits not later than 24 months after the date on which the

individual's injury or illness began or occurred.

(2) "Benefit" means the money payable under this subtitle to an

individual because of the individual's unemployment.

(3) "Benefit amount" means benefits an individual is entitled to

receive for one benefit period of total unemployment.

(4) "Benefit period" means the seven consecutive calendar days

ending at midnight on Saturday and is the period for which

entitlement to benefits is determined.

(5) "Benefit year" means the 52 consecutive calendar weeks

beginning with the week for which an individual files a valid

initial claim for benefits.

(6) "Calendar quarter" means a period of three consecutive

calendar months ending on:

(A) March 31, June 30, September 30, or December 31; or

(B) the dates prescribed by rule of the commission.

(7) "Chargeback" means the benefits charged to an employer's

account under Section 204.021.

(8) "Commission" means the Texas Workforce Commission.

(9) "Compensation fund" means the unemployment compensation

fund.

(10) "Contribution" means a tax payment under this subtitle to

the compensation fund.

(11) "Employing unit" means a person who, after January 1, 1936,

has employed an individual to perform services for the person in

this state.

(12) "Employment office" means a free public employment office

operated by this state or maintained as a part of a

state-controlled system of public employment offices. The term

includes a branch office.

(13) "Initial claim" means a notice filed under Section

208.001(a) to establish a benefit year by an individual who does

not have a benefit year in effect at the time the notice was

filed.

(14) "Institution of higher education" means:

(A) a college or university in this state; or

(B) a public or other nonprofit educational institution that:

(i) admits as regular students only individuals with a

certificate of graduation or equivalent credentials;

(ii) is legally authorized to provide an educational program

beyond high school; and

(iii) provides an educational program:

(a) for which the institution awards a bachelor's or higher

degree;

(b) that is acceptable for full credit toward a bachelor's or

higher degree; or

recognized occupation.

(15) "Mail" means the United States Postal Service or any other

method approved by the commission to provide actual notice,

including an electronic transfer system.

(16) "Reimbursement" means a payment made in accordance with

Chapter 205.

(17) "Reimbursing employer" means an employer making payments in

accordance with Chapter 205.

(18) "State" means a state of the United States, Puerto Rico,

the District of Columbia, or the Virgin Islands.

(19) "Taxed employer" means an employer who pays a contribution

under this subtitle.

(20) "Temporary employee" means an individual employed by a

temporary help firm for the purpose of being assigned to work for

the clients of a temporary help firm.

(21) "Temporary help firm" means a person who employs

individuals for the purpose of assigning those individuals to

work for the clients of the temporary help firm to support or

supplement a client's work force during employee absences,

temporary skill shortages, seasonal work loads, special

assignments and projects, and other similar work situations.

(22) "United States" includes, in a geographic context, each

state.

(23) "Valid claim" means a claim filed by an unemployed

individual who has received the wages necessary to qualify for

benefits.

(24) "Warrant" means a written payment order or an electronic

payment order that is a part of an electronic fund transfer

system approved by the commission.

(25) "Week" means seven consecutive calendar days as prescribed

by the commission.

(26) "Indian tribe" has the meaning assigned by Section 3306(u),

Federal Unemployment Tax Act (26 U.S.C. Section 3306), as

amended. A reference in this subtitle to an Indian tribe includes

a tribal unit, a subdivision or subsidiary of an Indian tribe,

and a business wholly owned by an Indian tribe.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1995, 74th Leg., ch. 76, Sec. 9.23(a), eff. Sept.

1, 1995; Acts 2001, 77th Leg., ch. 518, Sec. 1, eff. June 11,

2001; Acts 2003, 78th Leg., ch. 817, Sec. 10.13, eff. Sept. 1,

2003.

Sec. 201.012. DEFINITION OF MISCONDUCT. (a) "Misconduct" means

mismanagement of a position of employment by action or inaction,

neglect that jeopardizes the life or property of another,

intentional wrongdoing or malfeasance, intentional violation of a

law, or violation of a policy or rule adopted to ensure the

orderly work and the safety of employees.

(b) The term "misconduct" does not include an act in response to

an unconscionable act of an employer or superior.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

SUBCHAPTER C. DEFINITION OF EMPLOYER

Sec. 201.021. GENERAL DEFINITION OF EMPLOYER. (a) In this

subtitle, "employer" means an employing unit that:

(1) paid wages of $1,500 or more during a calendar quarter in

the current or preceding calendar year; or

(2) employed at least one individual in employment for a portion

of at least one day during 20 or more different calendar weeks of

the current or preceding calendar year.

