In Alabama, SMART Alabama LLC, a subsidiary linked to Hyundai Motor Co., is under heightened examination after reports surfaced about underage labor at its metal stamping facility. The plant supplies components to Hyundai’s Montgomery assembly complex and sits within the company’s northern United States manufacturing network. U.S. law sets a minimum age of 18 for workers in these facilities, and investigators are probing whether that standard was breached at the Alabama site.
The questions began with a February 2022 incident involving a Guatemalan immigrant family. A 13-year-old girl associated with the household briefly disappeared, triggering inquiries into child labor within local manufacturing operations. Authorities later confirmed that the minor, along with siblings, had performed factory work for stretches of time, sometimes spanning multiple years. Reuters reported these details, and law enforcement sources corroborated the findings during the inquiry.
Stoneware and witness testimony from factory workers indicate that underage workers may have been employed at the Alabama facility over a wider period. The Alabama Department of Labor has launched a formal investigation into potential illegal hiring practices, signaling a broader audit of labor compliance at the plant and across its supply chain.
Industry analysts note that components produced at SMART Alabama play a role in the broader U.S. automotive sector, where supply chains have faced intensified scrutiny over labor standards, safety, and wage compliance. The case has revived focus on enforcing child labor laws in manufacturing settings and on the duty of multinational automakers to monitor suppliers closely. Policymakers and industry groups are watching the investigation closely as they push for stronger oversight, safer working conditions, and transparent governance across the sector.
Sources familiar with the inquiry emphasize that the core questions focus on whether underage workers were employed in violation of state and federal prohibitions and whether supervisory practices allowed such employment to persist. The larger issue for the industry is how to structure supply chains to prevent child labor, ensure fair wages, and maintain compliance with evolving labor regulations in the United States and abroad. Authorities have indicated that the findings could influence future enforcement actions and supplier governance standards, reinforcing a broader push toward greater accountability and transparency in manufacturing. Reuters, the Alabama Department of Labor, and the U.S. Department of Labor are all cited as key voices in the developing picture of labor practices within automotive supply chains.