Nike recently alleged abuse at Hytex Integrated Bhd., a Kuala Lumpur-based garment manufacturer that owns a factory producing Nike T-shirts. Nike, which is based in Beaverton, Ore., said it had completed its initial investigation into "claims of unacceptable living conditions, withholding of worker passports and garnishing of wages" that began after an Australian television report last month alleged worker mistreatment at Hytex.

In some cases, migrant workers complained that their passports were confiscated by managers, said Hannah Jones, Nike's vice president of corporate responsibility. The practice may have been used by the factory to compel workers to pay their own employment-permit fees, ordinarily paid by the company, she said. Nike said that all current employees will be reimbursed for fees associated with employment while from now on, any such fees "will be paid by the factory as a cost of doing business."

Also, Nike said it found that the majority of housing for employees was "unacceptable." It said all workers will be transferred to new Nike-inspected housing within a month.

Read more in the Wall Street Journal