(b) The definition provided by this section does not apply to an

employing unit covered by Section 201.023 or to farm and ranch

labor covered by Section 201.028.

employing unit that maintains two or more separate establishments

in this state is employed by a single employing unit for purposes

of this subtitle.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.022. EFFECT OF BUSINESS ACQUISITION. In this subtitle,

"employer" also means an individual or employing unit that

acquires or otherwise receives, through any means, all or part of

the organization, trade, business, or workforce of another that

was an employer subject to this subtitle at the time of the

acquisition.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

1315, Sec. 1, eff. September 1, 2005.

Sec. 201.023. TAX-EXEMPT NONPROFIT ORGANIZATION. In this

subtitle, "employer" also means an employing unit that:

(1) is a nonprofit organization under Section 501(c)(3),

Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3));

(2) is exempt from income tax under Section 501(a), Internal

Revenue Code of 1986 (26 U.S.C. Section 501(a)); and

(3) employed at least four individuals in employment for a

portion of at least one day during 20 or more different calendar

weeks during the current year or during the preceding calendar

year.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.024. ELECTION TO BE EMPLOYER. In this subtitle,

"employer" also means an employing unit that has elected to

become an employer under Section 205.001, 205.002, 206.002, or

206.003.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.025. EMPLOYER UNDER FEDERAL LAW. In this subtitle,

"employer" also means:

(1) an employing unit that is liable for the payment of taxes

under the Federal Unemployment Tax Act (26 U.S.C. Section 3301 et

seq.) for the current calendar year; or

(2) an employing unit that the Federal Unemployment Tax Act (26

U.S.C. Section 3301 et seq.) requires to be an employer under

this subtitle as a condition for approval of this subtitle for

full tax credit against the tax imposed by the Federal

Unemployment Tax Act.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.026. STATE; POLITICAL SUBDIVISION. In this subtitle,

"employer" also means a state, a political subdivision of a

state, or an instrumentality of a state or political subdivision

of a state that is wholly owned by one or more states or

political subdivisions of one or more states.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.027. EMPLOYER OF DOMESTIC SERVICE WORKER. (a) In this

subtitle, "employer" also means an employing unit that paid cash

wages of $1,000 or more during a calendar quarter in the current

or preceding calendar year for domestic service in a private

home, local college club, or local chapter of a college

fraternity or sorority.

(b) An employer subject to this section who is not otherwise

considered an employer under this subtitle, annually, may report

quarterly wages and pay contributions. An employer who elects to

report wages and pay contributions under this section must make

the election not later than December 31 of the year before the

first calendar year reported.

and are required to be reported and paid by each employer not

later than January 31 with respect to wages for employment paid

in the preceding calendar year. For a rate taking effect under

Section 204.041(c) during the preceding calendar year, the

commission shall estimate the rate, subject to a correction when

a final computation is made as provided by Section 204.047(c).

(d) An employer who elects to report wages and pay contributions

annually shall file, on the request of the commission, reports at

other times as necessary to adjudicate a claim or to establish

wage credits.

(e) With respect to an employer who reports wages and pays

contributions annually under this section, any penalty or

interest imposed on the employer shall be computed in the same

manner as for other types of employment.

(f) An election by an employer under this section is not

revocable by the employer before the second anniversary of the

date of the election.

(g) An employer under this section is not an employer for wages

paid for a service other than domestic service unless the

employer is treated as an employer for that service under another

provision of this subtitle.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 2001, 77th Leg., ch. 487, Sec. 1, eff. Sept. 1,

2001.

Sec. 201.028. EMPLOYER OF FARM AND RANCH LABORER. (a) In this

subtitle, "employer" also means an employing unit that paid wages

for, or employed individuals in, farm and ranch labor in

accordance with this section, Section 201.047, or Section

204.009.

(b) In this section, an employer shall not be treated as an

employer for wages paid for a service other than service

performed by:

(1) a seasonal worker employed on a truck farm, orchard, or

vineyard;

(2) a farm and ranch laborer who is a migrant worker; or

(3) a seasonal worker who:

(A) works for a farmer, ranch operator, or labor agent who

employs migrant workers; and

(B) does the same work at the same time and location as the

migrant workers.

with respect to farm and ranch labor performed under Section

201.047(a)(4).

