Rebel Sport's parent company has admitted to underpaying its staff by $7.8 million last year.
The fallout follows another high-profile case involving Lush Cosmetics.
In announcing the underpayment during its full year results, Super Retail Group MD Peter Birtles said staff involved in store set-up activities should have received more.
"A remediation program is underway and will be completed in the next financial period.
"This was a genuine mistake that we deeply regret. This business prides itself on how we treat our team members and we have let them down.
"We have taken all possible steps to ensure that affected team members receive what they are owed plus 5.5 per cent interest per year and that this issue does not happen again."
The issue was identified through its own internal processes and external expert advice was sought.
Super Retail Group achieved $128.3 million in net profit after tax in the 2018 financial year.
Total sales for the sports retail department grew 3.2% to $979.2 million, with like-for-like growth hitting 4% in the final quarter.
It converted 68 Amart Sports stores to the Rebel brand during the year, with some impact on sales due to product range consolidation.
The closure of the Rebel Fit business also hit the business $2.7 million.
While increased promotional activity saw average transaction values fall for the year, apparel and footwear categories delivered strong growth when compared to equipment.
Online sales also boomed by 152% on the previous year, with strong uptake of click-and-collect since its launch in October 2017.
“Pleasingly customer net promoter scores have improved through the transition and sales momentum rebounded strongly in the final quarter,” Birtles said.