The U.S. Department of Labor (DOL) has initiated legal action against South Korean auto giant Hyundai Motor Co., an auto parts plant, and a recruiting company following the discovery of a 13-year-old girl working illegally on an assembly line in Alabama.
Illegal Child Labor Uncovered
The DOL filed a complaint in the U.S. District Court for the Middle District of Alabama, demanding that Hyundai, SMART Alabama and Best Practice Service relinquish profits obtained from the use of child labor. The investigation revealed that the young girl worked up to 60 hours a week at the SMART assembly line in Luverne, Alabama, operating machinery to produce auto body parts. Instead of attending middle school, she spent six to seven months in hazardous work conditions, producing parts for Hyundai Motor Manufacturing Alabama. This shocking revelation underscores the severity of the child labor violations involved.
Legal and Corporate Repercussions
Jessica Looman, the DOL’s wage and hour division administrator, expressed outrage over the findings. “A 13-year-old working on an assembly line in the United States of America shocks the conscience,” she said. The complaint alleges that Hyundai is liable for repeated child labor violations at SMART Alabama, one of its subsidiaries, during the period between July 11, 2021, and February 1, 2022. The child was reportedly dispatched to work at SMART by Best Practice Service, the staffing agency named in the lawsuit.
According to the complaint, SMART Alabama had previously informed the staffing agency that “two additional employees were not welcome back at the facility due to their appearance and other physical characteristics, which suggested they were also underage.” This highlights a broader issue of child labor within Hyundai’s supply chain.
Hyundai’s Response and Remedial Measures
In response to the lawsuit, Hyundai stated its commitment to upholding U.S. labor laws and expressed disappointment over the DOL’s legal action. “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 asserted. The automaker detailed its efforts to investigate the issue thoroughly, implement extensive remedial measures, and cooperate with the DOL to resolve the matter.
Hyundai criticized the DOL’s approach, arguing that the legal theory applied in the complaint could set a concerning precedent for other automotive companies and manufacturers. Despite this, Hyundai confirmed that its suppliers terminated relationships with the implicated staffing agencies, conducted reviews of their U.S. supplier networks, and imposed stricter workplace standards. Additionally, the company now requires its Alabama suppliers to conduct independently verified audits to ensure compliance with labor laws.
Broader Implications and Investigations
This case marks the first time the DOL has sued a major company for child labor law violations at a subcontractor. The lawsuit stems from a government investigation and a separate Reuters report that uncovered widespread illegal use of migrant child laborers at Hyundai suppliers in Alabama. Reuters had previously reported that children as young as 12 were working for Hyundai subsidiaries and other parts suppliers in the region.
The 13-year-old girl and her two brothers, aged 12 and 15, were discovered working at the plant instead of attending school, following the brief disappearance of the Guatemalan migrant child from her family’s Alabama home in February 2022. This case highlights the need for stricter enforcement of labor laws and protections for vulnerable populations.