HEC!!! or any California HR types--I have a question. One of our exempt employees took a day off last week, but worked a full day Saturday so he put in a 40-hour week. The Head Office wants him to take his day as Paid Time Off, thus using up a vacation day, and the Saturday is considered by them just extra time that salaried employees sometimes have to work (I worked on the Saturday, for example, and won't get overtime for it, since I'm also exempt). This seems wrong to me, but I can't find anything concrete to back me up.
I'd strongly suggest you research CA overtime laws. You both may be entitled to compensation despite being described as exempt. I don't know if the Fed tweaks had any impact, but before those went through, a friend of mine on a salaried job was able to prove he was supposed to get some kind of overtime pay for his extra hours. They gave him extra comp time.