The United States Department of Labor has alleged that Hyundai and two of its supplier companies illegally employed a 13-year-old child who was working up to 60 hours a week on an assembly line in Alabama. The complaint states that the child was sent to work at SMART Alabama by Best Practice, a staffing agency, with all three companies being held accountable for employing the child. The child was working on machines forming sheet metal into body parts for vehicles from July 11, 2021, through February 1, 2022, in violation of child labor provisions of the Fair Labor Standards Act.
Wage and Hour Division Administrator Jessica Looman expressed shock at the situation of a 13-year-old working on an assembly line in the United States, stating that all employers should be held accountable for violating child labor laws. Hyundai, while cooperating with the investigation, denied responsibility for employing the child and stated that they are reviewing the lawsuit and intend to vigorously defend the company. The company claimed to have taken immediate steps to address the issue and prevent future employment of underage workers by terminating relationships with third-party staffing agencies and conducting a broader review of their U.S. supplier network.
The complaint, filed in an Alabama federal court, seeks to require the companies to release any profits related to the use of child labor and to prevent any future use of child labor. The allegations against Hyundai and its suppliers come after a series of investigations by Reuters into the use of child labor in Alabama. SMART declined to comment on the complaint, and attempts to reach the staffing company Best Practice have been unsuccessful. The Department of Labor is taking action to ensure that companies are held accountable for illegal child labor practices and to protect the rights of underage workers.
Hyundai stated that they have taken steps to address the issue and prevent the future employment of underage workers, emphasizing their commitment to complying with labor laws and ensuring ethical practices within their supply chain. The company claims to have terminated relationships with the staffing agencies involved and conducted a thorough investigation of their U.S. supplier network. By addressing the issue promptly and implementing corrective measures, Hyundai aims to demonstrate their commitment to upholding labor standards and preventing the exploitation of underage workers in their operations.
The Department of Labor’s complaint highlights the importance of enforcing child labor laws and holding companies accountable for illegal employment practices. The case involving Hyundai and its suppliers underscores the need for increased oversight and regulation to prevent the exploitation of underage workers in the United States. By seeking legal action against the companies involved, the Department of Labor is sending a strong message that the use of child labor will not be tolerated and that companies must comply with labor laws to protect the rights of vulnerable workers. The outcome of this case will likely have implications for how companies approach their hiring practices and supply chain management to ensure compliance with labor regulations and ethical standards.