On June 20, 2025, Governor Greg Abbott signed House Bill (HB) 3699 into law, changing how Texas defines “last work” and “person for whom the claimant last worked” for initial unemployment claims; the title highlights the bill’s core change to the “last work” rule.
This update applies to employers involved in initial unemployment claims filed with the Texas Workforce Commission (TWC) and takes effect on January 1, 2026.
For claims filed on or after that date, the law removes the prior 30-hours-in-a-week test and generally ties “last work” to the Texas-defined employer for whom the claimant last worked, unless state or federal law provides otherwise; claims filed before January 1, 2026, remain governed by prior law.
What Employers Need to Do
- Review separation records and unemployment-response procedures before January 1, 2026, because the amended rule applies prospectively to initial claims filed with TWC on or after that date.
- Confirm who receives and responds to TWC notices involving short-term, casual, or low-hour workers, because the amended statute removes the prior 30-hour threshold from the “last work” analysis.
Overview
- HB 3699 amends Texas Labor Code Section 208.002(a) only in connection with an initial claim under the unemployment compensation system.
- The amendment removes the prior 30-hours-in-a-week rule that could determine who counted as the claimant’s “last work” employer for an initial claim.
- Under the new default rule, “last work” refers to the employer defined by Subchapter C, Chapter 201 for whom the claimant last worked, unless state or federal law provides otherwise.
- The law applies only to claims filed with TWC on or after January 1, 2026; earlier-filed claims continue under the prior statute.
Why This Matters
This change should make the statutory “last work” rule for initial claims more straightforward by removing the prior 30-hour threshold from the definition.
It may also affect employers that use short-term, casual, or low-hour labor, because a claimant’s most recent work may now matter even if that work did not meet the old 30-hour benchmark.
Key Risks for Employers
- Notice and response risk: Employers may receive “last employer” notices or factfinding requests in situations involving short hours, because the amended statute no longer uses the 30-hour threshold in the initial-claim definition.
- Documentation and timing risk: Employers may face avoidable protest or charge issues if separation dates, last day worked, and reasons for separation are not documented clearly before the new rule applies to TWC claims filed on or after January 1, 2026.
Additional Information
HB 3699 also removes prior language that referred to an employer defined “by the unemployment law of any other state” from this definition section, which may matter in some multistate claim scenarios.
Source Reference
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