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.029. TEMPORARY HELP FIRM. For purposes of this

subtitle, a temporary help firm is the employer of an individual

employed by the firm as a temporary employee.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 9.23(b), eff. Sept.

1, 1995.

Sec. 201.030. STAFF LEASING SERVICES COMPANY. For the purposes

of this subtitle, "staff leasing services company" has the

meaning assigned by Section 91.001.

Added by Acts 1997, 75th Leg., ch. 1379, Sec. 20, eff. Sept. 1,

1997.

SUBCHAPTER D. DEFINITION OF EMPLOYMENT

Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT. In this

subtitle, "employment" means a service, including service in

interstate commerce, performed by an individual for wages or

under an express or implied contract of hire, unless it is shown

to the satisfaction of the commission that the individual's

performance of the service has been and will continue to be free

from control or direction under the contract and in fact.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.042. SERVICE OF DRIVER OR SALESMAN. In this subtitle,

"employment" includes service:

(1) as an agent-driver or commission-driver who delivers a meat

product, vegetable product, fruit product, bakery product,

laundry, dry cleaning, or beverage except milk, if:

(A) the service is performed for remuneration;

(B) the employment contract provides that the individual

personally performs substantially all of the service;

substantial investment in a facility used in the performance of

the service, other than in a facility for transportation; and

(D) the service is part of a continuing relationship with the

principal and is not a single transaction; or

(2) of a traveling or city salesman, except as provided in

Section 201.070, an agent-driver, or a commission-driver, who, on

a full-time basis, obtains for the individual's principal, except

for sideline sales activities for another person, orders from a

wholesaler, retailer, contractor, or operator of a hotel,

restaurant, or similar establishment for merchandise for resale

or supplies for use in the business's operation if:

(A) the employment contract provides that the individual

personally performs substantially all of the service;

(B) the individual does not have a substantial investment in a

facility used in the performance of the service, except a

facility for transportation; and

principal and is not a single transaction.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.043. LOCATION OF SERVICE. (a) In this subtitle,

"employment" includes service performed in this state or in and

outside this state if:

(1) the service is localized in this state; or

(2) the service is not localized in any state and some of the

service is performed in this state and:

(A) the base of operations is in this state, or there is no base

of operations, but the service is directed or controlled from

this state; or

(B) the base of operations or place from which service is

directed or controlled is not in a state in which a part of the

service is performed, and the residence of the person who

performs the service is in this state.

(b) In this subtitle, "employment" includes service performed

anywhere in the United States, including service performed

entirely outside this state, if:

(1) the service is not localized in a state;

(2) the service is performed by an individual who is one of a

class of employees who are required to travel outside this state

in performance of their duties; and

(3) the individual's base of operations is in this state or, if

there is no base of operations, the individual's service is

directed or controlled from this state.

entirely outside this state that is not included as employment

under Subsection (b) or Section 201.045 and for which

contributions are not required and paid under an unemployment

compensation law of another state if:

(1) the individual performing the service is a resident of this

state; and

(2) the commission approves the election of the employing unit

for which the individual performs the service that the entire

service of the individual is employment under this subtitle.

(d) In this subtitle, "employment" includes service performed

after 1971 outside the United States by a citizen of the United

States as an employee of an American employer, if:

(1) the service was not performed in a contiguous country with

which the United States has an agreement relating to unemployment

compensation;

(2) the service is not considered employment under Subsection

(b) or (c) or Section 201.044 or 201.045 or the parallel

provisions of another state's law; and

(3) the employer:

(A) has its principal place of business in the United States in

this state;

(B) does not have a place of business in the United States and

is:

(i) an individual who is a resident of this state;

(ii) a corporation that is organized under the laws of this

state; or

(iii) a partnership or a trust and the number of partners or

trustees who are residents of this state is greater than the

number who are residents of any one other state;

(D) has failed to elect coverage in any state and the individual

has filed a claim for benefits based on the service under the

laws of this state.

(e) In this section, "American employer" means:

(1) an individual who is a resident of the United States;

(2) a partnership, if two-thirds or more of the partners are

residents of the United States;

(3) a trust, if all of the trustees are residents of the United

States; or

(4) a corporation organized under the laws of the United States

or of a state.

