It's Hard Out There For the Kids

Child labor abuse, not to be confused with child abuse, is when children are exploited through any form of work that deprives them of their childhood. Like every rule there are exceptions, but those are few and far between and also contain some religious/cultural exceptions (ie: the Amish) as well.

We're sure you're wondering "Who is in trouble this time?" and we have an answer for you. Korean-based car giant Hyundai is in trouble for violating American child labor laws in 2022. More specifically, following an investigation, it was found that a supply plant based in Alabama that supplies parts for assembly lines has been suspected of child labor violations. This isn't the first time that a subsidiary of Hyundai in Alabama has been suspected of child labor violations. In July of 2021, a news service reported underage workers as young as 12 to be working at a metal stamping plant that is listed by Hyundai in a corporate filing as a subsidiary. Initially, the company said that it doesn't tolerate illegal employee practices at its facilities, but it also denied that it knowingly employed anyone who is ineligible to work. Since the incident in 2021, Hyundai claims to have visited or held talks with all 29 supply plants across Alabama to conduct audits to ensure that no minors are working in the factories, but it was reported by a news outlet that once federal officials started to get involved, staffing firms started firing any "young-looking foreign workers" from their staff.

So, why is this relevant now if the issue with child labor violation occurred last year and the year before? Because Congress is making a big deal of it now. Apparently 33 members of Congress are trying to get the U.S. Labor Secretary to punish those responsible for the alleged child labor abuse in automotive plants following the investigation previously mentioned. For the record, that investigation was done by Reuters and though it didn't seem to be taken seriously at the time, Congress is making it a big deal now. The representatives of Congress who are asking for action are demanding immediate action and for those who are responsible to be held accountable to the fullest extent of the law. What would be the fullest extent of the law that could be applied in this case? Well, that was unclear to us even with a bit of research.

Can minors work? According to the Department of Labor (DoL) a child as young as 14 can work, but there are some conditions that must be met. Really, it's the Fair Labor Standards Act (FLSA) that defines that, but the DoL handles reporting, enforcement, and investigation. So yes, minors are allowed to work, but they can't work full shifts, and learning and development have to be the focal points of their lives. A minor is permitted to work 3 hours during a school day and 18 hours total per week. For the record, this only applies to work in an official capacity so you're fine if you want your kid to do regular work like cleaning/chores. 

For the latest in tech, finance, and business news, don't miss our podcast at https://www.arbitragetrade.com/podcasts