Feds Sue Hyundai, Alleging ‘Oppressive Child Labor’ In Alabama Supply Chain

The U.S. Labor Department on Thursday filed a lawsuit against Hyundai, accusing the auto manufacturer of “oppressive child labor” in its Alabama supply chain.

The complaint alleges that a 13-year-old worked up to 50-60 hours a week on the assembly line of a Hyundai supplier in the city of Luverne. The factory there produces parts, including body panels, that go onto SUVs built at Hyundai’s plant an hour away in Montgomery.

Officials say an unspecified number of other minors also worked at the supplier, Smart Alabama. Hyundai announced last year that it was divesting its ownership in Smart after Reuters published an investigation into child labor at the factory.

The children who worked at the Smart plant were hired by a staffing company, according to the complaint. But the Labor Department argues that Hyundai is ultimately responsible for any violations since the Smart facility “existed at … [Hyundai’s] discretion.”

“Nearly all, if not the entirety, of the component parts that SMART manufactured during the relevant period were shipped to … [Hyundai] in Montgomery, Alabama,” the lawsuit states. That facility produces the automaker’s Tucson and Santa Fe models.

The Labor Department also sued Smart and the staffing company, Best Practice Service. Officials are asking that a judge issue an order “permanently enjoining” the companies from employing children, and requiring them to “disgorge all profits related to their use of oppressive child labor.”

Hyundai released a statement through a spokesperson saying that it “worked over many months to thoroughly investigate this issue and took immediate and extensive remedial measures.” The company argued that there was “no legal basis” to hold it responsible for a supplier’s alleged violations, and said it would defend itself in court.

“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,” Hyundai said.

U.S. officials have said that they are facing an increase in child labor cases, often involving migrant kids who fled Latin American countries and were hired onto the U.S. workforce. Last year, The New York Times reported a series of stories about migrant children working dangerous jobs in meatpacking and roofing.

The Labor Department says it documented 5,800 children illegally employed during the most recent fiscal year, an 88% increase since 2019.

The complaint against Hyundai alleges that the 13-year-old girl worked for a period of six to seven months at the factory when she should have been attending middle school.

Jessica Looman, the head of the Labor Department’s Wage and Hour Division, said in a statement that the case “shocks the conscience.”

“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,” Looman said.