The U.S. Department of Labor has recovered $603,953 in back wages for 829 workers after an investigation found an Indianapolis-area vehicle parts manufacturer failed to properly calculate overtime wages.
Investigators with the department’s Wage and Hour Division found that Toa (USA) LLC, a major automotive supplier that serves top-tier automotive companies, did not include a non-discretionary attendance bonus for hourly employees when calculating overtime during applicable workweeks, in violation of the overtime provisions of the Fair Labor Standards Act.
“When employers pay commissions, differentials, certain bonuses, stipends, or other incentives, they must include them in the calculation of overtime pay,” said Wage and Hour Division District Director Juan Herrera in Indianapolis. “We encourage employers, especially those who offer various types of incentive pay, to review our compliance assistance materials and contact us with any questions about overtime requirements.”
Toa (USA) LLC, with manufacturing facilities in Mooresville, is the primary body structure and suspension components supplier for Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America.
Employees and employers can contact the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.