ESD question: Do I need to report PTO payout after termination? Plus issues with taking community college classes
My husband just got terminated from his job (completely his fault, he admits it) and his unemployment claim is currently in adjudication. We're having a nightmare trying to get through to ESD on the phone and have two urgent questions I'm hoping someone here can answer: 1. He received a final paycheck that included all his unused PTO (around $1,875). When filing his weekly claim, does this PTO payout need to be reported as income? It was earned during employment but paid out after termination. 2. He has a potential job opportunity through a friend's company, but they want him to take some courses at the local community college first to gain needed skills. Will taking these classes affect his unemployment benefits? Does this count as being in school and disqualify him, or can it be counted as part of his required job search activities? We're completely lost with the ESD system and any help would be so appreciated!
18 comments

Sean O'Donnell
For your first question, YES, he absolutely needs to report the PTO payout. ESD considers vacation/PTO payouts as earnings during the week they're paid, not when they were earned. They'll reduce his benefit amount for that week accordingly. If the payout is larger than his weekly benefit amount, he won't get benefits for that week, but it won't affect future weeks. For the community college classes, it depends on the time commitment. If the classes don't prevent him from accepting full-time work, they shouldn't disqualify him. He should definitely report this on his weekly claim in the section that asks if he's in school or training. He can also see about getting the classes approved as Commissioner Approved Training (CAT) which would exempt him from job search requirements while he's in the program.
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Anastasia Sokolov
•Thank you so much for this clear explanation! I'll make sure he reports the PTO payout. The classes would only be 2 afternoons a week, so they wouldn't prevent him from working full-time. Is the Commissioner Approved Training something we need to apply for separately? Or do we just mention it when filing the weekly claim?
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Zara Ahmed
i had something similar happen last year and didn't report my pto payout and OMG it was a HUGE hassle... they flagged my account for overpayment and i had to pay back benefits plus deal with adjudication all over again... dont make the same mistake i did!!!!
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Anastasia Sokolov
•Oh no! That sounds awful. Thanks for the warning - he'll definitely report it now. Did it take a long time to resolve the overpayment issue?
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Zara Ahmed
•took almost 3 months and they took like $75 extra for some kind of penalty!! plus all those phone calls trying to get it sorted... nightmare!!!!
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StarStrider
Regarding the community college classes: this is actually a great opportunity that shouldn't negatively impact his unemployment. If these classes are specifically tied to improving employment opportunities (which they clearly are since a potential employer is requesting them), he should: 1. Report them on his weekly claim form where it asks about school/training 2. Gather documentation from the potential employer stating these classes are required for employment consideration 3. Consider applying for Training Benefits or Commissioner Approved Training (this requires a separate application through ESD - not just mentioning it on weekly claims) The classes can definitely count as job search activities if they're directly related to obtaining employment. He should keep detailed records of all communication with the potential employer about these requirements. As for the PTO payout - yes, it must be reported as earnings for the week received, not when earned. This is a common misunderstanding that leads to overpayment issues.
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Luca Esposito
•This is totally wrong! If you're in school ESD will disqualify you because you're not available for work! Happened to my cousin last year when he took ONE class at Bellevue College. The whole system is designed to deny benefits any way they can. Don't trust these people telling you it's fine.
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StarStrider
•That's not entirely accurate. The key factor is whether the schooling prevents you from accepting full-time work. Part-time classes that don't interfere with availability for employment generally don't disqualify you. Additionally, Training Benefits and Commissioner Approved Training are specific programs designed to allow claimants to attend school while receiving benefits. Your cousin's situation may have had other factors involved. The regulations are quite clear on this - it's about availability for work, not simply being enrolled in classes.
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Nia Thompson
Have you tried calling Claimyr? When my claim was stuck in adjudication for weeks and I couldn't get through, I used their service (claimyr.com) and got connected to an ESD rep in about 20 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 showing how it works. Honestly, for specific questions like yours, especially when adjudication is involved, speaking directly to ESD is probably your best bet since they can look at your actual claim details.
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Anastasia Sokolov
•I hadn't heard of that service! We'll definitely check it out. You're right that we probably need specific answers for our situation, especially with the adjudication already happening. Thanks for the suggestion!
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Mateo Rodriguez
Speaking from experience with ESD and PTO payouts - they DO count as earnings but here's the important thing: they only affect the week they were paid in. So if his PTO payout was $1,875 and his weekly benefit amount would normally be $850, he'll probably not receive benefits just for that one week. Then benefits would resume normally after that. For the school thing, in my experience, ESD is mostly concerned with whether taking classes prevents you from accepting full-time work. If he can still work around the class schedule, he should be okay but MUST report it on his weekly claim. I think it's question #4 or #5 that asks if you're attending school or training.
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Aisha Abdullah
•^^^ this is the correct answer. PTO only affects one week, and he should definitely still file for that week even though he'll get reduced or no benefits. And yes school is fine as long as he'd quit school for a full-time job if offered one.
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Luca Esposito
So wait I'm confused about something... if he got fired for cause (his fault), why would he even qualify for unemployment? I thought you could only get benefits if you lost your job through no fault of your own? My brother got fired for being late too many times and ESD denied his claim completely.
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Sean O'Donnell
•It's not quite as black and white as that. ESD evaluates each case individually. Being fired for performance issues, inability to meet job requirements, or even some policy violations doesn't automatically disqualify someone. They look at whether the action was "misconduct" which has a specific definition in unemployment law. Things like intentional disregard of employer interests, deliberate violation of known rules, illegal activities, or repeated violations after warnings can be disqualifying misconduct. But simple performance issues, inability to meet standards, or isolated mistakes often don't rise to that level. That's why the claim is in adjudication - ESD is gathering information from both the employer and employee to make this determination.
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Anastasia Sokolov
•Yes, that's exactly right. His termination is being reviewed in adjudication. It was related to performance issues rather than deliberate misconduct, so we're hopeful he'll qualify, but we won't know until adjudication is complete. That's why these other questions are important to us right now.
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Aisha Abdullah
Just wanted to add something important about the school/training situation. If these classes are directly related to improving employability (which they clearly are), your husband should document everything. Keep emails from the potential employer stating the classes are required, save enrollment confirmations, etc. This documentation will be CRUCIAL if ESD ever questions his availability for work. Also, when he reports the classes on his weekly claim, there's usually a follow-up question asking if he would quit school for full-time work. The answer needs to be YES to avoid issues with unemployment eligibility.
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Anastasia Sokolov
•That's really helpful advice about documentation! I'll have him save all emails from the potential employer about the class requirements. And good to know about answering YES to quitting school for full-time work - I think that's where people might get tripped up.
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FireflyDreams
Just wanted to share my recent experience since it might help. I was in a similar situation last month - got terminated and had PTO payout confusion. Here's what I learned: definitely report that PTO payout on the weekly claim for the week you received it. I made the mistake of not reporting mine initially because I thought "I earned it while working" but ESD sees it as income received during unemployment. Had to correct it later which was a headache. For the community college classes - I actually did something similar. I was taking an Excel certification course (2 evenings per week) while on unemployment. As long as you can honestly say you'd drop the classes for a full-time job offer, you should be fine. Just be completely transparent about it on your weekly claims. One tip: if you do get approved for Commissioner Approved Training, it can actually be better than regular unemployment because you don't have to do job search activities while in the program. But the application process takes time, so don't wait if these classes are starting soon. Hope your husband's adjudication goes smoothly! Performance issues are often not considered disqualifying misconduct, so fingers crossed.
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