EV Automakers Accused of Enlisting Prison and Child Labor

South Korean auto giants Hyundai and Kia are accused of selling electric vehicles (EVs) to California public agencies that were manufactured with child labor and prison labor in Alabama and Georgia.

The national nonprofit Jobs to Move America (JMA) filed the lawsuit in Los Angeles Superior Court on or about Nov. 13.

“Hyundai has gone to great lengths to hide its unconscionable labor practices and to continue them when it’s had the power all along to stop,” said JMA attorney Brian Olney – Partner at Hadsell Stormer Renick & Dai.

Both automakers have denied the claims. The legal action seeks declaratory and injunctive relief to compel the automakers to clean up their alleged labor practices, which were uncovered after an extensive investigation.

“Some of the information about Hyundai’s labor practices come from government investigations and government enforcement actions,” Olney told OrangeCountyLawyers.com. “That’s part of the reason we know about some of these issues.”

The suit alleges the automakers are using children as young as 13 provided by staffing agencies to build Kia vehicles as well as prison labor obtained in cooperation with the states of Alabama and Georgia.

However, Hyundai spokesperson Michael Stewart denied the allegations as baseless.

“We prioritize the safety and well-being of our workforce above all else and remain fully compliant with all federal and state regulations,” Stewart told OrangeCountyLawyers.com. “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.”

Stewart added that from its U.S. headquarters in Fountain Valley in Orange County, Hyundai has been a driver of American growth and innovation for forty years.
Hyundai recently announced in an August 2025 press release that it is creating 25,000 new U.S. jobs as part of a $26 billion investment commitment.

“We value our long-standing relationship with the state [of California],” Stewart said. “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 parent company for Hyundai and Kia is headquartered in South Korea with business entities in the U.S. For example, Kia has several dealerships in Orange County.

Kia America Denies Allegations of Child & Prison Labor

“Kia America denies the allegations in the complaint and is committed to working only with suppliers who comply with federal, state, and local labor laws,” Kia America spokesperson James Bell told OrangeCountyLawyers.com.

The complaint further accuses the car companies of violating California’s Unfair Competition Law and California Public Contract Code § 6108.
by falsely certifying to the state of California that their vehicles comply with state and federal law.

The California Public Contract Code § 6108 bans public agencies from purchasing vehicles made with sweatshop labor.

“This deception and the labor practices it aims to conceal misleads California public agency-consumers into purchasing Hyundai and Kia vehicles that are made contrary to their standards, policies, and values, and harms competition among other automotive corporations in the State,” the complaint states.

Hyundai and Kia are the third largest sellers of EVs in the United States after Tesla and Ford, according to the lawsuit, and from 2020 to 2024, their share of the U.S. electric vehicle market more than tripled.

The plaintiff wants the court to grant an injunction prohibiting sales of the cars in California until an independent third-party audit verifies that the alleged abusive labor practices have ended.

“The ultimate goal is not to keep Hyundai or Kia out of California,” Olney added. “It’s to force them to just follow the law that applies to every other car manufacturer in the country, and clean up their labor practices.”