- Lawsuit claims Hyundai and Kia violated California’s labor policies.
- Allegations include use of prison, migrant, and child labor.
- Hyundai denies claims, citing strict supplier compliance standards.
A new lawsuit targeting Hyundai and Kia in the United States is pushing to block the sale of their vehicles in California, citing what it calls “unconscionable labor practices.” The case takes aim not at their cars themselves, but at the way the automakers allegedly source parts and labor across their Southern U.S. supply chains.
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It claims both brands have violated California’s Unfair Competition Law by relying on suppliers accused of engaging “in illegal and unethical labor practices.”
What the Lawsuit Argues
The complaint was filed by the nonprofit group ‘Jobs to Move America’ in the Superior Court of California. Its central argument is that while Hyundai and Kia have marketed themselves as socially responsible to California public agencies, thus allowing them to secure public contracts, they actually operate in ways that run counter to the state’s “high-road” labor policies.
These policies forbid the use of public funds to buy goods produced with sweatshop, forced, prison, or child labor. According to the lawsuit, Hyundai and Kia’s Southern suppliers rely on all three.
The filing argues that by asserting compliance with California’s high-road standards, “Hyundai and Kia are misleading California public agencies and consumers, and giving themselves an unfair competitive advantage over responsible companies.”
Child Labor Accusations
In mid-2022, Hyundai came under fire in the United States after an investigation revealed that at least four of its major suppliers in Alabama had been using migrant children as young as 12 years old to work.
“No company is above the law— especially companies, like Hyundai and Kia, that are benefiting from public money,” Jobs at America’s litigation director Meredith Stewart said.
“This case says enough is enough to Hyundai and Kia’s persistent refusal to take responsibility for the abhorrent labor practices in their Southern supply chain. Californians— and American workers— deserve better.”
The lawsuit seeks a declaratory judgment confirming that Hyundai and Kia’s actions violate California law, along with a permanent injunction mandating independent audits, third-party monitoring, and ongoing compliance verification.
Hyundai Pushes Back
Hyundai has rejected the claims outright, calling them “baseless” in a statement shared with the press. The company maintains that it “prioritizes the safety and well-being of our workforce above all else and remains fully compliant with all federal and state regulations.”
“We require our suppliers and business partners to adhere to Hyundai’s strict safety, employment, and legal standards, and take decisive action when violations occur,” it said.
“For nearly four decades, Hyundai has been a driver of American growth and innovation from its U.S. headquarters in Fountain Valley, California, and we value our long-standing relationship with the state. Hyundai is a major economic contributor to the communities in which we operate and is committed to providing good jobs, with competitive wages and benefits,” the company added.
