The Fair Work Ombudsman, Australia’s workplace watchdog, announced it has launched legal action against the operator of a disability support services business operating in southern New South Wales.

Facing court is sole trader Kristy Leanne Tate, the operator of Kreating Real Change Disability Services, based in Crookwell, New South Wales.

The regulator investigated after receiving requests for assistance from two young workers Tate had employed at her business in home care positions.

One worker, then aged 22-23, was employed on a full-time basis between October 2019 and May 2021, and the other, then aged 19-20, was employed on a casual basis between March and June 2021.

A Fair Work Inspector issued a Compliance Notice to Tate in October 2021 after it said that it believed workers had not been paid all entitlements they were owed. The Fair Work Ombudsman alleges Tate, without reasonable excuse, failed to comply with the Compliance Notice, which required her to calculate and back-pay the workers’ outstanding entitlements.

The watchdog is seeking a penalty against Tate for allegedly failing to comply with the Compliance Notice. She faces a penalty of up to AUD 6,660 (USD 4,407). The regulator is also seeking an order for Tate to comply with the Compliance Notice, which includes rectifying the alleged underpayments in full, plus superannuation and interest. A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 22 November 2022.