a shop employing workers at low wages, for long hours, and under poor conditions.

1865–70; sweat + shop

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World English Dictionary
sweatshop (ˈswɛtˌʃɒp)
a workshop where employees work long hours under bad conditions for low wages

Collins English Dictionary - Complete & Unabridged 10th Edition
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American Heritage
Cultural Dictionary

sweatshop definition

A small factory or shop in which employees are poorly paid and work under adverse conditions. Sweatshops were especially common in the garment industry during the early twentieth century.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Example sentences
Many of the companies directly running sweatshops are small and don't have much
  name recognition.
We do not generally relegate capitalism to the shelf of unspeakable evils
  whenever human trafficking or sweatshops are unearthed.
Counterfeiting is as diverse as any legal business, ranging from back-street
  sweatshops to full-scale factories.
If you're interested in overpriced trinkets churned out in sweatshops, take
  your cabby's offer.
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