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All profit-sharing plans must have a formula under which contributions are allocated to participants' accounts. Elliott Knitwear Co. has a profit-sharing plan for its 10 employees. Three of the employees are highly compensated and receive annual bonuses. The other seven are hourly employees who receive overtime pay periodically. Which of the following provisions would be considered discriminatory in the company's plan allocation formula?
A. the plan defines compensation to include base salaries and hourly pay only
B. the plan defines compensation to include bonuses, but not overtime pay
C. the plan provides a higher rate of allocations for employees who have more years of service
D. the plan provides a higher rate of allocations for employees whose compensation is above an "integration level"
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