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How are the $1 salaries that CEOs sometimes take considered legal?
Even under the executive exemption, see Exemption for Executive Employees Under the Fair Labor Standards Act (FLSA) Section 13(a)(1) as defined by Regulations, 29 CFR Part 541, it seems that a minimum compensation is required. To qualify for the executive employee exemption, all of the following tests must be met: The employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $455 per week... etc. There is one other possibility under FLSA Section 13(a)(1), as a "bona fide exempt executive". Exemption of Business Owners   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.