Relating to eligibility for unemployment compensation for employees who leave the workplace due to sexual harassment.

SB 543 amends Texas unemployment law to allow workers who leave their jobs due to sexual harassment to qualify for benefits, provided they first reported the harassment to their employer, law enforcement, or filed a formal complaint with the EEOC or Texas Commission on Human Rights. The bill adds this as a specific exception to disqualification, requiring documented reporting before leaving the workplace. It applies only to unemployment claims filed on or after September 1, 2025, and does not affect claims filed earlier. This directly affects Texas employees experiencing workplace sexual harassment who follow the required reporting steps. The change updates eligibility criteria to recognize sexual harassment as a valid, urgent work-related reason for separation.