(a) The regulations in this part set forth the requirements of a
``bona fide profit-sharing plan or trust'' under section 7(e)(3)(b) of
the Fair Labor Standards Act of 1938, as amended (hereinafter called the
Act). In determining the total remuneration for employment which section
7(e) of the Act requires to be included in the regular rate at which an
employee is employed, it is not necessary to include any sums paid to or
on behalf of such employee, in recognition of services performed by him
during a given period, which are paid pursuant to a bona fide profit-
sharing plan or trust meeting the requirements set forth herein. In the
formulation of these regulations due regard has been given to the
factors and standards set forth in section 7(e)(3)(b) of the Act.
(b) The inclusion or exclusion from the regular rate of
contributions made by an employer pursuant to any plan or trust for
providing old age, retirement, life, accident or health insurance or
similar benefits for employees (regardless of whether the plan or trust
is financed out of profits) is governed by section 7(e)(4) of the Act,
the requirements of which are set forth in the Interpretative Bulletin
on Overtime Compensation, part 778, of this chapter, Secs. 778.214 and
778.215. However, where such a plan or trust is combined in a single
program (whether in one or more documents) with a plan or trust for
providing profit-sharing payments to employees, the profit-sharing
payments may be excluded from the regular rate if they meet the
requirements of the regulations in this part and the contributions made
by the employer for providing the benefits described in section 7(e)(4)
of the Act may be excluded from the regular rate if they meet the tests
set forth in the Interpretative Bulletin, part 778, of this chapter,
Secs. 778.214 and 778.215.
