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Someone else answered a similar question, but I don't think their answer was correct. I hope this works - I have a tel interview w/EDD today and this is one of the issues. This information that I located was found at http://www.edd.ca.gov/UIBDG/Total_and_Partial_Unemployment_TPU_5.htm#Wages(Look at section A 2 within this section) Section 1279 If a claimant is unemployed, as defined above, but he/she has earnings allocated to a week claimed, and is otherwise eligible, the amount of benefits payable is calculated according to the provisions of Section 1279 of the UI Code. This section provides, in pertinent part: "(a) Each individual eligible under this chapter who is unemployed in any week shall be paid with respect to that week an unemployment compensation amount less the smaller of the following: (1) The amount of wages in excess of twenty-five dollars ($25) payable to him or her for services rendered during that week. (2) The amount of wages in excess of 25 percent of the amount of wages payable to him or her for services rendered during that week. (b) The benefit payment, if not a multiple of one dollar ($1), shall be computed to the next higher multiple of one dollar ($1)." This means that the first $25 or 25 percent (which is greater) of the wages allocated to a week will be disregarded. The amount remaining (i.e., earnings over $25 or 75 percent of the earnings, whichever is smaller) is deducted from the claimant's weekly benefit amount. If the deductible amount equals or exceeds the WBA, Section 1279 would not apply since the claimant would not be unemployed within the meaning of Section 1252. Good luck!

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