Our company gives 3 days per year of sick leave. We are required to give 2 weeks notice to use any vacation time (so this prevents us from using it when we are sick and have no more sick leave). My question is this: If an exempt-salaried employee is out sick and has exhausted their 3 days of sick leave, should they be docked?

I need to know what defines a bona-fide plan according to California.

Federal DOL has opined that a "bona fide" sick pay plan for Exempt Salaried employees has at least 5 days annually. This was an opinion letter (not the most authoritative of statement mechanisms legally) and the letter was carefully worded. The letter did not say that it was impossible for a bona fide sick pay plan to give less then 5 days annual, just that federal DOL had never seen one that they considered to be bona fide. I will include a pointer to one of the opinion letter and the key quote.
http://www.dol.gov/esa/whd/opinion/FLSA/2006/2006_09_14_32_FLSA.htm

Given the fact-specific nature of the inquiry, there is no bright-line test articulating how many days and how short a waiting period are required for a plan to be bona fide. The Wage and Hour Division, however, previously has approved leave plans that allow for at least 5 days of sick leave per year as bona fide under the regulations.

Regarding CA rules, the following is what the CA-DLSE manual says.

51.6.17 Bona Fide Defined: 1. Made or carried out in good faith; sincere: a bona fide offer. 2. Authentic; genuine: a bona fide Rembrandt. (AMERICAN HERITAGE DICTIONARY). There is no definition of the term “bona fide sickness or disability plans, policies or practices” contained in the federal regulations. In addition, research has disclosed that the U.S. Department of Labor has never defined or delimited the term in Opinion Letters or otherwise. DLSE will judge each sickness or disability plan on a case-by-case basis.