Indiana auto parts manufacturer pays $603,953 in overtime wage recovery
Federal labor officials recover $603,953 in back wages for 829 workers after finding overtime pay errors at an Indianapolis-area auto parts manufacturer. The case centers on the exclusion of a non-discretionary attendance bonus from overtime calculations, a practice that violates the Fair Labor Standards Act.
Highlights
- Toa (USA) LLC must pay $603,953 in back wages to 829 workers after failing to include a non-discretionary attendance bonus in overtime calculations.
- The U.S. Department of Labor found the company's overtime pay practices breached the Fair Labor Standards Act for hourly employees during relevant workweeks.
- Federal scrutiny of wage compliance intensifies in manufacturing, with Toa (USA) LLC's Indiana operations supplying Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America.
Investigation finds overtime calculation failures
As reported by U.S. Department of Labor, citing the Wage and Hour Division, investigators find that Toa (USA) LLC failed to properly calculate overtime wages for hourly employees during applicable workweeks.The agency says the company did not include a non-discretionary attendance bonus when determining overtime pay, resulting in back wage recoveries totaling $603,953 for 829 workers. The Labor Department says the omission breaches the overtime provisions of the Fair Labor Standards Act.
Juan Herrera, district director for the Wage and Hour Division in Indianapolis, says employers must include commissions, differentials, certain bonuses, stipends and other incentives when calculating overtime pay. He also urges employers that offer multiple forms of incentive compensation to review compliance materials and seek guidance on overtime requirements when needed.
Auto supply operations in Indiana affected
Toa (USA) LLC operates manufacturing facilities in Mooresville and serves as a primary supplier of body structure and suspension components for Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America.The recovery highlights continued federal scrutiny of wage practices in the manufacturing sector, where bonus and incentive structures can affect overtime obligations. The Wage and Hour Division says employees and employers can contact its toll-free helpline for compliance assistance and questions about pay requirements.
Our earlier coverage of executive pay trends at South Africa’s JSE Top 200 companies highlighted how variable compensation is rising much faster than base pay, with short- and long-term incentives surging for CEOs and CFOs. We also noted the growing governance push, including new Companies Act requirements to disclose pay ratios and the introduction of binding shareholder votes on remuneration reports.
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