More than 500 current and former workers employed across 23 regional supermarkets in South Australia are covered by the backpay.
They will receive, on average, almost $11,000 worth of backpay, according to the SDA.
"The SDA is proud to have secured $5.5 million in backpay and deliver wage justice for workers at Eudunda Farmers supermarkets," SDA Secretary Josh Peak said in a statement.
"This is a massive outcome for these workers and will be life-changing for many of them."
Peak said the case was "one of the largest retail underpayment cases in South Australian history."
It started out in 2021 with 64 current and former employees arguing they were underpaid and misclassified, ABC News reported.
Underpayment claims included misclassifying workers, incorrect and unpaid overtime, breaching minimum shift rules, and not correctly paying allowances.
The employees were seeking more than $1 million worth of backpayments at the time, but it grew to more than $5 million as more workers joined the case.
"What started out as just a few workers speaking up about their pay has now turned into 500 workers being compensated," Peak said.
According to the parties' joint statement, Eudunda Farmers Limited reviewed workers' classification levels, as well as backpaid and increased their pay to comply with award requirements after the SDA started the case.
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