
Ask HN: Does Facebook only paying $1 salary break minimum wage rules? - secfirstmd
Having a debate over coffee with someone on this today and was wondering. In theory, does Facebook (and others company&#x27;s who do this with key people) only paying Mark Zuckerberg a $1 salary break minimum wage rules?
======
dalke
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_executi...](http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.pdf))
. 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_executi...](http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.htm)
.

However, regarding Zuckerberg specifically, again see
[http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi...](http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.htm)
:

> 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
$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)

------
sehr
[http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executi...](http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.pdf)

 _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
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.

------
secfirstmd
Thanks For Everyone's Responses. I wanted to make sure I don't get myself in
trouble when I become a trillionare. :)