(f) For the purposes of Subsection (b), service is localized in

a state if the service is performed entirely within the state or

the service performed outside the state is incidental to the

service performed in the state. In this section, a service that

is "incidental" includes a service that is temporary or that

consists of isolated transactions.

(g) If this state is the state of jurisdiction for services

covered as employment under Subsection (d), the employer shall so

notify its employees.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.044. SERVICE UNDER RECIPROCAL AGREEMENT. In this

subtitle, "employment" includes service that is performed by an

individual and that is covered by a reciprocal agreement under

this subtitle between the commission and the agency that

administers another state's or a federal unemployment

compensation law if:

(1) under the agreement all service performed by the individual

for an employing unit is considered to be performed entirely in

this state; and

(2) the commission approves an election of the employing unit

for whom the service is performed under which the entire service

of the individual is considered employment subject to this

subtitle during the period covered by the election.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.045. SERVICE ON VESSEL OR AIRCRAFT. In this subtitle,

"employment" includes service performed on or in connection with

an American vessel or aircraft if:

(1) the service is employment under Section 3306(c), Internal

Revenue Code of 1986 (26 U.S.C. Section 3306(c)); and

(2) the operating office from which the vessel or aircraft is

ordinarily and regularly directed and controlled is in this

state.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.046. EMPLOYMENT TO ASSIST EMPLOYEE OR AGENT. (a) An

individual employed to perform or to assist in performing the

work of an employee or agent of an employing unit is employed by

that employing unit for purposes of this subtitle if the

employing unit has actual or constructive knowledge of the work.

(b) Subsection (a) applies without regard to whether the

individual is hired or paid directly by the employing unit or by

the employee or agent.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.047. FARM AND RANCH LABOR AS EMPLOYMENT. (a) Farm and

ranch labor is employment for the purposes of this subtitle if

the labor:

(1) is performed by a seasonal worker employed on a truck farm,

orchard, or vineyard;

(2) is performed by a migrant worker;

(3) is performed by a seasonal worker who:

(A) is working for a farmer, ranch operator, or labor agent who

employs a migrant worker; and

(B) is doing the same work at the same time and location as the

migrant worker;

(4) performed after 1986 and the laborer is employed by an

employing unit that:

(A) pays wages in cash of $6,250 or more for the labor during a

calendar quarter in the calendar year in which the labor is

performed or the calendar year preceding that year; or

(B) employs three or more individuals in farm and ranch labor

for a portion of at least one day during at least 20 different

calendar weeks of the calendar year in which the labor is

performed or the calendar year preceding that year.

(b) Wages paid for services described in Subdivision (a)(1),

(2), or (3) are included in determining the wages paid for the

purpose of Subdivision (a)(4).

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1995, 74th Leg., ch. 76, Sec. 9.24, eff. Sept. 1,

1995.

Sec. 201.048. SERVICE FOR INDIAN TRIBE. Except as provided by

Sections 201.063 and 201.067, in this subtitle, "employment"

includes service performed in the employ of an Indian tribe if

the services are excluded from the definition of employment under

the Federal Unemployment Tax Act (26 U.S.C. Section 3301 et

seq.), as amended, solely because of Section 3306(c)(7) of that

Act.

Added by Acts 2001, 77th Leg., ch. 518, Sec. 2, eff. June 11,

2001.

SUBCHAPTER E. EXCEPTIONS TO EMPLOYMENT

Sec. 201.061. SERVICE ELIGIBLE UNDER ACT OF CONGRESS. In this

subtitle, "employment" does not include service for which

unemployment compensation is payable under an unemployment

compensation system established by an Act of Congress.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.062. SERVICE UNDER ARRANGEMENT WITH AGENCY. In this

subtitle, "employment" does not include service under an

arrangement that is between the commission and the agency that

administers another state's or a federal unemployment

compensation law and that considers the service for an employing

unit during the period covered by the employing unit's approved

election to be performed entirely within the agency's state or

under the federal law.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.063. CERTAIN GOVERNMENT SERVICE. (a) In this

subtitle, "employment" does not include:

(1) service in the employ of a political subdivision or of an

instrumentality of a political subdivision that is wholly owned

by one or more political subdivisions:

(A) as an elected official;

(B) as a member of a legislative body;

