HB2760

Regular Session

Relating to judicial review of a Texas Workforce Commission decision in an unemployment compensation proceeding.

ModeratePlan for compliance

Low Cost

Effective:2025-06-20

Enforcing Agencies

Texas Workforce Commission • County Courts at Law • District Courts

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025
Compliance Deadline: Immediate. Any TWC administrative decision that becomes final on or after June 20, 2025, is subject to the new venue requirements. Appeals filed in the wrong court after this date face dismissal.
Agency Rulemaking: None anticipated. This is a statutory change to the Texas Labor Code governing judicial procedure; the TWC will not issue rules to clarify court jurisdiction. Clarification will occur through judicial dismissal orders.

Immediate Action Plan

1. Update SOPs Immediately: Revise internal legal procedures to remove any reference to filing appeals in Justice of the Peace courts.
2. Retain Counsel: Establish a relationship with outside employment litigation counsel prior to needing them, as the 14-day filing deadline allows no time for vendor onboarding.
3. Audit Pending Claims: Identify any TWC decisions currently in the "motion for rehearing" stage. If they finalize after June 20, you must be ready to file in the higher court.
4. Cost-Benefit Threshold: Set a new internal financial threshold for appeals. Given the increased legal costs, appealing low-dollar claims is no longer financially viable.

Operational Changes Required

Contracts

Third-Party Administrators (TPAs) & PEOs: Review service agreements with vendors like Equifax, Thomas & Company, or PEOs immediately. Most standard contracts cover administrative hearings but exclude judicial review.
Legal Hand-off: Confirm your TPA has a defined process to transfer files to outside counsel within the 14-day appeal window, as they likely cannot represent you in District Court.

Hiring/Training

Mandatory Legal Counsel: Corporate entities generally cannot appear *pro se* (without a lawyer) in District Courts or County Courts at Law. HR Directors can no longer handle these appeals personally. You must retain licensed litigation counsel.
HR Training: Train HR staff that the "informal" nature of TWC hearings does not apply to appeals. Evidence preservation (chain of custody, signed documents) is now critical for admissibility in District Court.

Reporting & Record-Keeping

Evidence Authentication: Ensure all termination notices, warnings, and handbook acknowledgments are signed and dated. In District Court, unauthenticated notes often admissible in TWC hearings will be excluded under the Texas Rules of Evidence.

Fees & Costs

Litigation Costs: Expect a significant increase in the cost of appealing a claim. District Court filing fees are higher than JP courts, and mandatory attorney fees will likely exceed the value of a single unemployment claim unless the tax rate impact is substantial.

Strategic Ambiguities & Considerations

The "Rural County" Trap: The statute specifies "County Court at Law." Many rural Texas counties do not have a statutory County Court at Law, but rather a "Constitutional County Court" presided over by the County Judge.

Risk: The law does not explicitly grant jurisdiction to Constitutional County Courts.
Guidance: In counties lacking a statutory County Court at Law, file exclusively in District Court. Do not risk a jurisdictional dismissal by filing in the Constitutional County Court.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsCourts Courts--county & Statutory Courts--district Labor Labor--unemployment Workforce Commission, Texas

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 2760

By: Villalobos

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law authorizes a party aggrieved by a final decision of the Texas Workforce Commission in an unemployment benefits dispute claim to seek judicial review in a court of competent jurisdiction, but the existing statute does not explicitly specify which courts are eligible. The bill author has informed the committee that this ambiguity has caused confusion and inconsistencies in where cases can be filed. H.B. 2760 seeks to address this issue by specifying where parties may seek judicial review of a final decision in an unemployment benefits dispute.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2760 amends the Labor Code to change the court in which a party aggrieved by a final decision of the Texas Workforce Commission (TWC) in a benefits dispute claim under the Texas Unemployment Compensation Act may bring an action to obtain judicial review of the decision against TWC from a court of competent jurisdiction to a county court at law or district court.

H.B. 2760 applies only to judicial review of a TWC decision that becomes final on or after the bill's effective date. Judicial review of a TWC decision that becomes final before the bill's effective date is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. Denise VillalobosRepublican · Primary Author

Senate Sponsor

Sen. Carol AlvaradoDemocrat · Primary Sponsor

Bill Text(with markup)

H.B. No. 2760

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to judicial review of a Texas Workforce Commission
	decision in an unemployment compensation proceeding.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 212.201(a), Labor Code, is amended to
	read as follows:
	(a) A party aggrieved by a final decision of the commission
	may obtain judicial review of the decision by bringing an action in
	a county court at law or district court [~~of competent jurisdiction~~]
	for review of the decision against the commission on or after the
	date on which the decision is final, and not later than the 14th day
	after that date.
	SECTION 2. The change in law made by this Act applies only
	to judicial review of a Texas Workforce Commission decision that
	becomes final on or after the effective date of this Act. Judicial
	review of a Texas Workforce Commission decision that becomes final
	before the effective date of this Act is governed by the law in
	effect immediately before the effective date of this Act, and the
	former law is continued in effect for that purpose.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 17, 2025

TO:	Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2760 by Villalobos (Relating to judicial review of a Texas Workforce Commission decision in an unemployment compensation proceeding.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 320 Texas Workforce Commission

LBB Staff:

JMc, RStu, JBel

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Frequently Asked Questions

Common questions about HB2760

What does Texas HB2760 do?

HB2760 mandates that all judicial reviews of Texas Workforce Commission (TWC) unemployment decisions must now be filed specifically in a statutory County Court at Law or District Court. This legislation effectively strips jurisdiction from Justice of the Peace courts and Constitutional County Courts, forcing all Texas employers to utilize higher courts with stricter rules of evidence and mandatory legal representation for corporate entities. Implementation Timeline Effective Date: June 20, 2025 Compliance Deadline: Immediate.

Who authored HB2760?

HB2760 was authored by Texas Representative Denise Villalobos during the Regular Session.

When was HB2760 signed into law?

HB2760 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB2760?

HB2760 is enforced by Texas Workforce Commission, County Courts at Law and District Courts.

How urgent is compliance with HB2760?

The compliance urgency for HB2760 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2760?

The cost impact of HB2760 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2760 address?

HB2760 addresses topics including courts, courts--county & statutory, courts--district, labor and labor--unemployment.

Legislative data provided by LegiScanLast updated: November 25, 2025

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