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    Home » Dairy Queen Labor Lawsuit New York: How Two Sisters Took on a $6 Million Legal Blizzard
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    Dairy Queen Labor Lawsuit New York: How Two Sisters Took on a $6 Million Legal Blizzard

    foxterBy foxterOctober 11, 2025No Comments6 Mins Read
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    Patty DeMint and Michelle Robey had no idea that their Medford Dairy Queen would be at the heart of one of the most well-known labor law disputes in New York. Locally referred to as the “DQ Sisters,” their establishment was more than just a place to get dessert; it was a community center where staff members were treated like family and second chances were liberally given. However, what started out as an entrepreneurial dream evolved into a legal conflagration that tried their fortitude and altered state law.

    The sisters’ ordeal started in 2019 when a former worker sued them, alleging they had broken New York’s “Frequency of Pay” law, a little-known law that mandates weekly compensation for manual laborers. They were caught off guard because they had always paid their team every two weeks. Robey recalled the moment they found out about the suit and remarked, “It was unbelievable.” We had made timely and equitable payments to everyone. Nobody had ever warned us that we were acting improperly.

    Originally enacted during the Great Depression, the law was designed to shield workers from unfair payment delays. Businesses throughout the state were caught up in its ambiguous definition of a “manual worker,” which was defined as anyone who spent more than 25% of their working hours performing physical labor. Lawsuits against small employers became more common after a 2019 court decision doubled damages for violations.

    Table: Patty DeMint & Michelle Robey – Key Information

    FieldDetails
    NamesPatty DeMint and Michelle Robey
    ProfessionSmall Business Owners / Dairy Queen Franchise Operators
    Franchise LocationMedford, Long Island, New York
    Established2017
    Legal IssueViolated New York “Frequency of Pay” law
    Lawsuit Filed2019, Settled in 2025
    Settlement$450,000 (of which $305,000 went to legal fees)
    Initial Claim$6 million lawsuit
    AllegationsPaying biweekly instead of weekly, violating wage law
    ReferenceCBS News – Dairy Queen Sisters Face $6M Lawsuit
    Dairy Queen Labor Lawsuit New York
    Dairy Queen Labor Lawsuit New York

    A $6 million lawsuit unexpectedly confronted the sisters’ Dairy Queen, a beloved local business founded on loans and life savings. “We would have been destroyed,” DeMint acknowledged. “It was about survival, not just about money.” The fact that neither their payroll company nor a state audit had identified the problem added to the agony of the situation. “We underwent formal inspections,” Robey continued. “Not a single person brought up the pay frequency law.”

    Business advocates and media outlets took notice of the case right away. Opportunistic firms looking for class-action payouts have weaponized the law, which legal experts have referred to as a “technical trap.” Howard Wexler, a labor lawyer, claimed that it “turned an old protection into a profit mechanism.” Similar lawsuits had been filed against thousands of New York businesses by 2025; many of them had to reach settlements in order to stay out of bankruptcy.

    The sisters quickly gained widespread sympathy. Their workers, whom they had helped through difficult times, came together in support of them. “They’ve always supported us,” a manager said with tears in her eyes. “Seeing decent people punished for something so insignificant is absurd.” Legislators soon started paying attention after the local Chamber of Commerce referred to the lawsuit as “a travesty.”

    Dean Murray, a state senator, intervened and introduced a bill to change the law. He claimed that they were being penalized for being good employers. “They gave their employees full compensation. They were let down by the system. An amendment limiting damages for pay frequency violations to interest owed rather than double wages was signed by Governor Kathy Hochul in May 2025. The Dairy Queen case served as the direct inspiration for this important legislative change.

    Unfortunately for the sisters, the change was made too late. They agreed to $450,000 in order to prevent complete financial collapse. In a cruel turn of events, more than two-thirds of that sum, or $305,000, was spent on legal fees. Less than $200 was given to each employee. It’s frustrating,” DeMint remarked. “No one profited more from this than the lawyers. We paid a high price for a law that ought to have been changed years ago.

    The sisters, however, resisted allowing the incident to define who they were. Instead of retreating, they used their experience to further their cause. In order to encourage small business owners to remain informed and advocate for more transparent labor laws, they started attending community events and meeting with local business associations. Their narrative served as a catalyst for change. “It would be worth every restless night if we could spare even one family from experiencing this,” Robey said.

    Their situation is especially representative of a growing problem small businesses encounter: navigating laws that were created for a bygone era. The “Frequency of Pay” law felt noticeably out of date because it was written before electronic banking or payroll systems were invented. However, it came with crippling financial penalties that few contemporary employers were aware of. The battle of the DQ Sisters revealed how these laws, despite their good intentions, can become dangerously out of step with modern practice.

    There was no mistaking the irony. These were not corporate villains; rather, they were two women who had a reputation for giving meaningful work to people that others had overlooked, such as teenagers, senior citizens, and ex-offenders. They had established a community-based business, paid taxes, and complied with all applicable regulations. However, their livelihood was almost destroyed by a single, ignored provision in an 80-year-old law.

    The way that people talk about labor compliance has changed significantly as a result of their bravery in speaking out. Payroll companies have improved communication regarding compliance updates since their case, and many small businesses now conduct more thorough policy audits. According to Robert Fonti of the Suffolk Chambers of Commerce, “they made the invisible visible.” “Their suffering resulted in advancement.”

    In addition to promoting legal reform, the sisters’ story highlights a universal human quality: the will to keep going when all else seems lost. Their Dairy Queen is still open and serving blizzards and smiles to the same community that supported them in spite of the settlement’s toll. “This lesson has been extremely painful,” DeMint thought. “However, we remain here, continue to serve, and continue to believe that good people can effect change.”

    Dairy Queen Labor Lawsuit New York
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