Retail giant Kmart is facing a major legal challenge after a class action was filed in the Federal Court of Australia, accusing the company of “systemic” underpayment of its salaried store managers over a six‑year period.
The lawsuit alleges Kmart failed to comply with the Fair Work Act and relevant industry awards, routinely requiring managers to work far beyond their rostered hours without receiving overtime, penalty rates or mandated allowances. According to the statement of claim, managers were pressured to perform off‑the‑clock duties, including working before and after shifts, skipping meal breaks, and completing administrative tasks from home.
Some managers reportedly worked up to 60 hours a week during peak trading periods without any additional compensation. The claim argues that Kmart’s internal payroll systems failed to properly reconcile annual salaries with the actual hours worked, leaving salaried managers significantly out of pocket.
The lead applicant, Jordana Williamson, a former full‑time store operations manager who worked across several Brisbane locations, says the company’s systems consistently underestimated the true workload required to run stores effectively.
The class action applies only to salaried store managers, not casual or part‑time team members. It comes at a time of heightened scrutiny over how major retailers pay their salaried staff, with several large companies already under investigation for similar award compliance issues.
As the case progresses, it is expected to shine a spotlight on long‑standing concerns about unpaid overtime and the pressures placed on frontline retail leaders across the country.
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