Australia’s Fair Work Ombudsman recovered AUD 281,729 (USD 186,448) for 305 underpaid food outlet employees in Newcastle, New South Wales, following surprise inspections.

Fair Work inspectors investigated 43 businesses in Newcastle’s fast food, restaurant and café sector, mostly ‘cheap eats’ venues. The inspections were prompted by information from a range of sources, including anonymous reports.

Of 41 investigations finalised, the Ombudsman found workplace law breaches in 73% of food outlets (30 businesses). The most common breach was underpayment or failure to pay penalty rates (29 businesses), which variously included evening and night rates, and weekend and public holiday loading, as well as casual loading, followed by underpayment of minimum wages for ordinary hours (19 businesses).

The highest amount recovered from any one business was AUD 82,583 (USD 54,653) for two casual fast food workers who were not paid their casual minimum wages and their public holiday and weekend loading.

Following investigations, the Ombudsman issued 26 Compliance Notices, which resulted in recoveries of AUD 277,006 (USD 183,322) for 302 workers. Some employers rectified underpayments without the use of an enforcement tool. Eight Infringement Notices for payslip and record-keeping breaches resulted in AUD 22,497 (USD 14,888) in fines paid. Two businesses remain under investigation.

Of the investigations, the most common breach was underpayment or failure to pay penalty rates (29 businesses), which variously included evening and night rates, and weekend and public holiday loading, as well as casual loading, followed by underpayment of minimum wages for ordinary hours (19 businesses).

Fair Work Ombudsman Anna Booth said improving compliance in the fast food, restaurant and café sector was an ongoing priority for the regulator.

“These disappointing Newcastle findings are part of a national food precincts program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” Booth said. “Employers must follow all wage laws, including penalty rates which generally serve as compensation for those working at times when most people are not. Those doing the wrong thing are being found out and held to account.