OTR (On The Run) has agreed to pay nearly $6 million to settle wage underpayment claims by its workers.
In a report by ABC News, the South Australia convenience store chain will pay $5.8 million dollars to settle the class action filed against it by staff.
As part of the proposed settlement, OTR will not be made to admit any liability or wrongdoing regarding the underpayment complaint. If approved by the court, OTR’s lump-sum payment will be divided among all registered plaintiffs in the class action.
OTR has been accused of not paying overtime, underpaying workers, and misusing its own traineeship program to cut workers' pay. The alleged violations occurred between 2014 and 2020 and involved thousands of staff across the company’s South Australia branches.
In May 2020, 1,050 OTR employees filed a class action in court against OTR owner Shahin Enterprises.
Representing the plaintiffs, Adero Law said an estimated 8,000 former and current OTR employees were eligible to join the complaint when it was first brought to court in May 2020.
The law office also said that Shahin Enterprises could be liable to pay back workers between $50 million and $70 million in unpaid wages and entitlements.
OTR has denied the wage underpayment allegations.