South Korean automakers Hyundai and Kia are facing a lawsuit alleging that some of their electric vehicles (EVs) sold to California public agencies were manufactured using child labor and prison labor in facilities located in Alabama and Georgia.
The lawsuit was filed by the national nonprofit Jobs to Move America (JMA) in Los Angeles County Superior Court on or around November 13, 2025.
According to the complaint, the automakers allegedly used staffing agencies to supply children — reportedly as young as 13 — to build Kia vehicles, along with prison labor contracted in cooperation with state correctional agencies in Alabama and Georgia.
The firms are accused of falsely certifying to California authorities that their vehicles comply with applicable labor laws. Specifically, the complaint cites alleged violations of the state’s unfair-competition laws and of the provision under California Public Contract Code § 6108, which prohibits public agencies from purchasing products made using sweatshop labor.
The plaintiffs are seeking a declaratory judgment and injunctive relief that would block sales of the vehicles in California until an independent audit confirms compliance with labor laws.
Hyundai and Kia have denied the allegations. A Hyundai spokesperson stated that the company prioritizes worker safety and compliance with all federal and state regulations, and that it holds its suppliers and partners to the same standards. The statement described the claims as baseless.
Kia similarly denied wrongdoing, asserting that it works only with suppliers that follow applicable labor laws.
Additional Context and Background
- The lawsuit builds on prior, documented accusations against Hyundai’s U.S. supply chain. A 2022 scandal at a Hyundai parts supplier in Alabama found that minors — some reportedly as young as 12 — were illegally working in metal-stamping jobs. That case led to fines under the Fair Labor Standards Act (FLSA) and Alabama state child-labor regulations. (Wikipedia)
- In response to those violations, U.S. labor regulators levied penalties on companies associated with the supply chain, and the practice triggered broader scrutiny of labor conditions in automotive parts manufacturing. (Wikipedia)
- The new 2025 lawsuit expands the scope of alleged misconduct to include not only child and migrant labor, but also prison labor — and draws a direct connection between these labor practices and vehicle procurement by public agencies in California. (OrangeCountyLawyers.com)
- Because public-agency procurement is subject to specific labor-compliance statutes (e.g., California Public Contract Code § 6108), the complaint argues that the automakers’ alleged misrepresentations distort competition and potentially violate public-procurement standards.
What’s at Stake & Potential Outcomes
- If the court grants the injunction sought by JMA, it could effectively bar sales of new Hyundai and Kia EVs to California public agencies until the companies prove compliance with labor standards.
- A successful outcome would set a precedent for greater scrutiny of supply-chain labor practices in the automotive industry, particularly as EV adoption grows and regulators, governments, and consumers increase focus on “ethical manufacturing.”
- Even if the case does not lead to a statewide ban, the reputational and legal risks for both automakers could be significant — possibly triggering audits, supplier restructuring, and tougher internal oversight.
- For public-sector buyers and fleet managers in California, the case may prompt reevaluation of procurement practices and supplier certifications to ensure they meet legal and ethical standards before purchase.
