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Ask HN: Does Facebook only paying $1 salary break minimum wage rules?

• secfirstmd 13y ago
  Thanks For Everyone's Responses. I wanted to make sure I don't get myself in trouble when I become a trillionare. :)
• sehr 13y ago
  http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.pdf http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi... To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week So I suppose it's illegal, but I doubt anyone would seriously enforce it
• pedalpete 13y ago
  INAL, but I'm sure there is a clause for compensation rather than a dollar figure. He is being paid in a different medium (stock), and the value of that is greater in dollars than the work minimum. Bartering isn't illegal http://www.irs.gov/taxtopics/tc420.html http://www.irs.gov/taxtopics/tc420.html, so I doubt the executive compensation schemes are.
• deleted 13y ago
  [deleted]
• dalke 13y ago
  While there is an executive exemption, those executives are supposed to be making not less than $455/week in salary (http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.pdf http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi...) . As such, a $1/year symbolic salary is likely illegal. As http://www.laborlawtalk.com/archive/index.php/t-212858.html http://www.laborlawtalk.com/archive/index.php/t-212858.html points out, the Department of Labor doesn't get involved if this is the only issue. (It also suggests that a company pay the $455/week to be on the safe side.) Thus, a $1/year CEOs could sue. While most of those making $1/year receive a large non-salary compensation, and there is a special exception for "Highly Compensated Employees", those must be "paid total annual compensation of $100,000 or more (which must include at least $455 per week paid on a salary or fee basis)". Quote from http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.htm http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi... . However, regarding Zuckerberg specifically, again see http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.htm http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi... : > Under a special rule for business owners, an employee who owns at least a bona fide 20-percent equity interest in the enterprise in which employed, regardless of the type of business organization (e.g., corporation, partnership, or other), and who is actively engaged in its management, is considered a bona fide exempt executive. According to http://whoownsfacebook.com/ http://whoownsfacebook.com/ , Zuckerberg owns 28.2% of FB, so is a bona fide exempt executive.
• ahazred8ta 13y ago
  "Under a special rule for business owners, an employee who owns at least a bona fide 20-percent equity interest ... is considered a bona fide exempt executive." -- the fairpay document cited by /u/sehr (he is completely exempt from the minimum salary requirement, AND $1 IS NOT ILLEGAL)
• ahazred8ta 13y ago
  "Under a special rule for business owners, an employee who owns at least a bona fide 20-percent equity interest ... is considered a bona fide exempt executive." -- the fairpay document cited by /u/sehr (he is completely exempt from the minimum salary requirement, AND $1 IS NOT ILLEGAL)
• ahazred8ta 13y ago
  $1 is OK -- "Under a special rule for business owners, an employee who owns at least a bona fide 20-percent equity interest ... is considered a bona fide exempt executive." -- the fairpay document cited by /u/sehr (he is completely exempt from the minimum salary requirement, and $1 is not illegal)