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Honda Overpaid Employee Bonuses -- And Then Asked for the Extra Cash Back

The carmaker gave workers nine days to give back the money or have it deducted from future paychecks or bonuses.


Big bonuses went awry for a group of factory employees last week, according to NBC4.

Bloomberg / Contributor / Getty Images
Honda worker at plant in Marysville, Ohio in May 2006.

Workers at the Honda plant in Marysville, were overpaid bonuses — then asked to give the extra cash back to the company.

The company confirmed the mistake in a statement to Entrepreneur.

"Earlier this month Honda provided bonus to its associates, some of whom received overpayments," Chris Abbruzzese, a Honda spokesperson, said.

"Issues related to compensation are a sensitive matter, and we are working quickly on this item to minimize any potential impact to our associates," Abbruzzese added.

But it's not easy to let go of . One spouse of a worker who was asked to give a portion of their bonus back — almost 8% — told the outlet the amount was "you know, a car payment. That's half of our mortgage…that's two, three weeks' worth of groceries. That's a lot of money for us."

In a memo sent to employees, the company gave employees the option to pay back a portion of the bonus within nine days, by September 22, have it deducted from future paychecks, or have it taken out of future bonuses.

Honda, like other carmakers, had a rough year between shortages and Covid-related supply chain issues, but its most recent earnings report featured a more optimistic profit outlook, boosted by a weaker Chinese yen, according to Bloomberg.

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