One of Sydney’s largest hospitality groups, Merivale, has agreed to pay $19.5 million to settle a class action alleging widespread underpayments.
A class action is a type of lawsuit where many people are represented by one entity.
Almost three thousand people registered to take part in the lawsuit, which alleged Merivale underpaid venue staff from 2013 to 2019.
Settling the case means no allegations against Merivale will be tested in court.
Merivale
Hospitality giant Merivale operates over 90 “brands and venues,” primarily based in Sydney.
In a separate suite of allegations, the ABC published an investigation earlier this year based on interviews with former staff and customers at Merivale venues, alleging the company has a culture that exploits women and permits drug use.
The company denies the allegations.
Merivale is currently being investigated by two NSW Government bodies.
Class action
In late 2019, Adero Law filed a class action in the Federal Court alleging widespread underpayment by Merivale.
Former employees alleged they were paid for 38-hour weeks but were working at least 50-hour weeks without overtime.
It was also alleged that the pay agreement used by Merivale at the time was not valid under the Fair Work Act.
Settlement
Merivale will now pay $19.5 million to the class action members, avoiding a court trial.
Group members had previously rejected an offer from Merivale on the grounds that it was “too little”.
Adero Law will be responsible for sharing the settlement with the class action members.
TDA contacted Adero and Merivale for comment but did not receive a response at the time of posting.
