Justin Hemmes’ company, Merivale, is facing a hefty $19.25 million payout to former employees following serious allegations of underpayment spanning six years. The prominent hospitality group, which operates over 90 venues across Sydney, encountered a class action lawsuit led by Raymond Boulos and other former employees. The core of their complaint centered on the company’s pay practices from December 2013 to December 2019. Specifically, plaintiffs claimed they were consistently compensated for a standard 38-hour work week despite being required to work at least 50 hours without receiving the mandatory overtime pay.
According to court documents, the lawsuit saw 2,895 former employees register to join the settlement. While Merivale has consistently denied any wrongdoing or breach of labor laws, the settlement will be managed by an appointed administrator, who will ensure the funds’ equitable distribution. A striking sum of $6.3 million has been allocated for ICP Funding, the commercial backers supporting the lawsuit. Registered claimants will soon receive detailed breakdowns of their estimated underpayments and forthcoming payouts. This settlement sheds light on the broader issue of fair labor practices and could spur further actions from other organizations.