DOL Targets Hyundai, Suppliers Over Child Labor Allegations

The U.S. Department of Labor has filed a federal complaint against Hyundai Motor Manufacturing Alabama LLC and two of its suppliers, accusing the companies of employing oppressive child labor and seeking to stop their illegal use of underage workers.

The complaint, filed on May 30th in the U.S. District Court for the Middle District of Alabama, alleges that a 13-year-old child worked up to 50-60 hours per week at a metal stamping plant supplying Hyundai's vehicle assembly operations. The child operated machines that formed sheet metal components for automobile bodies.

Named as defendants are Hyundai's Alabama vehicle assembly plant, parts supplier SMART Alabama LLC where the child worked, and staffing firm Best Practice Service LLC which employed the minor. The DOL asserts all three companies were "joint employers" of the child worker.

"Companies cannot escape liability by blaming suppliers or staffing companies for child labor violations when they are in fact also employers themselves," said Solicitor of Labor Seema Nanda. She accused the companies of "willfully and repeatedly" violating federal child labor laws between July 2021 and February 2022.

Jessica Looman, Administrator of the DOL's Wage and Hour Division, called employing a 13-year-old assembly line worker "shocking" and said it violates the Fair Labor Standards Act's prohibitions on oppressive child labor and its "hot goods" provisions.

The complaint seeks a court order prohibiting the companies from employing minors illegally and requiring them to surrender any profits derived through the unlawful use of child labor.

Child labor remains a persistent issue, with the DOL investigating nearly 1,000 cases involving over 5,700 children working in violation of labor standards in fiscal 2023 alone.

Hyundai did not immediately respond to a request for comment.

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