The bill amends the Texas Labor Code to establish a new maximum amount of unemployment benefits payable to individuals during a benefit year, based on a sliding scale tied 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. 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 not exceeding 6.5% to 27 times for rates between 9.6% and 10%.

Additionally, the bill amends Section 215.043(a) to reference the new Section 207.0055 instead of the repealed Section 207.005, which is also removed from the Labor Code. The changes will apply only to claims for unemployment compensation benefits filed on or after the effective date of January 1, 2026, ensuring that claims filed before this date will 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)