If you’ve recently been fired and believe it was unjust or even illegal, you’re probably facing two urgent concerns: your rights and your income. In Texas, unemployment benefits can serve as a crucial financial safety net. But many wrongfully terminated workers are unsure whether they qualify—or what to do if their former employer contests their claim.
The good news: being fired doesn’t automatically disqualify you from unemployment benefits, even in cases where your employer claims it was “for cause.” And if your termination was wrongful, you may have additional legal remedies available.
This post explains how unemployment benefits work in Texas after a wrongful termination, what to expect during the claims process, and how to protect your rights along the way.
What Is Considered Wrongful Termination?
Texas is an at-will employment state, which means employers can generally terminate employees at any time and for almost any reason. However, it is illegal to fire an employee for reasons that violate:
- Anti-discrimination laws (e.g., based on race, gender, religion, disability, or age)
- Retaliation protections (e.g., for reporting harassment, discrimination, or workplace safety issues)
- Family and Medical Leave Act (FMLA) rights
- Whistleblower protections
- Breach of employment contract
If your firing falls into any of these categories, it could be considered wrongful termination, and you may be entitled to compensation through a separate legal claim.
But in the meantime, you may also be eligible for unemployment benefits, regardless of whether you pursue legal action.
Am I Eligible for Unemployment Benefits in Texas?
The Texas Workforce Commission (TWC) oversees unemployment benefits in the state. In general, to qualify for benefits, you must meet the following criteria:
- You lost your job through no fault of your own.
This includes layoffs, business closures, and many types of wrongful terminations. - You earned sufficient wages during your “base period” (usually the past 12–15 months).
- You are able, available, and actively seeking full-time work.
If your employer claims you were terminated “for cause,” that doesn’t necessarily disqualify you. The TWC will review both sides and determine if the reason for termination disqualifies you under the law.
When Can Termination Disqualify You?
Certain types of misconduct may prevent you from receiving unemployment benefits, such as:
- Theft or dishonesty
- Willful violation of company policy
- Harassment or violence
- Repeated and documented poor performance (after warnings)
However, your employer must prove misconduct occurred. Simply stating that you were fired “for cause” isn’t enough.
In cases of wrongful termination, the firing may not meet the legal threshold for misconduct—especially if the employer acted in retaliation or discrimination. If so, you may still qualify for benefits.
What If My Employer Disputes My Claim?
It’s not uncommon for employers to contest unemployment claims—especially if they fear it could support a future wrongful termination lawsuit. But you still have the right to:
- Present your side of the story
- Submit evidence, such as emails, evaluations, or witness statements
- Appeal the denial, if your initial claim is rejected
The TWC provides an appeals process where you can request a hearing, during which both you and your former employer can present evidence.
Tip: If your employer’s reason for termination keeps changing or seems vague, that inconsistency may work in your favor during the appeal.
How to Strengthen Your Claim
If you believe you were wrongfully terminated, take these steps to protect your rights and support your unemployment benefits claim:
- Apply as soon as possible.
Delays can cost you benefits. Apply through the TWC’s website or by phone. - Be honest and clear about why you were let go.
Don’t say you “quit” unless you actually resigned. If you were forced out, explain the circumstances. - Gather documentation.
Save any termination letters, emails, reviews, or written complaints. This may help if your employer contests your claim. - Keep applying for jobs.
The TWC requires you to prove you’re actively seeking work. Keep records of job applications and contacts.
Can I File a Lawsuit and Still Receive Benefits?
Yes. You can pursue a wrongful termination claim and still collect unemployment benefits. These are separate legal processes:
- Unemployment benefits provide temporary financial support while you’re out of work.
- Wrongful termination lawsuits seek compensation for damages related to illegal firing, such as lost wages, emotional distress, and punitive damages.
Receiving benefits does not prevent you from suing your employer. In fact, the information gathered during your unemployment case may even support your wrongful termination lawsuit.
Final Thoughts
Being wrongfully terminated is stressful enough without the added pressure of financial uncertainty. The good news is that you may be eligible for unemployment benefits even if your employer disagrees—and you have rights, whether your termination was unfair, discriminatory, or retaliatory.
If you’re unsure about how to proceed, speaking with an employment attorney can help you understand both your short-term options (like unemployment benefits) and your long-term rights (like a legal claim for wrongful termination).
You deserve support during this transition—and legal protection if your employer crossed the line. We recommend wrongful termination lawyers Dallas.