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Thursday, September 29, 2022

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Honda mistakenly overpaid worker bonuses, wants the money back

Getting a bonus at work is a great feeling and can make a real difference in some people’s quality of life. The effect is likely more significant with current inflation levels and the uncertain economy, but one automaker finds itself in a tricky spot after overpaying bonuses to several employees. Honda recently sent a memo to employees at its Marysville, Ohio, factory, notifying them that the company had overpaid bonuses and needed to recover the extra money.

NBC4 reported that some employees were on the hook for hundreds of dollars, and there is little they can do to stop the process. Honda is legally in the clear, as the Fair Labor Standards Act allows employers to recoup overpayments. A Honda spokesperson told NBC4 that “issues related to compensation are a sensitive matter, and we are working quickly on this item to minimize any potential impact to our associates. Since this is a personnel issue, we have no further information to provide related to this matter.”

Of course, being in the right doesn’t make this any less stressful for Honda’s PR department, nor does it lessen the blow for employees faced with repaying bonuses. The good news is that Honda gave until September 22 for employees to decide how they want to repay their amounts. They can choose to pay a lump sum upfront, have the amount deducted from future payroll, or remove it from future bonuses.  

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