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- calendar_today October 28, 2026
U.S. Labor Department Recovers Owed Overtime Wages
The U.S. Department of Labor announced that over $600,000 in back wages has been collected for 829 employees at Toa (USA) LLC, a vehicle parts manufacturer located in the Indianapolis area. This action follows a federal investigation that uncovered violations related to overtime pay requirements under the Fair Labor Standards Act.
Details of the Wage and Hour Division Investigation
According to a news release from the Department of Labor, the Wage and Hour Division determined that Toa (USA) LLC failed to pay $603,953 in overtime pay to its workers. The investigation revealed that the company did not include a non-discretionary attendance bonus for hourly employees while calculating overtime during relevant workweeks.
This oversight led to the company underpaying workers for overtime hours, which violates the overtime provisions set forth in the Fair Labor Standards Act. Toa (USA) LLC operates manufacturing facilities in Mooresville, Indiana, and serves as the primary body structure and suspension components supplier for Subaru of Indiana Automotive and Toyota Motor Engineering & Manufacturing North America.
Understanding Overtime Calculations and the Law
Federal law mandates that employers must include all non-discretionary bonuses and other incentive pay when determining the regular rate for calculating overtime wages. Wage and Hour Division District Director Juan Herrera in Indianapolis explained, “When employers pay commissions, differentials, certain bonuses, stipends, or other incentives, they must include them in the calculation of overtime pay.”
These regulations exist to ensure that employees receive fair compensation for overtime work, including all types of incentive pay such as attendance bonuses, which can result in higher overtime payouts.
Resources for Employers and Employees
The Labor Department encouraged employers—especially those that offer incentive pay—to review compliance assistance materials to ensure their paid overtime calculations align with legal requirements. Employees and employers alike are able to reach out to the Wage and Hour Division for guidance. Assistance is available online and through the division’s toll-free helpline at 866-487-9243.
This case highlights the importance of accurate wage calculations and awareness of employee rights under federal law.
The Impact on Manufacturing Wages in the Region
The recovery of back wages for hundreds of employees emphasizes the ongoing effort by the Labor Department to enforce fair labor practices. The investigation serves as a reminder to employers in the manufacturing sector and beyond about the critical obligation to comply with the Fair Labor Standards Act and related wage guidelines.
Ensuring that bonuses and incentive pay are considered in overtime calculations is essential for maintaining lawful and equitable compensation for all employees.
Source: fox59.com.
