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DOL Lawsuit Against Hyundai for Child Labor

Apr 11, 2025

Department of Labor Sues Hyundai over Child Labor

Introduction

  • Source: CNN Business
  • Date Published: May 31, 2024
  • Authors: Peter Valdes-Dapena and Ramishah Maruf

Key Details

  • Accusation: The U.S. Department of Labor (DOL) has filed a lawsuit against Hyundai and two supplier companies for employing a 13-year-old child illegally.
  • Allegation: The child worked up to 60 hours a week on an assembly line in Alabama.
  • Companies Involved: Hyundai, SMART Alabama (a Hyundai parts supplier), and Best Practice (staffing agency).
    • Hyundai owns a majority of SMART Alabama's parent company.

Legal Actions

  • Violation: Alleged violations of the Fair Labor Standards Act's child labor provisions.
  • Period of Employment: July 11, 2021, through February 1, 2022.
  • Complaint Goals:
    • Seek an order for the companies to release profits obtained from child labor.
    • Prevent future employment of child labor.

Hyundai's Response

  • Cooperation: Hyundai has cooperated with the DOL's investigation.
  • Denial of Responsibility: Hyundai claims they are not responsible for the child's employment.
  • Corrective Measures:
    • Terminated relationships with staffing agencies responsible, who falsely certified legal age compliance.
    • Conducted an investigation and review of U.S. supplier network.

Statements

  • Jessica Looman, Wage and Hour Division Administrator: Expressed shock and determination to hold employers accountable.
  • Hyundai: Plans to defend vigorously against the lawsuit.
  • SMART: Declined to comment on the situation.
  • Best Practice: No response to CNN's outreach.

Background

  • Hyundai and its suppliers have been under investigation by Reuters for child labor practices in Alabama.

Legal Proceedings

  • Filed In: Federal court in Alabama.

Conclusion

  • The DOL is aiming to cease child labor practices and ensure accountability and reform in the employment practices of Hyundai and its suppliers.