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Sisters Face Legal Challenges Over Pay Frequency Law

Dairy Queen in Medford facing legal challenges

News Summary

Patty DeMint and Michelle Robey, owners of a Dairy Queen in Medford, are embroiled in a multimillion-dollar lawsuit for violating New York’s pay frequency laws. A former employee’s claims led to a class-action lawsuit, pushing the sisters to settle for $450,000. The challenges they faced highlight the complexities of employment regulations and the impact on small businesses. Following their struggles, New York Governor Kathy Hochul amended the pay frequency laws, but too late to help the sisters, prompting discussions on the need for clearer legal guidelines.

New York – Patty DeMint and Michelle Robey, sisters and owners of a Dairy Queen in Medford, Long Island, are facing significant legal challenges after being involved in a multimillion-dollar lawsuit regarding compliance with pay frequency laws. The sisters were sued for violating New York’s “Frequency of Pay” law, which stipulates that “manual workers” must be compensated weekly. Initially, DeMint and Robey paid their employees biweekly, a common practice in the food service industry.

The legal troubles began when a former employee, who had been laid off, filed a lawsuit claiming she was owed overtime pay. This case eventually expanded into a class-action lawsuit, drawing attention to the obligations of employers under the state’s pay frequency regulations. Despite believing they had paid their workers fairly, DeMint and Robey were taken by surprise by the legal actions initiated against them.

In 2019, a court ruled that manual workers could pursue double damages when improperly paid, resulting in a surge of similar litigation across various businesses in New York. The sisters estimated their total potential liability at $6 million as the case unfolded. In a turn of events, following considerable public criticism and facing various legal challenges, DeMint and Robey agreed to settle the lawsuit out of court for $450,000.

Out of the total settlement amount, approximately $305,000 is expected to go toward legal fees, leaving only a minor portion for the affected former employees. This financial outcome indicates the severe constraints faced by small business owners when dealing with similar legal issues.

DeMint and Robey described their Dairy Queen franchise as a family-run business dedicated to providing employment opportunities for marginalized groups, including individuals with criminal records or disabilities. They have committed to improving the clarity of pay frequency laws to minimize the risk of similar situations impacting other small businesses.

In response to the legal challenges faced by DeMint and Robey, New York Governor Kathy Hochul recently amended the pay frequency law. The change limits damages for businesses that adhere to biweekly payment structures. However, these updates came too late to benefit the sisters in their legal fight, illustrating a gap in legislative protection for small businesses amid evolving legal standards.

In an effort to meet the financial demands of their settlement and to sustain the operation of their Dairy Queen, DeMint and Robey launched a GoFundMe campaign. This initiative reflects their determination to not only resolve their immediate financial burdens but also to continue to provide a source of employment and community engagement in Medford.

The sisters have received praise from local officials and business organizations, which have recognized them as advocates for small businesses facing disproportionate legal challenges. The financial and operational difficulties they have encountered underlines the importance of clear legal guidelines to protect businesses from unforeseen liabilities stemming from litigation related to wage policies.

Their case shines a light on challenges small business owners can face regarding the definition of “manual worker” and highlights the ambiguities present in state law. These complexities contributed significantly to the sisters’ legal troubles and exemplify the urgent need for transparent regulatory frameworks aimed at supporting local businesses while ensuring worker protections.

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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.

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