(D) as a temporary employee in case of fire, storm, snow,

earthquake, flood, or similar emergency; or

(E) in a position that is designated under law as a major

nontenured policy-making or advisory position or a policy-making

or advisory position that ordinarily does not require more than

eight hours of service each week;

(2) service in the employ of a foreign government, including

service as a consular or other officer or employee or as a

nondiplomatic representative;

(3) service in the employ of an instrumentality wholly owned by

a foreign government if:

(A) the service is similar to service performed in a foreign

country by an employee of the United States government or an

instrumentality of that government; and

(B) the United States secretary of state has certified to the

United States secretary of the treasury that the foreign

government grants an equivalent exemption for similar services

performed in the foreign country by an employee of the United

States government or an instrumentality of the United States

government;

(4) service in the employ of the United States government or an

instrumentality of the United States exempt under the United

States Constitution from the contributions imposed by this

subtitle; or

(5) service described by Subdivisions (1)-(3) performed in the

employ of an Indian tribe.

(b) To the extent the United States Congress permits a state to

require an instrumentality of the United States to make payments

into an unemployment fund under a state unemployment compensation

law, this subtitle applies to the instrumentality and to the

service performed for the instrumentality.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 2001, 77th Leg., ch. 518, Sec. 3, eff. June 11,

2001.

Sec. 201.064. DOMESTIC SERVICE. In this subtitle, "employment"

does not include domestic service in a private home, local

college club, or local chapter of a college fraternity or

sorority, except as performed for an employer under Section

201.027.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.065. SERVICE BY RELATIVE. In this subtitle,

"employment" does not include:

(1) service of an individual in the employ of the individual's

son, daughter, or spouse; or

(2) service of an individual younger than 21 years of age in the

employ of the individual's father or mother.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.066. RELIGIOUS SERVICE. In this subtitle, "employment"

does not include:

(1) service in the employ of:

(A) a church;

(B) a convention or association of churches; or

purposes and that is operated, supervised, controlled, or

principally supported by a church or a convention or association

of churches;

(2) service performed by an ordained, commissioned, or licensed

minister of a church in the exercise of the individual's

ministry; or

(3) service performed by a member of a religious order as

required by the order.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.067. REHABILITATIVE SERVICE; WORK RELIEF; EXCEPTION FOR

SERVICES PERFORMED BY CERTAIN BLIND INDIVIDUALS. (a) In this

subtitle, "employment" does not include service performed by an

individual who:

(1) receives rehabilitative work or paying work in the employ of

a facility that:

(A) is conducted to carry out a program of rehabilitation for

individuals whose earning capacity is impaired by:

(i) age;

(ii) physical impairment, other than blindness; or

(iii) mental deficiency or injury; or

(B) provides paying work for individuals who, because of their

impaired physical or mental capacity, cannot be readily absorbed

in the competitive labor market;

(2) is blind while the individual is in training at a sheltered

workshop operated by a charitable organization under a

rehabilitation program that includes:

(A) an individual plan for employment as required by 29 U.S.C.

Section 722, as amended;

(B) a timeline for completion of the training; and

(3) receives work relief or work training as a part of an

unemployment work-relief or work-training program assisted or

financed in whole or in part by a federal agency, an agency of a

state, a political subdivision of a state, or an Indian tribe.

(b) Notwithstanding Subsection (a), in this subtitle

"employment" includes service performed by an individual who is

blind and who, after training, is working for a sheltered

workshop operated by a charitable organization:

(1) temporarily while awaiting placement in a position of

employment in the competitive labor market; or

(2) permanently because the individual is unable to compete in

the competitive labor market.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 2001, 77th Leg., ch. 518, Sec. 4, eff. June 11,

2001; Acts 2001, 77th Leg., ch. 996, Sec. 1, eff. Sept. 1, 2001;

Acts 2003, 78th Leg., ch. 1276, Sec. 11.002, eff. Sept. 1, 2003.

