The Reject Shop has dismissed a class action lawsuit claiming underpayments to staff as being for “immaterial” amounts.
The class action was launched by Adero Law, and alleged that, between February 2016 and April 2021, seven former Reject Shop employees were underpaid.
The Reject Shop has said in a statement that “any under-award payments to team members, will be corrected” and that one of the signatories to the class action is claiming less than $20.
“To date, The Reject Shop has not received a copy of Adero’s class action,” the company said.
However, based on the previous correspondence from Adero, The Reject Shop expects any exposure to be immaterial.
“The Reject Shop takes its obligations to team members seriously and has processes in place to monitor compliance with employment laws, including external annual reviews.”
Adero said the discount retailer underpaid up to 1,400 employees an average of $40,000 to $65,000.
Adero principal Rory Markham said it was “filling a regulatory gap in areas where unions and the Fair Work Ombudsman (FWO) were not taking action and employers had an incentive not to self-report.”
