Julie Su Acting United States Secretary of Labor | Official Website
On May 30, 2024, the U.S. Department of Labor filed a lawsuit requesting a federal court to prevent three Alabama companies, including a Hyundai assembly and manufacturing plant in the U.S., from illegally employing children. The lawsuit also seeks to compel the companies to forfeit any benefits derived from oppressive child labor.
The intervention follows an investigation by the Department's Wage and Hour Division, which found that a 13-year-old child was working between 50 and 60 hours per week on an assembly line in Luverne, Alabama. The child operated machines that transformed metal sheets into car parts. The federal court filing names Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC, and Best Practice Service LLC as defendants. Best Practice Service had sent the minor to SMART Alabama, which supplied components to Hyundai Motor Manufacturing Alabama. The department alleged that all three companies jointly employed the minor.
The department further claimed that between July 11, 2021, and February 1, 2022, the companies willfully and repeatedly violated child labor provisions of the Fair Labor Standards Act (FLSA). Additionally, it alleged violations of the "hot goods" provision of the FLSA.
"The Department of Labor's complaint seeks to hold all three supply chain employers accountable," stated Solicitor of Labor Seema Nanda. "Companies cannot evade responsibility by blaming suppliers or staffing firms for child labor violations when they are also employers themselves."
"A 13-year-old working on an assembly line in the United States shocks the conscience," said Wage and Hour Administrator Jessica Looman. "As we work to eradicate illegal child labor wherever we find it, we also continue ensuring that all employers are held accountable for breaking the law."
The department's Office of Solicitor filed the lawsuit in the U.S. District Court for the Middle District of Alabama in Montgomery. It seeks an order to end illegal employment of minors and demands that companies return benefits related to using child labor.
Hyundai Motor Manufacturing Alabama LLC operates a manufacturing plant at 700 Hyundai Blvd. in Montgomery. At the time of these events, SMART Alabama LLC manufactured components at a plant located at 121 Shin Young Dr. in Luverne. Best Practice Service LLC was a staffing agency situated at 722 Oliver Road in Montgomery supplying labor to SMART Alabama.
In fiscal year 2023, the department investigated 955 cases of child labor violations involving 5,792 minors nationwide, including 502 minors working in hazardous occupations violations. These infractions resulted in civil monetary penalties exceeding $8 million imposed on employers.
The Wage and Hour Division offers confidential compliance assistance regarding FLSA and other federal labor laws to anyone regardless of origin who has questions about these laws. Workers and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The division can communicate with callers in over 200 languages.
For more information about the Wage and Hour Division or if you believe you may be owed back wages collected by them, visit their website or download their Timesheet App available in English and Spanish for Android and iPhone devices.
