Auto giant Honda which employs thousands of people in central Ohio is asking its employees to pay the company. Honda issued a memo to employees at its Marysville plant, stating that it overpaid bonuses and needs the money back.
Employees claim that returning the money will be difficult for their families, but an attorney who is not involved in this case claims that Honda is collecting the overpayments properly.
“Earlier this month Honda provided bonus payments to its associates, some of whom received overpayments,” said Chris Abbruzzese, a Honda spokesperson.
“Issues related to compensation are a sensitive matter…we are working quickly on this item to minimize any potential impact to our associates.”
In a memo to employees, the company is now asking them to return the bonus by September 22, or have it deducted from future paychecks or bonuses.
According to media reports, some employees have been asked to return up to 8% of their bonus, despite having already spent the money on mortgages and groceries.
It is worth noting that the Ohio factory produces vehicles such as the Accord, CR-V, TLX, NSX, and Integra. If the employees refuse to repay the money, experts believe Honda will sue them because there is precedent in such cases.
Honda’s overpayment bonus comes against a backdrop of the supply chain, chip shortage, and logistical issues. Honda announced last month that it would reduce production in Japan by up to 40% in September.