Second helping of wage theft: Sydney restaurateur lands in hot water again

A Sydney restaurateur is back in hot water, facing court for allegedly underpaying 82 migrant workers by more than $162,000 – marking their second run-in with the Fair Work Ombudsman (FWO).

In this article, we’ll dive into the details of the case, uncover what led to these alleged violations, and share critical lessons every business owner needs to know to stay compliant.

What happened? Alleged underpayments under the Restaurant Industry Award

Katsuyoshi ‘Ken’ Sadamatsu was a partial owner of Miso World Square, a Japanese restaurant in Haymarket, Sydney. Following an audit, the FWO alleges that between June 2020 and September 2022, workers were paid flat rates of $19 to $27 per hour – well below their legal entitlements under the Restaurant Industry Award 2020.

The alleged underpayments include:

• Unpaid overtime rates.
• Unpaid weekend and public holiday penalty rates.
• Unpaid annual leave entitlements on termination.
• Unpaid split-shift allowances.
• Record-keeping breaches.

Individual underpayments ranged from less than $100 to $19,017. One worker reportedly received $22 per hour as a flat rate when legally entitled to:

• $32 for overtime.
• $27 on Saturdays.
• $48 on public holidays.

Most affected workers were visa holders from Thailand, Indonesia, and Japan. Thirty-six were aged between 19 and 24.

Repeat wage theft allegations: prior breaches increase penalties

This case is particularly serious because of its history.

In 2011, Mr Sadamatsu and his family’s companies entered into Enforceable Undertakings with the FWO after underpaying 180 staff across four Sydney restaurants, totalling $679,000. In August 2020, the FWO formally cautioned Mr Sadamatsu again.

Despite this, the alleged underpayments continued.

The FWO now alleges the contraventions were “known and systematic”, classifying them as serious contraventions under the Fair Work Act – which can trigger penalties up to ten times higher than standard breaches.

Can you be personally liable for wage theft? Yes.

Miso Pty Ltd entered liquidation in 2024 and was deregistered in early 2025. However, the FWO is pursuing action against Mr Sadamatsu personally. This reinforces a critical point for directors and business owners:

Closing a company doesn’t automatically eliminate liability.

Mr Sadamatsu faces:

• Up to $133,200 per breach for alleged serious contraventions.
• Up to $13,320 per breach for other alleged contraventions.
• Full back-payment of wages, plus interest and superannuation.

A directions hearing is listed in the Federal Circuit and Family Court in Sydney in March 2026.

Five wage compliance lessons for hospitality and retail businesses

1. Flat rates vs Award compliance: when is it legal?

Paying a flat hourly rate isn’t compliant unless it demonstrably covers all Award entitlements – including overtime, penalty rates, and allowances. Many business owners don’t realise this until it’s too late.

2. Why hospitality businesses are under FWO scrutiny

Protecting migrant workers and improving compliance in the fast food, restaurant, and café sector are stated long-term FWO priorities. If you operate in this space, you’re on their radar and need to ensure compliance before it’s too late.

3. Repeat breaches and “serious contraventions” explained

If the FWO has previously contacted you about compliance issues, any subsequent breach is treated far more seriously. Ignorance isn’t a defence, especially when business owners have been previously warned.

4. Migrant workers and visa holder protections under Fair Work

All workers in Australia, regardless of visa status, are entitled to the same minimum conditions. Workers are also protected from visa cancellation if they report a breach.

5. Does liquidation protect you from wage theft claims?

Individual liability means business owners can be held personally accountable, even after a company is shut down.

The bigger picture: wage theft enforcement is accelerating

The FWO has filed 171 litigations involving visa holder workers in the eight financial years to June 2025, securing $39 million in penalties.

Enforcement is not slowing down.

The bottom line for business owners

Repeated breaches and intentional non-compliance will eventually catch up with a business. The financial, reputational and personal risks are significant.

For hospitality and retail operators, proactive compliance is far safer – and cheaper –than defending litigation. If you’re unsure whether your pay rates, classifications or records align with the Restaurant Industry Award or Fair Work Act:

Our HR experts can conduct a compliance review, assess your Award coverage and identify underpayment risks – giving you clarity, protection and peace of mind. Contact us here.