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Shark Tank start-up facing court over alleged staff underpayments

Fair Work Ombudsman takes action over business which featured in TEN's Shark Tank.

Last year NSW Fair Trading warned consumers to steer clear of HerFashionBox.com, a start-up which featured last year on TEN’s Shark Tank.

Now investigators from the federal workplace watchdog have alleged owner Kathleen Purkis undercut the pay of three employees by more than $40,000. It is alleged she either grossly underpaid workers or paid them nothing at all. Documents have been filed in the Federal Court.

“The law prohibits the exploitation of workers by characterising them as ‘interns’ or as doing ‘work experience’ when they are fulfilling the role of an employee,”Fair Work Ombudsman Natalie James said.

“Such workers must be paid minimum employee entitlements.”

Shark Tank‘s Janine Allis and Andrew Banks agreed to chip in $200,000 in exchange for 16% of the business last year.

Purkis did not respond to requests for comment by either News Corp or Fairfax.