DOL Recovers $604K for 829 Indiana Auto Parts Workers Denied Overtime
Federal investigators found Toa (USA) LLC failed to include attendance bonuses when calculating overtime, violating the Fair Labor Standards Act.
The U.S. Department of Labor has recouped $603,953 in back wages for 829 workers at an Indianapolis-area automotive parts manufacturer after investigators determined the company improperly calculated overtime pay, the agency announced.
The Wage and Hour Division found that Toa (USA) LLC, based in Mooresville, Indiana, excluded a non-discretionary attendance bonus from its overtime calculations for hourly employees during applicable workweeks — a practice the agency said violates the overtime provisions of the Fair Labor Standards Act. Toa (USA) LLC is a primary supplier of body structure and suspension components to Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America.
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Under the FLSA, employers are required to factor non-discretionary bonuses, commissions, shift differentials, and similar incentive payments into the regular rate of pay before computing overtime. Wage and Hour Division District Director Juan Herrera in Indianapolis noted that employers who offer various forms of incentive compensation must review how those payments interact with overtime obligations.
The Labor Department urged employers, particularly those with complex incentive pay structures, to consult the agency's industry-specific compliance toolkits and its Payroll Audit Independent Determination program, which allows companies to self-report and voluntarily resolve potential wage violations. Workers who suspect they are owed back wages can contact the division's toll-free helpline at 866-4US-WAGE or use an online search tool to check for uncollected back wages.
Continue reading at DOL News Releases and Briefs.
