A report says it found routine abuse of overtime rules at one of Apple's suppliers in China

Apple China sales slump

A new report from watchdog group China Labor Watch (CLW) says Apple's overtime policies are routinely violated at one of the third-party factories where iPhones are made.

The CLW report says many workers at Pegatron, which is based in China, are working more hours than Apple allows.

Apple's policy says supply chain workers can't work more than 60 hours per week and should have at least one day per week off. CLW found several instances where workers clocked more than 80 hours of work per week and some cases where interns were able to get overtime pay even though they aren't allowed to.

According to CLW, Pegatron workers feel forced to go for overtime because base wages are low and they need the overtime pay to get by.

CLW says it interviewed approximately 100 Pegatron workers in 2015 and 2016 for the report and reviewed their pay stubs.

In April, Bloomberg reporter Shai Oster visited Pegatron and wrote that the factory now institutes ID checks to make sure workers don't take too much overtime. CLW's report claims Oster's visit was carefully crafted and didn't allow access to areas where workers abused the overtime system.

Apple and Pegatron did not immediately respond to requests for comment.

You can read the full CLW report here.

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