I work full-time as a salaried employee in California.

My employer informed the staff that there is no more funds. They gave us our pay and said, "for the pay period moving forward, we don't have money to pay any of you."

Question #1:
If they state that they can't pay, then our employee/employer relationships is over, right?

Question #2:
Does that qualify me for unemployment insurance benefits?

Thanks very much for any insight you may have.

If the employer cannot or will not continue to pay your salary, then technically your working relationship is over and you should qualify for unemployment benefits. You should go to your local unemployment office and file a claim immediately.