Hourly Employee Incentive or Profit Sharing Plan

JohnWV67

I have been asked to develop an incentive/profit sharing plan hybrid for a production facility with approximately 75 employees to be paid either monthly or quarterly. So far, I have determined that any payments will have to be adjusted for overtime per FLSA. Our Managers want to include accidents and attendance into the equation. I suspect I can handle attendance by converting payouts to an hourly amount and only pay for hours actually worked. Because of workers' compensation non-discrimination requirements I will have to be careful in plan structure if we reduce payouts for adverse safety events. So far, we are thinking about establishing a pool of money for the payout based on different profit levels. There would be a reduction for accident occurrences. I am seeking advice and/or practical experience tips. Thanks!