Labor Department Sues Hyundai Over Alleged Child Labor Use in Alabama Supply Chain

In a recent development, the U.S. Labor Department has taken legal action against Hyundai regarding the purported use of child labor in Alabama. The car manufacturer has been accused of being complicit in the employment of underage workers within its supply chain. The lawsuit, which was filed in a federal court in Montgomery, Alabama, alleges that Hyundai bears responsibility for the utilization of child labor at a Smart Alabama factory in Luverne. This facility is involved in the production of various car parts, including body panels that are subsequently supplied to a Hyundai factory located in Montgomery.

Allegations and Implicated Parties

The lawsuit specifically highlights the employment of a 13-year-old girl at the Smart Alabama factory, where she reportedly worked an excessive 60 hours per week. The U.S. Labor Department has further implicated a staffing agency, Best Practice Service, for its involvement in recruiting children to work at the supplier’s plant.

Responses and Statements

Following the filing of the lawsuit, Hyundai released a statement expressing that the use of child labor contradicts the company's internal standards and values. Furthermore, Hyundai contended that the U.S. Labor Department’s legal approach represents an unprecedented theory that unfairly holds the company accountable for the actions of its suppliers.

On the other hand, Smart, the Alabama factory in question, has yet to publicly address the allegations. Additionally, Best Practice Service, the staffing agency implicated, is no longer operational and has not responded to requests for comments regarding the situation.