The distinction is Salary vs. Hourly, or more specifically, Exempt vs. Non-Exempt (Software Engineers / Founders are definitely Exempt, which mandates that they

The distinction is Salary vs. Hourly, or more specifically, Exempt vs. Non-Exempt (Software Engineers / Founders are definitely Exempt, which mandates that they're paid at least 2x the minimum wage in California). The difference between the two: http://career-advice.monster.com/salary-benefits/salary-information/whats-the-difference-between-exempt/article.aspx http://career-advice.monster.com/salary-benefits/salary-info... And California-specific regulations: http://www.calchamber.com/california-employment-law/Pages/exempt-nonexempt-employees.aspx http://www.calchamber.com/california-employment-law/Pages/ex...