Fair Work inspectors will raid at least 60 restaurants, cafes and fast food outlets around the King Street dining strip in Newtown this week in response to tip-offs that staff have been underpaid.

Fair Work Ombudsman Sandra Parker said the raids are part of a campaign targeting the hospitality sector, which employs more than 500,000 people.

“Inspectors are speaking with King Street employers, managers and employees to check that workers are receiving their full wages and entitlements," she said. "We are also reviewing records to ensure businesses are complying with important pay slip and record-keeping laws."

Fair Work Ombudsman Sandra Parker. Credit:Department of Jobs and Small Business

Ms Parker said cheap eateries in busy precincts operate in a particularly competitive environment, with labour representing a significant cost. "When low menu prices seem too good to be true, customers should stop and consider – are we paying enough to cover workers’ minimum wages?” she said.