News Summary
Patty DeMint and Michelle Robey, known as the DQ Sisters, have settled a $450,000 lawsuit regarding alleged wage law violations at their Dairy Queen franchise in New York. The lawsuit, initiated by a former employee, claimed that the sisters paid staff biweekly instead of weekly, violating state pay laws. Despite claiming ignorance of these laws, the sisters settled out of court, with most of the payout consumed by legal fees. The sisters are now advocating for amendments to wage laws to protect businesses against similar claims.
Meaford, New York – Patty DeMint and Michelle Robey, widely recognized as the “DQ Sisters,” have settled a significant lawsuit for $450,000 after facing a multi-million dollar claim regarding alleged wage law violations at their Dairy Queen franchise. This legal issue stemmed from accusations that the sisters failed to adhere to New York’s Frequency of Pay law, which mandates that “manual workers” be paid weekly.
The lawsuit was initiated in 2019 by a former employee who claimed the sisters had violated wage regulations by paying employees biweekly. Both DeMint and Robey maintained that they were unaware of the law and had followed the guidance of previous state audits without any flagged concerns regarding their payroll practices. However, the claims in the lawsuit also included allegations of wage withholding and overtime pay violations, echoing a growing trend of similar legal actions against businesses throughout New York.
Labor lawyer Howard Wexler commented on this wave of lawsuits, suggesting they often use technical violations to target businesses. The DQ Sisters were ultimately compelled to settle the lawsuit out of court for $450,000, from which legal fees consumed about a third of the payout, leaving former employees with approximately $200 each.
The resolution of the lawsuit has been a source of frustration for the sisters, who expressed concerns that the settlement financially favored the lawyers more than their former employees. In a display of community support, an employee launched a GoFundMe campaign to aid the DQ Sisters, highlighting their history of creating a nurturing work environment. The sisters have been recognized for their compassionate approach to employee assistance, including helping staff financially during difficult times and even providing Christmas gifts for employees’ children.
Amendments to Wage Law
In light of the lawsuit’s implications, the DQ Sisters engaged with state lawmakers to promote changes in the Frequency of Pay law. The amendments now afford businesses that pay employees biweekly only interest liabilities on late wages, rather than exposing them to large payout demands for technical payroll violations. This legislative shift was made to offer better protections to businesses and to streamline the compliance process related to payroll laws within New York.
Wage Theft Issues Nationwide
The Fair Labor Standards Act (FLSA) serves as a national framework aimed at ensuring fair pay and overtime compensation for workers. Nevertheless, wage theft remains a pressing issue across various industries in the United States. The Economic Policy Institute reports that efforts to combat wage theft have successfully recovered over $1.5 billion in unpaid wages from 2021 to 2023.
Legal experts advise workers to maintain meticulous records of their hours worked and to promptly report any discrepancies to their employers to mitigate risks of wage theft. They also recommend that businesses stay informed regarding payroll laws to avoid potential penalties and legal claims.
Conclusion
The DQ Sisters’ experience reflects a larger conversation surrounding wage law compliance and the implications of technical violations in the workforce. As the community rallies behind the sisters, their story exemplifies the intersection of labor law challenges and the importance of fair practices in the workplace.
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Additional Resources
- The New York Times: Dairy Queen Lawsuit
- Wikipedia: Fair Labor Standards Act
- Law360: New York Sisters Settle Wage Lawsuit
- Google Search: Wage Violation Lawsuits New York
- Bloomberg: Dairy Queen Franchisees Settle Lawsuit
- Encyclopedia Britannica: Wage Theft
Author: STAFF HERE NEW YORK WRITER
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