Can an employer tell you he is selling his company and to either go work for the new company or quit?

My boss told us late Friday evening that he is selling his company and we can either report to work at the company he sold to this Monday (tomorrow morning) or quit. I have no clue what I am going to be doing at this other place etc. He states I am being laid off but have option to work for this other company. I want to see how this would effect me collecting unemployment insurance if any? Located in CA. Thank you.

This company is out of business & my old employer now reports to work for the company whom he sold the business to. Friday was the business last day and we did not recieve our last paycheck.

yes he can tell you that. if you quit you won't get unemployment.

I'm not sure it would qualify as being laid off since the company isn't out of business, but merely exchanging owners.

Information about unemployment in California:
http://www.edd.ca.gov/fleclaim.htm

Has your boss paid into the unemployment insurance fund? Employers finance the UI program by tax contributions.

Eligibility for UI:
http://www.edd.ca.gov/uirep/uimer.htm

However, it is up to the new owners (not the old owner) as to whether they want to keep all the same people or if they want to lay them off.

Whatever you do, DON'T QUIT!!

Well he's got you on the unemployment I think. I don't think there is any way you can draw since you still have a job with the owner of your company but I could be wrong

Of course he can - it's his company. What did you think, he has to ask your permission to sell it?

If you quit, you won't get unemployment. If you are laid off, you will. If you have the option to go to work for the other company but turn it down, you will most likely be turned down for unemployment.