The bill amends the Texas Labor Code to establish a new maximum amount of unemployment benefits that can be paid to individuals during a benefit year, based on a sliding scale linked to the state average unemployment rate. A new section, 207.0055, is added, defining the "state average unemployment rate" as the average seasonally adjusted unemployment rate published by the United States Bureau of Labor Statistics for the most recent completed calendar year quarter prior to the start of an individual's benefit year. The maximum benefits are determined by multiplying the individual's benefit amount by a factor that varies according to the unemployment rate, ranging from 20 times the benefit amount for rates up to 6.5% to 27 times for rates between 9.6% and 10%.

Additionally, the bill repeals the existing Section 207.005 and updates Section 215.043(a) to reference the new Section 207.0055 instead. The changes will only apply to claims for unemployment compensation benefits filed on or after the effective date of the Act, which is set for January 1, 2026. Claims filed before this date will continue to be governed by the previous law.

Statutes affected:
Introduced: Labor Code 215.043, Labor Code 207.005 (Labor Code 215, Labor Code 207)
House Committee Report: Labor Code 215.043, Labor Code 207.005 (Labor Code 215, Labor Code 207)