Workers had said they worked 60 hours or more a week, with up to 10 hours as unpaid overtime. They also said the factory does not pay into the government's social security fund, leaving the workers and their dependents without health care or pensions.
The factory owner also agreed to enroll workers in the social security system, NLC said, and will establish a system to track workers' hours to make sure they are fully paid for overtime and receive vacation benefits.
The factory's 500 workers, roughly 70 percent of whom are women, earn 90 cents to $1.12 an hour, said Charles Kernaghan, NLC's director.
Changes are already being made based on complaints from the 500 workers, the majority of them young women. He said toilet paper and purified water are now readily available, and managers have been warned to stop humiliating workers.