profit sharing

noun

: a system or process under which employees receive a part of the profits of an industrial or commercial enterprise

Examples of profit sharing in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Only your employer's profit sharing, safe harbor and matching contribution must go into the traditional 401(k) account. David Rae, Forbes.com, 19 May 2025 Since its founding in 2020, the fair has embraced a cooperative business model, initially profit sharing with founding galleries. Tanya Mohn, New York Times, 2 May 2025 Before it was implemented, Reich ran the idea of profit sharing by his father, who has written extensively on the subject. Jesse David Fox, Vulture, 2 June 2025 The smart contract should clearly define rights—such as profit sharing and decision-making authority. 4. Andy J. Semotiuk, Forbes.com, 5 May 2025 See All Example Sentences for profit sharing

Word History

First Known Use

1872, in the meaning defined above

Time Traveler
The first known use of profit sharing was in 1872

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Cite this Entry

“Profit sharing.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/profit%20sharing. Accessed 7 Jul. 2025.

Legal Definition

profit sharing

noun
profit shar·​ing
: a plan under which employees receive a part of the profits of an enterprise

More from Merriam-Webster on profit sharing

Last Updated: - Updated example sentences
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