Federal court class action filed against Kmart alleges 'systemic' wage underpayment

A class action lawsuit has been filed in the Federal Court of Australia against Kmart, alleging “systemic” wage underpayment of its salaried store managers over the past six years. The claim asserts Kmart failed to comply with the Fair Work Act and relevant industry awards by requiring managers to work beyond their rostered hours without proper overtime, penalty rates, or allowances. Staff allegedly faced pressure to work “off-the-clock” before and after shifts, during meal breaks, and even from home, with some managers reportedly working up to 60 hours per week without additional compensation.

The lead applicant, Jordana Williamson, a former store operations manager, alleges the company’s systems failed to accurately track hours worked against annual salaries. This case follows a September 2025 federal court ruling against Coles and Woolworths for similar practices, emphasizing that annualised salaries do not supersede award obligations and accurate timekeeping is essential.

Kmart has acknowledged the proceedings and stated it takes the matter seriously, but declined to comment further as the case is before the court and they have not yet reviewed the claims. The allegations remain unproven, and Kmart has yet to file a defence.

(Source：ABC (Australian Broadcasting Corporation))