The way it works in California:
If you were laid off from a position you are eligible to file for Unemployment Insurance benefits. Your total “award amount” and the subsequent weekly payment amount is determined by a previous quarters’ earnings. Currently, 26 weeks is the first claim period; two 13 week extensions are available.
Every two weeks you will receive a “Claim Continuation Form”; qualifying questions are 1) were you too sick, or injured to work? (Y/N), 2) Was there any reason (other than sickness or injury) that you could not work? (Y/N), 3) Did you look for work? (Y/N), 4) Did you refuse any work? (Y/N), 5) Did you begin attending any kind of school or training? (Y/N), 6) Did you work, or earn any money WHETHER YOU WERE PAID OR NOT? (Y/N)
The State allows claimants to earn as much as they can, BUT they must report any, and all, earnings. If, in any given week, you earned more than you receive from UI it will be deducted from your weekly payment. i.e. $450/week is the maximum weekly payment allowed in California. If you earn more than that you will receive nothing from the State for the week worked; if you earned $400, you will receive $50. If you were unable to find work the second week you are again entitled to UI. The effect is that your claim is extended, or pushed back by every dollar you earn. The total amount awarded remains the same, but by virtue of earning some money you are prolonging the “safety net”. How one makes money is not a consideration; waiting tables, designing computer peripherals, or digging a ditch … it’s just money to the State (that they do not owe you)…
Generally when this occurs a telephone interview is arranged by a Employment Development Department agent. Questions like: 1) Are you still employed? 2) Do you expect to return to your employer, 3) Why are you no longer employed, etc., etc., etc. are asked.
Unemployment Insurance is not “welfare”. You are entitled to it by virtue of having already paid for it through your employers payroll deductions. Whether one opts to file a claim is their decision.