Hyundai Sued Over ‘Prison Labor, Child Labor’ as Korean Workers Return to Georgia Job Site
Hyundai Motor Group has struggled with a string of labor-related scandals. The automaker has been hit with one allegation after another. We may need to wait for a jury to decide whether the newest charges hold up.
In 2024, the U.S. Department of Labor sued Hyundai for “oppressive child labor.” It had evidence that a 13-year-old girl worked 60-hour weeks at the company’s Alabama plant. Smart Alabama operated the factory. Hyundai owns that company outright. Smart Alabama then hired a third-party contractor to recruit employees and handle documentation.
Federal task force raids Georgia battery site
In September 2025, a joint task force led by ICE raided a battery factory Hyundai is building in Georgia. Authorities detained 475 suspected “unlawful aliens.” When agents announced that 300 of them were South Korean nationals, the South Korean government dispatched diplomats. Authorities held those workers at a detention center for a week. Then South Korea flew them home. Now, Hyundai announced that construction resumed with a mix of new and returning staff.
Hyundai thanked both governments “for their collaboration in supporting a smooth and timely return” for these workers. Then, almost immediately, the company was sued again.
Nonprofit alleges widespread labor exploitation
The Jobs to Move America nonprofit alleges that Hyundai “engaged in severe labor exploitation, including coerced prison labor, child labor and migrant labor with working conditions that led to higher safety issues and death.” It claims Hyundai relied on labor from prisons in Alabama and Georgia. The group also cited workers “as young as 13” employed by Hyundai’s suppliers.
This lawsuit could hurt the automaker in two major ways. First, future public agency contracts that Hyundai or Kia hope to win could be jeopardized. Second, certifications the company currently enjoys may be stripped away.
The organization is suggesting a pause on certifications stating that Hyundai vehicles “are made with high-road employment standards until they submit to an independent audit of their supply chain in Alabama and Georgia.”