Sec. 201.068. SERVICE IN HOSPITAL. In this subtitle,

"employment" does not include:

(1) service as a student nurse who is:

(A) employed by a hospital or a nurses' training school; and

(B) enrolled and regularly attending classes in a nurses'

training school chartered or approved under state law;

(2) service as an intern in the employ of a hospital by an

individual who has completed a four-year course in a medical

school chartered or approved under state law; or

(3) service in the employ of a hospital by a patient of the

hospital.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.069. SERVICE OF STUDENT. In this subtitle,

"employment" does not include:

(1) service performed in the employ of a school, college, or

university by a student who is enrolled and regularly attending

classes at the school, college, or university;

(2) service performed by an individual who is enrolled as a

student in a full-time program that combines academic instruction

with work experience and that is taken for credit at a nonprofit

or public educational institution normally maintaining a regular

faculty and curriculum and having a regularly organized body of

students in attendance at the place where its educational

activities are conducted, if the service is an integral part of

the program, and the institution has so certified to the

employing unit, except:

(A) service performed in a program established for an employer

or a group of employers;

(B) service in an apprenticeship training program; or

(3) service by a student in the employ of an organized camp if:

(A) the camp:

(i) did not operate for more than seven months in the current

calendar year and did not operate for more than seven months in

the preceding calendar year; or

(ii) had average gross receipts for any six months in the

preceding calendar year that were not more than 33-1/3 percent of

its average gross receipts for the other six months in the

preceding calendar year; and

(B) the student performed services for the camp for fewer than

13 calendar weeks in the calendar year and the student:

(i) is enrolled as a full-time student at an educational

institution; or

(ii) is between academic terms or years and:

(a) the student was enrolled as a full-time student at an

educational institution for the preceding academic term or year;

and

(b) there is reasonable assurance that the student will be so

enrolled for the next academic term or year.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.070. SERVICE AS PRODUCT DEMONSTRATOR; SALESMAN. In

this subtitle, "employment" does not include:

(1) service by an individual as a product demonstrator if:

(A) the service is performed under a written contract between

the individual performing the service and a person whose

principal business is obtaining the service of a demonstrator for

a third person for product demonstration purposes; and

(B) in contract and in fact the individual:

(i) is not treated as an employee with respect to that service

for federal unemployment tax purposes;

(ii) is compensated for each demonstration or is compensated

based on factors that relate to the work performed;

(iii) determines the method of performing the service;

(iv) provides each vehicle used to perform the service;

(v) is responsible for the completion of a specific job and is

liable for failure to complete the job;

(vi) may accept or reject a job from a product demonstrator

business;

(vii) is free from control by the principal business as to where

the individual works;

(viii) controls solely opportunity for profit or loss; and

(ix) pays all expenses and operating costs, including fuel,

repairs, supplies, and motor vehicle insurance;

(2) service by an individual as a direct seller if:

(A) the individual is engaged in the business of:

(i) in-person sales of consumer products to a buyer on a

buy-sell basis, a deposit-commission basis, or a similar basis

for resale in a home or in a place other than, and not affiliated

with, a permanent retail establishment; or

(ii) sales of consumer products in a home or in a place other

than, and not affiliated with, a permanent retail establishment;

(B) substantially all remuneration for the service, whether in

cash or other form of payment, is directly related to sales or

other output, including the performance of the service, and not

to the number of hours worked; and

the individual and the person for whom the service is performed,

and the contract provides that the individual is not treated as

an employee with respect to the service for federal tax purposes;

(3) service performed by an individual at a trade market for a

wholesaler or sales representative of a wholesaler or

manufacturer of consumer goods under a written contract, or as a

salesman for a wholesaler of consumer goods, if the wholesaler or

sales representative maintains a regular or seasonal place of

business at a trade market facility in a municipality with a

population of more than 750,000.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.071. SERVICE AS INSURANCE AGENT. In this subtitle,

"employment" does not include service as an insurance agent for

which the only remuneration for the service is a commission.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.072. SERVICE AS REAL ESTATE BROKER. In this subtitle,

"employment" does not include:

(1) service performed by an individual as a real estate broker

or salesperson if:

(A) the individual engages in activity described by the

definition of " broker" in Section 1101.002, Occupations Code;

(B) the individual is licensed as a broker or salesperson by the

Texas Real Estate Commission;

cash or other form of payment, is directly related to sales or

other output, including the performance of the service, and not

to the number of hours worked; and

(D) the service is performed under a written contract between

the individual and the person for whom the service is performed,

and the contract provides that the individual is not treated as

an employee with respect to the service for federal tax purposes;

(2) service performed by an individual as an instructor of a

person licensed or seeking a license as a real estate broker or

salesperson if:

(A) the individual instructs in an educational program or course

approved by the Texas Real Estate Commission; and

(B) the service is performed under a written contract between

the individual and the person for whom the service is performed

and the contract provides that the individual is not treated as

an employee with respect to the service for federal tax purposes.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.788, eff.

