Six bars owned by the La La Bar Group on the high-profile Chapel Street strip in Prahran and Windsor were raided by the Fair Work Ombudsman on Wednesday evening to ensure compliance with Australian workplace laws.

The Fair Work Ombudsman raided six bars on Chapel Street as part of an investigation into wages. Credit:Joe Armao

Workers were allegedly being underpaid hourly wages, denied workplace entitlements such as overtime and penalty rates and being paid cash-in-hand off the books.

La La Bar Group runs popular bars on the inner south-east Melbourne strip including Wonderland, Electric Ladyland, Lucky Liquor, Blue Bar and Holy Grail.

The surprise audit followed a Fair Work investigation involving interviews with staff and management at the bars, and a review of internal documents including staff pay slips, rosters and employment records.