DOL Sues Alabama Businesses, Including Hyundai Plant, Over Child Labor Violations

The Department of Labor (DOL) has filed a lawsuit against three Alabama businesses, including a Hyundai Motor manufacturing plant, for employing a 13-year-old worker on an auto parts assembly line. The lawsuit, filed on Thursday in the U.S. District Court for the Middle District of Alabama, seeks to prevent Hyundai Motor Manufacturing Alabama, parts supplier SMART Alabama, and staffing agency Best Practice Service from profiting from child labor.

The DOL's complaint alleges that a 13-year-old girl, recruited by Best Practice Service, worked 50-60 hours a week on an assembly line at SMART Alabama, which produces parts for Hyundai. The complaint states that the girl worked for six to seven months on a section of the SMART Alabama assembly line that shapes metal sheets into car body parts. The lawsuit claims that all three companies jointly employed the child and asks that they disgorge all profits derived from the use of child labor.

“Child labor is an unfortunate reality in the United States today. This case is about who bears responsibility for child labor violations in an automotive supply chain,” the lawsuit states.

Solicitor of Labor Seema Nanda emphasized in a press release on Thursday, “The Department of Labor’s complaint seeks to hold all three employers accountable in the supply chain. Companies cannot escape liability by blaming suppliers or staffing companies for child labor violations when they are in fact also employers themselves.”

Earlier this year, the DOL penalized Tennessee-based Tuff Torq Corp. $1.8 million for allowing a worker under 18 to use a power-driven hoisting apparatus. The company argued that the worker was a temporary employee, not directly employed by them. The penalties included a $300,000 fine and $1.5 million in disgorgement.

In February, the DOL sought a nationwide restraining order against Fayette Janitorial Services. This Tennessee-based company, which cleans meat and poultry plants across 30 states, was investigated for employing young children to clean facilities at Perdue Farms in Virginia and Seaboard Triumph Foods in Iowa.

Child labor in U.S. supply chains has emerged as a significant risk, with thousands of underage migrant children found working in the country. Consequently, the compliance community is urged to conduct thorough risk assessments for child labor in their supply chains, as the DOL aims to strengthen its authority to identify and punish instances of child labor.

In an emailed statement, a Hyundai spokesperson said that using child labor “is not consistent with the standards and values we hold ourselves to as a company.” The spokesperson added that Hyundai investigated the issue, took “extensive” remedial measures, and reported its findings to the DOL. The company terminated its relationship with third-party staffing agencies, implemented stricter workforce standards across its supply chain, required its Alabama suppliers to conduct independent audits, and introduced a new compliance training program for suppliers.

However, Hyundai expressed disagreement with the DOL's approach to the issue. “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 statement said. “We are reviewing the new lawsuit and intend to vigorously defend the company.”

SMART Alabama and Best Practice Service could not be reached for comment.

By fLEXI tEAM