The Reject Shop is facing a class action that could see them pay millions of dollars to thousands of allegedly underpaid workers.
Adero Law launched the Federal Court action against The Reject Shop, alleging the retailer underpaid up to 1,400 staffers an average of $40,000 to $65,000 by making them work excessive hours which pushed their hourly pay below minimum wage.
This comes after the suit was floated in April on behalf of seven Tasmanian employees, a case that Reject Store at the time called “immaterial” to its overall profits.
Lead claimant Bradley Cannan was one of these original seven, who alleges he was underpaid a total of $98,000 due to excessive unpaid hours.
“When I sat down and worked out what am I actually getting paid for the hours I’m doing, I was only getting paid roughly what my employees were,” he said.
“I think it’s pretty much across the board. At the time I knew most of the managers in Tasmania and all of them were always working overtime, in excess of their eight hours a day.”
Adero principal Rory Markham said “subject to an appropriate class sign-up, the total underpayments could be well in the millions”, and could cover between 1,000 and 1,400 workers from 450 stores.
“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,” a spokesperson for the retailer said.
“Over the past few months, The Reject Shop has been in contact with Adero Law in relation to seven former employees who claim that they were underpaid during their employment with the company (claim periods relate to February 2016 to April 2021 with one of the claims being for less than $20).
“The Reject Shop has committed that if there has been any under-award payments to team members, this will be corrected. However, Adero has not clarified details of these claims.”
