Subaru, Toyota Supplier to Pay 'Back Wages' to More Than 800 U.S Workers

The company failed to include bonuses in overtime pay calculations.

White Toyota Camry sedan parked on urban street with trees and buildings in background
Toa is the primary supplier of body structure and suspension components for Toyota Motor Engineering & Manufacturing North America.
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The U.S. Department of Labor has recovered $603,953 in back wages for 829 workers after an investigation found the Indianapolis-area vehicle parts manufacturer failed to calculate overtime wages properly. The DOL's Wage and Hour Division made the announcement in a news release issued this morning.

Investigators found that auto supplier Toa (USA) LLC, a subsidiary of Japan-based Toa Industries, did not include a non-discretionary attendance bonus for hourly employees when calculating overtime during applicable workweeks, a violation of the overtime provisions of the Fair Labor Standards Act. A non-discretionary attendance bonus, according to the DOL, is a pre-established financial reward that an employer is legally obligated to pay an employee who meets a specific, measurable attendance condition, like perfect attendance over a certain period.

Toa, with manufacturing facilities in Mooresville, Indiana, is the primary supplier of body structure and suspension components for Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America.

IEN reached out to Toa, but the company has not yet responded to our request for comment.

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