Sept. 1, 2003.

Sec. 201.073. DELIVERY SERVICE; NEWSPAPER DELIVERY SERVICE. In

this subtitle, "employment" does not include:

(1) service performed for compensation by an individual for a

private for-profit delivery service if the individual:

(A) may accept or reject a job from the delivery service;

(B) is free from control by the delivery service as to when the

individual works;

factors relating to the work performed, including receipt of a

percentage of a rate schedule;

(D) controls solely the opportunity for profit or loss;

(E) pays all expenses and operating costs, including fuel,

repairs, supplies, and motor vehicle insurance;

(F) determines the method of performing the service, including

selection of routes and order of deliveries;

(G) is responsible for completion of a specific job and is

liable for failure to complete the job;

(H) enters into a contract that specifies the relationship of

the individual to the delivery service to be that of an

independent contractor and not an employee; and

(I) provides the vehicle used to perform the service; or

(2) service by an individual younger than 18 years of age in the

delivery or distribution of newspapers or shopping news, except

delivery or distribution to any location for subsequent delivery

or distribution.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1995, 74th Leg., ch. 705, Sec. 8, eff. Sept. 1,

1995.

Sec. 201.074. SERVICE BY INMATE. In this subtitle, "employment"

does not include service performed by an inmate of a custodial or

penal institution.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1999, 76th Leg., ch. 125, Sec. 1, eff. Sept. 1,

1999.

Sec. 201.075. SERVICE ON FISHING VESSEL. In this subtitle,

"employment" does not include service performed on a fishing

vessel normally having a crew of fewer than 10 members if:

(1) the crew member's payment is a share of the catch; and

(2) the service is not employment under the Federal Unemployment

Tax Act (26 U.S.C. Section 3301 et seq.)

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.076. INCLUDED AND EXCLUDED SERVICE IN PAY PERIOD. (a)

All of the service of an individual performed during a pay period

for a person employing the individual is employment if the

service performed during one-half or more of the period is

employment.

(b) None of the service of an individual performed during a pay

period for a person employing the individual is employment if the

service performed during more than one-half of the pay period is

not employment.

period by an individual for a person employing the individual

that is service that does not constitute employment under Section

201.061.

(d) In this section, "pay period" means the period, not to

exceed 31 consecutive days, for which a person employing an

individual ordinarily pays wages to the individual.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.077. SERVICE BY LANDMAN. In this subtitle,

"employment" does not include service performed for a private

for-profit person by an individual as a landman if:

(1) the individual is engaged primarily in negotiating for the

acquisition or divestiture of mineral rights or negotiating

business agreements that provide for the exploration for or

development of minerals;

(2) substantially all remuneration, paid in cash or otherwise,

for the performance of the service is directly related to the

completion by the individual of the specific, contracted-for

tasks, rather than to the number of hours worked by the

individual; and

(3) the service performed by the individual is performed under a

written contract between the individual and the person for whom

the service is performed that provides that the individual is to

be treated as an independent contractor and not as an employee

with respect to the service provided under the contract.

Added by Acts 1995, 74th Leg., ch. 76, Sec. 9.25(a), eff. Sept.

1, 1995.

Sec. 201.078. SERVICE BY NONRESIDENT ALIEN AGRICULTURAL WORKER.

In this subtitle, "employment" does not include service performed

by a nonresident alien during the period that the alien is

temporarily in the United States under an H2-A visa if the

service is not defined as employment under the Federal

Unemployment Tax Act (26 U.S.C. Section 3306(c)(19)).

Added by Acts 2003, 78th Leg., ch. 52, Sec. 1, eff. Sept. 1,

2003.

SUBCHAPTER F. DEFINITION OF WAGES

Sec. 201.081. GENERAL DEFINITION OF WAGES. In this subtitle,

"wages" means all remuneration for personal services, including:

(1) the cash value of remuneration paid in a medium other than

cash; and

(2) a gratuity received by an employee in the course of

employment to the extent that the gratuity is considered wages in

the computation of taxes under the Federal Unemployment Tax Act

(26 U.S.C. Section 3301 et seq.).

