Mulch over the hose, but leave a few spots visible so you can observe the moisture flow when the hose is on. I always install soaker hoses in my tomatoes and sweet corn before putting down grass clipping mulch. They become invaluable when summer turns dry.

I've also used the soaker hose over mulch, it works too. Although I think you may be able to water a bit less if the mulch is over the hose, since you won't lose as much to evaporation.

Thanks for the advise. I am no longer confused about the hose situation. This forum has always helped me alot and the answers come in promptly which is really helpful.
Helen