South Korean auto giant Hyundai is being sued by the U.S. federal government over child labor laws in the state of Alabama.
In a press release issued May 30th, 2024, U.S. Department of Labor alleges that a Hyundai assembly and manufacturing plant is one of three companies that jointly employed a child who worked up to 60 hours a week on an assembly line, operating machines that formed sheet metal into auto body parts. The complaint seeks to stop Hyundai and partners from profiting from what the government calls "oppressive child labor."
In a statement shared to various media outlets, Hyundai expressed disappointment the U.S. officials had moved forward with the complaint, saying it enforces U.S. labor laws.
"The use of child labor, and breach of any labor law, is not consistent with the standards and values we hold ourselves to as a company," Hyundai said in a statement. "We worked over many months to thoroughly investigate this issue and took immediate and extensive remedial measures. We presented all of this information to the U.S. Department of Labor in an effort to resolve the matter, even while detailing the reasons why no legal basis existed to impose liability under the circumstances."
"Unfortunately, the Labor Department is seeking to apply an unprecedented legal theory that would unfairly hold Hyundai accountable for the actions of its suppliers and set a concerning precedent for other automotive companies and manufacturers," the company added.
Hyundai also reportedly said that it and its suppliers immediately ended their relationship with the staffing agencies named in the complaint, among other things.
Read the U.S. Department of Labor press release detailing the complaint below:
MONTGOMERY, AL – The U.S. Department of Labor filed a complaint on May 30, 2024, asking a federal court to prevent three Alabama companies, including a Hyundai U.S. assembly and manufacturing plant, from employing children illegally. The complaint also requests that the court require the three companies to surrender profits related to the use of oppressive child labor.
The action follows an investigation by the department’s Wage and Hour Division that found that a 13-year-old worked up to 50-60 hours per week on an assembly line in Luverne, Alabama operating machines that formed sheet metal into auto body parts. In the complaint filed in federal court, the department named three companies as defendants, Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC and Best Practice Service, LLC. Best Practice Service sent the child to SMART Alabama, which provided component parts to Hyundai Motor Manufacturing Alabama. In the complaint, the department alleged that all three companies jointly employed the child.
The department went on to allege that between July 11, 2021, through Feb. 1, 2022, the companies willfully and repeatedly violated the child labor provisions of the Fair Labor Standards Act. The complaint further alleges that the companies violated the “hot goods” provision of the Fair Labor Standards Act.
“The Department of Labor’s complaint seeks to hold all three employers accountable in the supply chain,” said Solicitor of Labor Seema Nanda. “Companies cannot escape liability by blaming suppliers or staffing companies for child labor violations when they are in fact also employers themselves.”
“A 13-year-old working on an assembly line in the United States of America shocks the conscience,” said Wage and Hour Division Administrator Jessica Looman. “As we work to stop illegal child labor where we find it, we also continue to ensure that all employers are held accountable for violating the law.”
The department’s Office of the Solicitor filed the complaint in the U.S. District Court for the Middle District of Alabama in Montgomery and seeks an order to stop the illegal employment of children. The complaint also requests an order requiring the companies to disgorge profits related to the use of child labor.
Hyundai Motor Manufacturing Alabama LLC operates a manufacturing facility at 700 Hyundai Blvd. in Montgomery. At the time of the events at issue, SMART Alabama LLC manufactured component parts at a facility located at 121 Shin Young Dr. in Luverne. And Best Practice Service LLC was a staffing agency – located at 722 Oliver Road in Montgomery – that supplied labor to SMART Alabama.
In fiscal year 2023, the department investigated 955 cases with child labor violations, involving 5,792 children nationwide, including 502 children employed in violation of hazardous occupation standards. The department addressed those violations by assessing employers over $8 million in civil money penalties.
The Wage and Hour Division offers confidential compliance assistance to anyone – regardless of where they are from – with questions about the FLSA and other federal labor laws. Workers and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The division can speak with callers in more than 200 languages.
Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s Timesheet App, which is available in English and Spanish for Android and iPhone devices, to ensure hours and pay are accurate.
The U.S. Department of Labor filed a complaint on May 30, 2024, asking a federal court to prevent three Alabama companies, including a Hyundai U.S. assembly and manufacturing plant, from employing children illegally. The complaint also requests that the court require the three companies to surrender profits related to the use of oppressive child labor.
The action follows an investigation by the department’s Wage and Hour Division that found that a 13-year-old worked up to 50-60 hours per week on an assembly line in Luverne, Alabama operating machines that formed sheet metal into auto body parts. In the complaint filed in federal court, the department named three companies as defendants, Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC and Best Practice Service, LLC. Best Practice Service sent the child to SMART Alabama, which provided component parts to Hyundai Motor Manufacturing Alabama. In the complaint, the department alleged that all three companies jointly employed the child.
The department went on to allege that between July 11, 2021, through Feb. 1, 2022, the companies willfully and repeatedly violated the child labor provisions of the Fair Labor Standards Act. The complaint further alleges that the companies violated the “hot goods” provision of the Fair Labor Standards Act.
“The Department of Labor’s complaint seeks to hold all three employers accountable in the supply chain,” said Solicitor of Labor Seema Nanda. “Companies cannot escape liability by blaming suppliers or staffing companies for child labor violations when they are in fact also employers themselves.”
“A 13-year-old working on an assembly line in the United States of America shocks the conscience,” said Wage and Hour Division Administrator Jessica Looman. “As we work to stop illegal child labor where we find it, we also continue to ensure that all employers are held accountable for violating the law.”
The department’s Office of the Solicitor filed the complaint in the U.S. District Court for the Middle District of Alabama in Montgomery and seeks an order to stop the illegal employment of children. The complaint also requests an order requiring the companies to disgorge profits related to the use of child labor.
Hyundai Motor Manufacturing Alabama LLC operates a manufacturing facility at 700 Hyundai Blvd. in Montgomery. At the time of the events at issue, SMART Alabama LLC manufactured component parts at a facility located at 121 Shin Young Dr. in Luverne. And Best Practice Service LLC was a staffing agency – located at 722 Oliver Road in Montgomery – that supplied labor to SMART Alabama.
Photo Credit: Hyundai.