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Sec. 201.082. EXCEPTIONS TO WAGES. In this subtitle, "wages"

does not include:

(1) that part of the remuneration paid by an employer to an

individual for employment during a calendar year that exceeds

remuneration to the individual, excluding remuneration under

another subdivision of this section, by the employer, of $9,000;

(2) a payment, including an amount the employer pays for

insurance or an annuity or pays into a fund for the payment of

insurance or an annuity, that is made to or for an employee or

the employee's dependent under a plan the employer established

for employees generally, or a class of employees, including or

excluding the employee's dependents, for:

(A) retirement;

(B) sickness or accident disability;

sickness or accident disability; or

(D) expenses related to death;

(3) a payment made to an individual employee for retirement,

including an amount an employer pays for insurance or an annuity

or pays into a fund for the payment of insurance or an annuity;

(4) a payment for sickness or accident disability, or medical or

hospitalization expenses for sickness or accident disability, an

employer makes to or for an individual employee after the

expiration of six calendar months after the last calendar month

the employee worked for the employer;

(5) a payment made to or for an employee or the employee's

beneficiary:

(A) from or to a trust defined by Section 401(a), Internal

Revenue Code of 1986 (26 U.S.C. Section 401(a)), that is exempt

from tax under Section 501(a), Internal Revenue Code of 1986 (26

U.S.C. Section 501(a)), at the time of payment, unless the

payment is made to an employee of the trust as remuneration for

service as an employee and not as a beneficiary of the trust; or

(B) under or to an annuity plan that, at the time of the

payment, is a plan described by Section 403(a), Internal Revenue

Code of 1986 (26 U.S.C. Section 403(a));

(6) a tax an employer pays, without deduction from the

remuneration of the employee, that is imposed on the employee

under Section 3101, Internal Revenue Code of 1986 (26 U.S.C.

Section 3101);

(7) noncash remuneration paid to an employee for service not in

the course of the employer's business;

(8) a payment, except vacation or sick pay, made to an employee

after the month the employee is 65 years of age, if the employee

did not work for the employer in the period for which the payment

is made; or

(9) the part of remuneration from a single employer for services

in a calendar year that exceeds the amount applicable to the year

under Subdivision (1) for which contributions have been paid

under a state unemployment law.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1997, 75th Leg., ch. 94, Sec. 1, eff. Sept. 1,

1997.

SUBCHAPTER G. TOTAL AND PARTIAL UNEMPLOYMENT

Sec. 201.091. TOTAL AND PARTIAL UNEMPLOYMENT. (a) An

individual is totally unemployed in a benefit period during which

the individual does not perform services for wages in excess of

the greater of:

(1) $5; or

(2) 25 percent of the benefit amount.

(b) An individual is partially unemployed in a benefit period of

less than full-time work if the individual's wages payable for

that benefit period are less than the sum of:

(1) the benefit amount the individual would be entitled to

receive if the individual was totally unemployed; and

(2) the greater of:

(A) $5; or

(B) 25 percent of the benefit amount.

unemployed if the individual is:

(1) totally unemployed as defined by Subsection (a); or

(2) partially unemployed as defined by Subsection (b).

(d) Notwithstanding Subsection (b), an individual is not

partially unemployed for purposes of this subtitle for a benefit

period in which the individual's working hours are reduced by the

individual's employer as a result of misconduct connected with

the work on the part of the individual. Such limitation will be

effective for a maximum of four weeks from the effective date of

such a reduction in hours.

(e) For purposes of this subtitle, an individual is not

considered unemployed and is not eligible to receive benefits for

any benefit period during which the individual works the

individual's customary full-time hours, regardless of the amount

of wages the individual earns during the benefit period.

(f) For purposes of this subtitle, an individual who last worked

for a temporary help firm is not considered to be unemployed

until three business days have passed since the date the

individual's last assignment ended.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by Acts 1995, 74th Leg., ch. 76, Sec. 9.26(a), eff. Sept.

1, 1995; Acts 1997, 75th Leg., ch. 83, Sec. 1, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 1184, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

592, Sec. 1, eff. September 1, 2005.

SUBCHAPTER H. CONFORMITY WITH FEDERAL STATUTES

Sec. 201.101. CONFORMITY WITH FEDERAL STATUTES. If the United

States secretary of labor holds that a provision of this subtitle

does not conform with a federal statute, the commission may

administer this subtitle to conform with the federal statute

until the legislature meets in its next session and has an

opportunity to amend this subtitle.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!