Yes, they do. However, it's not unusual for those auto hubs to fail to engage when worn; a lot of us have replaced them with manual hubs for just that reason.

When working, they're designed to disengage when moving backward, which is another reason a lot of folks replace them with manual hubs.

1987 Montero SWB, 2.6L, 5spd
Weber conversion
2-valve head from Engine Machine Service
"4G54 FTW!"