Warehouse staff are body searched at the end of their shift but the time to take doing this is not paid for.
The report also says staff are punished by having their wages docked if they are just one minute late.
Workers in the Derbyshire warehouse are also "harangued" over the site's tannoy for not working fast enough.
Warehouse workers are also allegedly banned from wearing 802 different types of brands at work.
The Guardian even posted a video onto YouTube that allegedly shows Sports Direct staff being searched:
The newspaper report says by using these methods, it can lead workers to only be paid £6.50 ($9.90) per hour, which is below the statutory minimum wage of £6.70 ($10.20). This in turn can save Sports Direct, which has a market capitalisation of £4 billion ($6 billion), hundreds of millions of pounds per year.
The Guardian's investigation is pretty lengthy but you should check it out here.