{"id":580102,"date":"2026-04-02T05:41:10","date_gmt":"2026-04-02T05:41:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/580102\/"},"modified":"2026-04-02T05:41:10","modified_gmt":"2026-04-02T05:41:10","slug":"federal-court-class-action-filed-against-kmart-alleges-systemic-wage-underpayment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/580102\/","title":{"rendered":"Federal court class action filed against Kmart alleges &#8216;systemic&#8217; wage underpayment"},"content":{"rendered":"<p class=\"paragraph_paragraph___QITb\">A class action has been filed in the Federal Court of Australia against retail giant Kmart, alleging &#8220;systemic&#8221; wage underpayment of its salaried store managers.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The case centres around a claim the retailer failed to comply with the Fair Work Act and relevant industry awards over the past six years.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Specifically, that Kmart managers were routinely required to work &#8220;well beyond&#8221; their rostered hours without receiving overtime rates, penalty rates, or prescribed allowances.<\/p>\n<p class=\"paragraph_paragraph___QITb\">According to the statement of claim, staff were pressured to perform &#8220;off-the-clock&#8221; work before and after shifts, work through meal breaks, and even handle administrative tasks from home.<\/p>\n<p class=\"paragraph_paragraph___QITb\">In some instances, managers reportedly worked up to 60 hours per week during peak periods without any additional compensation.<\/p>\n<p><img decoding=\"async\" alt=\"A generic Kmart sign on a shopping centre.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/db710b2878ae5196657f7f917d07d46a.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The lead applicant worked at three Brisbane locations as a store operations manager. (ABC News: Elizabeth Pickering)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Lead applicant Jordana Williamson, a former full time Kmart store operations manager who worked at several Brisbane locations, alleges the company&#8217;s internal systems failed to accurately reconcile annual salaries with actual hours worked.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The proceeding concerns only salaried store managers and not casual or part-time team members.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The case comes amid increased scrutiny of how large retailers pay salaried managers under the retail award system.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2025-09-08\/coles-woolworths-underpayment-court-judgement-fallout\/105747578\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Financial fallout of Woolworths, Coles underpayments climbs<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Supermarket giants Coles and Woolworths expect to spend hundreds of millions of dollars more to repay staff the companies underpaid, following a legal judgement.<\/p>\n<p class=\"paragraph_paragraph___QITb\">In September 2025, the federal court found <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2025-09-08\/coles-woolworths-underpayment-court-judgement-fallout\/105747578\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/106525366\" rel=\"nofollow noopener\" target=\"_blank\">Coles and Woolworths had unlawfully relied on averaged or &#8220;annualised&#8221; salaries<\/a> without properly reconciling those salaries against award entitlements in each pay period, and without maintaining accurate records of actual hours worked.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The court made it clear that annualised salaries did not displace award obligations and that paying employees based on roster schedules, rather than time actually worked was insufficient.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The allegations before the federal court have not been proven and Kmart has not yet filed a defence.<\/p>\n<p class=\"paragraph_paragraph___QITb\">In a statement, a spokesperson for Kmart said it was aware of the proceedings.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;We take these matters very seriously,&#8221; it said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Kmart is committed to its team member being paid correctly for the work they perform. As this matter is before the court and we have not yet had an opportunity to review the claims, it is not appropriate for us to comment at this time.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"A class action has been filed in the Federal Court of Australia against retail giant Kmart, alleging &#8220;systemic&#8221;&hellip;\n","protected":false},"author":2,"featured_media":580103,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,99,36423,70,7971,284379],"class_list":{"0":"post-580102","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-class-action","12":"tag-federal-court","13":"tag-kmart","14":"tag-wage-underpayment"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/580102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=580102"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/580102\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/580103"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=580102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=580102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=580102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}