US Department of Labor sues Hyundai over child labor in Alabama

US Department of Labor sues Hyundai over child labor in Alabama

The United States Department of Labor filed a lawsuit on Thursday against South Korean automaker Hyundai Motor Co., an auto parts supplier, and a labor recruiter for allegedly employing child labor at an Alabama facility.

Filed in the U.S. District Court in Montgomery, Alabama, the complaint demands that the companies return any profits earned from using child labor. The defendants include Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC, and Best Practice Service LLC.

In 2022, Reuters reported that a Hyundai subsidiary and other parts suppliers in Alabama employed children as young as 12. The Department’s Wage and Hour Division found that a 13-year-old worked up to 60 hours a week on a SMART assembly line, operating equipment that shaped sheet metal into auto parts. SMART supplies parts to Hyundai Motor Manufacturing Alabama, which produces models like the Hyundai Santa Fe, Tucson, and Santa Cruz.

Concerns raised

The complaint revealed that SMART had informed the recruiting firm that two other employees were unwelcome due to their appearance, suggesting they were underage.

“Companies cannot avoid liability by blaming suppliers or staffing companies for child labor violations when they are also employers,” stated Solicitor of Labor Seema Nanda.

Ongoing concerns

This case underscores ongoing concerns about child labor practices in supply chains, particularly in industrial regions. Hyundai Motor Co. and the defendants have yet to comment on the lawsuit, highlighting the critical need for adherence to labor laws and ethical practices in global supply chains.

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