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  1. #1
    Join Date
    Dec 2013
    Posts
    1

    Default Past Settlement Affecting Current Filing for Benefits

    My question involves unemployment benefits for the state of: TEXAS

    OK LETS SEE IF I CAN MAKE THIS SIMPLE

    I worked for a company for over 3 years (2008-2011)
    ... Company was illegaly taking a portion of my tips and giving it to management
    after quitting due to shorting weekly hours i filed for benefits and was awarded them.
    ... got regular benefits then i moved on to Tier 2-3-4 etc..
    about that same time i decided to talk to an Attorney that delt with illegal tip pools etc...
    ... but then i decided to first contact corporate to inform them of the forced tip out issue and see if i could settle it myself.
    after many talks they did settle with me ... the settlement was partial on W2 and the rest on 1099
    ... the W2 was listed as back wages etc ...
    but IN REALITY it was NOT wages paid by the company but hard earned TIPS that i had to kick back.
    ... either way it was listed as back wages on settlement ... Now remember this whole time im still collecting benefits

    ** FAST FORWARD TO NOW

    I was employed for just over a year Sept 2012 to Oct 2013 and was "let go" with no reason other than:
    WE ARE GOING IN A DIFFERENT DIRECTION
    so I decided to file for benefits even though my pay was not much and i knew the past QUARTERS would not show much income,
    but when i got my papers from the Workforce Commission, guess what showed up in the last quarter box?
    ... it was THE PREVIOUS EMPLOYER, the one that i settled with on Feb 2012
    Apparenty since that W2 part of the settlement was considered back wages (EVEN THOUGH THEY ARE REALLY NOT)
    and all taxes were taken out including payroll, i guess it showed up somehow as a previous employer when i recently filed for benefits.
    But im confused because in reality it was a settlement no "wages earned" per se

    Ok so I just got a call today from the Texas Workforce Commission as they have questions about my benefit claim
    and my mind been racing thinking about all this and if im gonna have to pay back money or if ill get denied or in trouble etc...
    so i been researching the hell out of this and need to know some answers.

    Like:
    since settlement was paid in lump sum will that affect me having to pay back previous benefits
    since i was getting benefits at same time as settlement how could that affect me.

    NOW here is what i cant find the answer to,
    ... Since that W2 settlement with all proper taxes taken out showed up in last quarter box when i file for benefits last month NOV.
    will that STILL COUNT towards my benefit amount? I mean it showed up for a reason?
    I see this as a possible positive since that settlement amount shot up my weekly benefit amount, but i also see some downside?

    any answers and thoughts much appreciated, thanks

    Dan

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Past Settlement Affecting Current Filing for Benefits

    I'm sure the experts will respond and correct me if I'm wrong, but the only thing which comes to mind is "fraud".

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Past Settlement Affecting Current Filing for Benefits

    Quote Quoting jcorral2
    View Post
    after quitting due to shorting weekly hours i filed for benefits and was awarded them....

    after many talks they did settle with me ... the settlement was partial on W2 and the rest on 1099
    ... the W2 was listed as back wages etc ...
    but IN REALITY it was NOT wages paid by the company but hard earned TIPS that i had to kick back.
    You have told us that accused them of two things: Shorting your hours and skimming your tips. Your settlement appears to reflect exactly that - compensation for the shorted hours on a W-2, and compensation for the tips on a 1099.

    Did you read your settlement agreement? How did it characterize the compensation you were to receive?
    Quote Quoting jcorral2
    Ok so I just got a call today from the Texas Workforce Commission as they have questions about my benefit claim...
    As in, "Call us back to discuss your claim"? You haven't actually spoken with them yet? You will need to explain and document the circumstances so that they know that this is not new, unreported income from a current employer. If you fail to communicate with them, you can expect them to infer that you deliberately failed to report income.

  4. #4
    Join Date
    Mar 2012
    Posts
    1,360

    Default Re: Past Settlement Affecting Current Filing for Benefits

    Here's some case law on the topic http://scholar.google.com/scholar_ca...en&as_sdt=4,44

    However, in your case it doesn't really apply to you because your backpay was from a period prior to your even becoming unemployed. So, I think you're in a much better position.

    Tips are wages though. Had the employer not been skimming, those tips would have been reportable by you as income when you earned them. You just got them after the fact because you persued the matter.

    Also, it was properly reported. Wages are reported at the time they are paid. Happens on a smaller scale all the time. You work in Dec, and get paid on Jan 2. The wages will show in the the Jan - Mar quarter. In your case, it was much longer than that.

    I don't think you did anything wrong, but you can see why TWC might think that, and you might even have a tough time convincing them. Just get your paperwork together and work through the process. This court case is on your side.

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