Indiana Auto Parts Maker Pays $604K in Back Wages to 829 Workers
Federal investigators found Toa (USA) LLC improperly excluded attendance bonuses from overtime calculations, triggering a six-figure recovery.
The U.S. Department of Labor has recovered more than $603,000 in back wages for 829 workers at an Indianapolis-area automotive parts manufacturer following a federal investigation into overtime pay violations, the agency announced.
Wage and Hour Division investigators determined that Toa (USA) LLC, a Mooresville, Indiana-based supplier of body structure and suspension components, failed to factor a non-discretionary attendance bonus into its overtime rate calculations for hourly employees. That omission violated the overtime provisions of the Fair Labor Standards Act, which requires that certain bonuses and incentive payments be folded into the regular rate of pay before overtime is computed.
Read more FTC Orders Airlines, Ride-Share and Delivery Firms to Disclose Pricing Data →
Toa (USA) LLC serves as the primary components supplier for Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America, making it a significant link in the supply chains of two major automakers with substantial Midwest production footprints.
Wage and Hour Division District Director Juan Herrera said the case carries a broader compliance message for employers across industries. When companies offer commissions, shift differentials, attendance incentives, or other forms of non-discretionary pay, federal law mandates those amounts be included when determining an employee's overtime rate — a requirement that can be overlooked when payroll practices are not regularly audited.
The Labor Department noted that employers seeking guidance can contact the agency's toll-free helpline at 866-4US-WAGE or use its voluntary PAID program to self-report and resolve potential wage violations before they become the subject of formal investigations. Workers who believe they may be owed back wages can search the division's online database. Continue reading at DOL News Releases and Briefs.
