Mexican Engineers Win $11.5 Million Settlement in Class-Action Suit Against Hyundai and Kia

Mexico City — A group of 614 Mexican engineers and technical professionals holding TN visas has reached an $11.5 million settlement in a class-action lawsuit against automakers Hyundai and Kia, staffing agency Allswell, and recruiting agency SPJ Connect over fraud and wage theft, according to the Center for Migrant Rights (CDM).

The organization said a judge in Georgia ratified the ruling in favor of the workers, who filed the lawsuit in August 2022 under the Fair Labor Standards Act (FLSA), alleging recruitment fraud and unpaid wages.

The workers were recruited in Mexico for professional and technical positions but were assigned manual labor that differed from what was agreed, leading to accusations of labor exploitation.

Although the defendants denied all allegations and the settlement does not constitute an admission of liability, CDM described it as a significant victory for migrant workers.

The compensation fund, made up of contributions from Hyundai, Kia, Allswell, SPJ Connect and Youngjin Lee, will be distributed among the plaintiffs, with individual amounts ranging from $4,100 to $16,800.

CDM said the case underscores the complexities of the TN visa program, which allows professionals from Mexico and Canada to work temporarily in the United States. According to the allegations, the program was used to recruit Mexican engineers with promises of professional positions that never materialized.

The plaintiffs said they endured excessive work shifts, lower wages and responsibilities completely different from those agreed upon. They also alleged that supervisors threatened them with deportation when they questioned their working conditions, deepening their vulnerability.

The organization, which represented the workers, highlighted the importance of the agreement for the migrant worker community. ‘This is a crucial step to ensure that the rights of migrant workers are respected and that they receive fair pay for their work,’ a CDM representative said.

The case has also fueled debate over how the TN visa program operates under the US-Mexico-Canada Agreement (USMCA) and the need to ensure the program is used fairly and transparently.

CDM said the $11.5 million settlement provides a measure of justice for migrant workers who suffered fraud and wage theft while working at Hyundai Mobis or Kia Georgia plants in the United States.

The legal outcome also serves as a reminder of the importance of protecting migrant workers’ rights and ensuring the labor migration system reflects shared values of respect, fair pay and safety for all workers, the organization said.