Sole trader Shannon Duncan ran Paddock to Platter in Keira Street until it closed and was alleged to have underpaid a casual staff member who worked for him between May and December 2021.

The Fair Work Ombudsman issued a compliance notice to Mr Duncan in April 2022 after the worker sought help.

The workplace regulator alleged that Mr Duncan paid the worker below the minimum wage and did not pay weekend penalty rates owed under the Restaurant Industry Award.

After Mr Duncan did not respond to the compliance notice, the Fair Work Ombudsman took the former restaurateur to court, seeking back pay as well as a penalty.

On Tuesday, March 26, the Federal Circuit and Family Court imposed a $5328 penalty and ordered Mr Duncan pay the worker what they were owed, plus interest and superannuation.

Fair Work Ombudsman Anna Booth said the penalty was a warning to employers who ignored compliance notices.

"When Compliance Notices are not followed, we will continue to take legal action. Employers who fail to act on these notices risk facing penalties and back-pay orders," Ms Booth said.

The Fair Work Ombudsman has increasingly targeted underpayment and low compliance in the hospitality sector.

The workplace watchdog has recently taken a harder approach to employers who fail to pay their workers, issuing more compliance notices than in previous years.

The Fair Work Ombudsman issued 2424 compliance notices, returning over $14.8 million to workers in the 2022-23 financial year.