Hyundai Faces Legal Action from US Over Child Labor Allegations

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Hyundai Faces Legal Action from US Over Child Labor Allegations
A sign with the Hyundai logo displayed at a Hyundai dealership on April 7, 2017 in San Leandro, California. Justin Sullivan/Getty Images

On Thursday (May 30), the US Department of Labor filed a lawsuit against Hyundai Motor Co, an auto parts plant, as well as a labor recruiter for their involvement in the illegal use of child labor in Alabama.

Hyundai Faces Child Labor Lawsuit

The complaint was filed in US District Court in Montgomery, Alabama, and also requested an order for the companies to give up any profits associated with the use of child labor.

The car manufacturer is responsible for the employment of children in its supply chain, which includes a 13-year-old girl who labored up to 60 hours per week making car parts, Reuters reported.

In the lawsuit, filed in a federal court in Montgomery, Alabama, the department alleges that Hyundai is accountable for employing underage workers at a Smart Alabama factory in Luverne, Alabama.

This factory produces various components, including body panels, which are then sent to a Hyundai factory in Montgomery.

A staffing agency, Best Practice Service, allegedly recruited the children to work at the supplier's plant, according to the lawsuit.

Alleged Child Labor in Ford, General Motor

According to the suit, a 13-year-old girl was employed at the Smart plant from July 2021 to February 2022 after being recruited by Best Practice Service. Additionally, it was claimed that two more children were working at the facility.

The Labor Department reported that Hyundai was found to be in violation of the "hot goods" provision of the Fair Labor Standards Act.

According to the New York Times, this provision aims to prevent the interstate commerce of goods that were produced in violation of a minimum salary, overtime, or child labor provisions .

In 2022, it was discovered that Smart Alabama had employed underage workers at its facility, while Kia, a subsidiary of the same South Korean conglomerate as Hyundai, was also found to have utilized child labor in the South.

An investigation conducted in 2023 revealed that children were being employed by the suppliers of both Ford and General Motor, according to The Times.

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