A significant class action lawsuit has been launched against retail giant Kmart, with salaried managers alleging systematic underpayment and excessive workloads as part of a cost-saving strategy. The legal action, filed by Adero Law in the Federal Court on Tuesday, is spearheaded by former manager Jordana Williamson, who represents a broader group of complainants.
Allegations of Unpaid Overtime and Excessive Hours
Ms Williamson, who began working as a salaried manager at Kmart stores in Brisbane in February 2019, claims she was forced to work beyond her rostered hours without proper compensation. She alleges that she had to start early, finish late, and complete administrative tasks at home to meet daily demands. During busy periods, she reportedly worked up to 60 hours per week but was not paid overtime or other entitlements as mandated under the Fair Work Act.
Scope of the Class Action
Documents reviewed indicate that the class action encompasses all full-time salaried managers employed at Kmart stores over the last six years. Notably, the lawsuit excludes casual workers and those on hourly rates, focusing solely on salaried positions. Adero Law stated in a press release that managers were routinely required to perform work outside their paid hours without receiving overtime, penalty rates, or prescribed allowances.
Specific allegations include managers being compelled to undertake pre-shift and post-shift duties, work through meal and rest breaks, and handle tasks outside their scheduled hours. The law firm emphasised that these practices were not isolated incidents but part of a broader pattern of exploitation.
Kmart's Response and Legal Context
It is important to note that these allegations have not been proven in court, and Kmart has yet to file a formal defence. A spokesperson for Kmart told media outlets that the company is committed to ensuring team members are paid correctly for their work. However, due to the ongoing legal proceedings, they declined to comment further until reviewing the claims.
Broader Retail Industry Implications
This case against Kmart follows a recent Federal Court ruling in September 2025, which found that Coles and Woolworths had unlawfully used annualised salaries without properly tracking actual hours worked or awarding overtime. Adero Law highlighted that Kmart now joins a growing list of Australia's major retail employers facing similar accusations.
The law firm criticised what it described as a "strategic ignorance" in Kmart's business model, alleging that the company failed to monitor managers' actual working hours despite utilising advanced technology for inventory and sales tracking. Adero Law argued that this oversight has financial consequences, unfairly burdening employees who can least afford it.
Call for Accountability and Fair Wages
Adero Law stressed that the affected managers are not seeking excessive payouts but simply demand award-minimum wages for the hours they actually worked. The firm pointed out that Kmart, along with Coles and Woolworths, represents a "trifecta" of Australia's largest private sector employers, all of which have faced allegations of similar practices.
In conclusion, this class action underscores ongoing concerns about wage theft and worker exploitation in the retail sector. As the legal process unfolds, it will test the accountability of major corporations and their adherence to employment laws designed to protect salaried staff from unfair labour practices.
