Samsung Electronics Co. says its audit of Chinese suppliers found illegal labor practices such as excessive overtime.
Samsung said Monday it found instances of Chinese employees working overtime beyond legal hours and being fined for absence or tardiness.
Samsung conducted a four week audit of 105 suppliers in China after allegations it was ignoring illegal labor practices.
China Labor Watch, a New York-based labor rights group, said in August that Samsung's suppliers hired children and working conditions were "inhumane." Samsung said its audit team found no child labor.
During China Labor Watch's investigation earlier this year, a group member posed as a factory worker. The group says it found that the children often carried out dangerous tasks, resulting in injury, and were paid about 70 percent of what adults made for the same amount of work.
Samsung denied claims that its manufactures are breaking labor laws and released this statement to CBS News in August:
"Samsung Electronics has conducted two separate on-site inspections on HEG's working conditions this year but found no irregularities on those occasions. Given the report, we will conduct another field survey at the earliest possible time to ensure our previous inspections have been based on full information and to take appropriate measures to correct any problems that may surface. Samsung Electronics is a company held to the highest standards of working conditions and we try to maintain that at our facilities and the facilities of partner companies around the world."
Samsung said its suppliers must adopt new hiring procedures and it would cancel contracts if child labor is found in future.
It said it will eliminate illegal overtime by the end of 2014.
Samsung is auditing 144 more suppliers in China.