Federal investigations into an Alabama auto parts company found that it had hired a 13-year-old to help manufacture auto parts for Hyundai.
Hyundai Goes to US Court
The US Department of Labor has taken South Korean auto manufacturing giant Hyundai Motor Co. to federal court over serious child labor law violations that occurred in Alabama.
Three Companies Implicated
A complaint was filed in U.S. District Court in Montgomery, Alabama on Thursday against Hyundai, auto parts company SMARTS Alabama, and Alabama staffing agency Best Practice Service.
Relinquishing Profits From Child Labor
The Labor Department now wants the federal courts to force these companies to give up any and all profits collectively made while using illegal child labor.
13-Year-Old on Assembly Line
In 2022 a federal investigation discovered that a 13-year-old girl had been working on an assembly line at a SMART factory in Luverne, Alabama.
Up to 60 Hour Weeks
According to the Department’s Wage and Hour Division, the girl had been working as much as 50 to 60 hours per week on an assembly line that manufactured auto body parts for Hyundai Motor Manufacturing Alabama.
Six Months of Work
She had been working for the parts company for six or seven months, between July 11, 2021, through Feb. 1, 2022, and had been initially hired and dispatched to the plant by Best Practice Service.
Giving Up Middle School to Work
“Instead of attending middle school, she worked on an assembly line making parts,” legal documents asserted.
It “Shocks the Conscience”
“A 13-year-old working on an assembly line in the United States of America shocks the conscience,” said DOL wage and hour division administrator Jessica Looman.
Some Employees Rejected
However, the Labor Department complaint confirmed that SMART had rejected several employees due to their perceived age, telling Best Practise Service 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.”
They Cannot Escape Liability
Despite these acknowledgments, Labor Department solicitor Seema Nanda issued a news release damning both Hyundai and SMART. “Companies cannot escape liability by blaming suppliers or staffing companies for child labor violations when they are in fact also employers themselves,” Nanda wrote.
Reports Since 2022
Reports that other underage minors as young as 12 had been working for parts suppliers and Hyundai subsidiaries in Alabama have been circulating since 2022.
‘Undocumented and Underaged’
One 2022 investigation by Reuters, titled “Undocumented and Underaged,” covered the problem of underage migrant workers being hired at plant suppliers for Hyundai and Kia, as well as several poultry plants.
Hyundai Calls It “Unfair”
The investigation led to Hyundai divesting from SMART Alabama. Now, the company has responded to the Labor Department complaint, expressing it’s disappointment and asserting that it would be “unfair” for federal courts to hold Hyundai responsible for SMART hiring practices.
“No Legal Basis”
Michael Stewart, a spokesperson for Hyundai declared that the company had held their own investigations to ensure that their company was compliant with labor laws, and had presented their findings to the Labor Department even though “no legal basis existed to impose liability under the circumstances.”
Hyundai Rejects Blame
“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,” the company continued.
“Jointly Employed” by All Three Companies
However, the Labor Department complaint asserts at the time the girl was employed the SMART plant was completely “integrated” with Hyundai’s Alabama plant, and that all three companies “jointly employed” the girl.
A Growing Trend
While the case is the first of its kind, as the Labor Department has never sued a company for child labor violations carried out by a subsidiary or subcontractor, it is just the next in a growing trend of child labor cases in the US.
Nearly 6000 Children Illegally Employed
The Labor Department has noted a surge in child labor violations in recent years, with 5,792 children implicated in similar cases during the 2023 fiscal year. Hundreds of these minors worked in hazardous and “oppressive” conditions.
Widespread Practise
The department and other agencies have pointed to higher rates of illegal immigration as a factor, as the illegal employment of undocumented minors has become more widespread.
Fatalities Occurring
Recent child labor violations have even led to fatalities in some cases, most notably the deaths of two 16-year-olds last summer. One died at a Wisconsin sawmill, the other at a poultry plant in Mississippi.
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