Weather Data Source: New York City 30 days weather

DQ Sisters Face $6 Million Lawsuit Over Wage Violations

Busy Dairy Queen franchise with employees and customers

News Summary

Patty DeMint and Michelle Robey, owners of a Dairy Queen franchise in Medford, New York, are facing a $6 million lawsuit for allegedly violating the state’s ‘Frequency of Pay’ law. The sisters contend they paid employees biweekly, believing it was standard practice. However, recent changes in labor laws led to this significant legal challenge, raising concerns about outdated regulations impacting small businesses. A GoFundMe campaign has been launched by employees to support the sisters amidst their legal battles.

Medford, New York – Long Island sisters Patty DeMint and Michelle Robey, known as the “DQ Sisters,” are facing a staggering $6 million lawsuit due to alleged violations of New York’s “Frequency of Pay” law. The sisters own a Dairy Queen franchise in Medford, which they built using their combined savings and loans, turning it into a popular community hub providing numerous jobs. The lawsuit has raised concerns about outdated labor laws and their implications for small business owners.

The lawsuit claims that DeMint and Robey unlawfully paid their employees on a biweekly basis instead of the mandated weekly schedule outlined in the state law designed to protect manual workers from wage theft. The law, originating during the Great Depression, aims to safeguard those engaged in over 25% of physical labor in their jobs. While the sisters believed biweekly payments were standard practice, a series of legal changes has led to increased lawsuits against businesses mismanaging pay schedules.

Previously, an audit by the New York Department of Labor and their payroll company’s records showed no issues with the sisters’ payment methods. Yet, following a 2019 court ruling that heightened strict liability for businesses regarding wage payments, several companies, including the DQ franchise, began facing lawsuits over similar claims. A former employee of the DQ Sisters alleged serious labor violations in a class action complaint, stating that employees had not been paid overtime and were subjected to long shifts without legal compensation.

In reaction to the lawsuit, DeMint and Robey maintained that they had always paid their staff correctly and found the allegations to be hard to believe. Despite this, the lawsuit resulted in hefty financial implications, with lawyers seeking a settlement that would ultimately require the sisters to pay $450,000. Of this amount, $305,000 was allocated for attorney fees, leaving a minimal payout for former employees, many of whom may receive less than $200 each.

The sisters’ predicament has been part of a greater crisis for business owners across New York, with thousands experiencing similar lawsuits under the antiquated “Frequency of Pay” law. As a response to the increasing number of claims, State Senator Dean Murray has proposed legal reforms aimed at limiting damages for businesses accused of such violations, highlighting that the existing law could be misapplied. In May, Governor Kathy Hochul amended the law to stipulate that businesses would owe only interest on late bimodal payments, a change that unfortunately came too late for the DQ Sisters.

Despite the lawsuit’s outcome, the sisters expressed disappointment that their financial burden was disproportionately higher than that of legal representatives profiting from the case. In light of their situation, a GoFundMe campaign was launched by employees to help DeMint and Robey recover from the financial setback, reflecting the loyalty and support they’ve built within their community.

The issue has drawn attention to the complexities associated with labor law compliance and the often unclear obligations faced by business owners. Robert Fonti from the Suffolk Chambers of Commerce condemned the lawsuit as a “travesty,” emphasizing the need for better education surrounding labor laws to prevent such situations from arising in the future.

Although DeMint and Robey suffered a significant loss, their situation may catalyze further reforms that could protect future business owners from similar legal predicaments. The DQ Sisters continue to advocate for changes that would alleviate pressure on small businesses navigating outdated labor laws and highlight the pressing need for clarity in legislative language concerning employment practices.

Deeper Dive: News & Info About This Topic

HERE Resources

Additional Resources

STAFF HERE NEW YORK WRITER
Author: STAFF HERE NEW YORK WRITER

The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.

Advertising Opportunity:

Stay Connected

More Updates

Exterior view of the autism center in Jamaica, Queens

Jamaica, Queens Welcomes New Autism Center

News Summary Quality Services for the Autism Community (QSAC) is expanding its operations with a new center in Jamaica, Queens. The center will provide essential

Would You Like To Add Your Business?

Sign Up Now and get your local business listed!