[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR549.2]

[Page 266-267]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 549_REQUIREMENTS OF A ``BONA FIDE PROFIT-SHARING PLAN OR TRUST''
--Table of Contents
 
Sec. 549.2  Disqualifying provisions.

    No plan or trust which contains any one of the following provisions 
shall be deemed to meet the requirements of a bona fide profit-sharing 
plan or trust under section 7(e)(3)(b) of the Act:
    (a) If the share of any individual employee is determined in 
substance on the basis of attendance, quality or quantity of work, rate 
of production, or efficiency;
    (b) If the amount to be paid periodically by the employer into the 
fund or trust to be distributed to the employees is a fixed sum;
    (c) If periodic payments of minimum amounts to the employees are 
guaranteed by the employer;
    (d) If any individual employee's share, by the terms of the plan or 
trust, is set at a predetermined fixed sum or is so limited as to 
provide in effect for the payment of a fixed sum, or

[[Page 267]]

is limited to or set at a predetermined specified rate per hour or other 
unit of work or worktime;
    (e) If the employer's contributions or allocations to the fund or 
trust to be distributed to the employees are based on factors other than 
profits such as hours of work, production, efficiency, sales or savings 
in cost.