When Patty DeMint and Michelle Robey opened their Dairy Queen franchise in Medford, New York, back in 2017, they dreamed of creating a community hub where people felt welcomed and cared for. What began as a family-run business rooted in compassion and second chances soon became a landmark case that reshaped New York’s labor law.
In 2019, the sisters were blindsided by a $6 million lawsuit for violating an obscure rule that required “manual workers” to be paid weekly, not biweekly. Though they paid employees on time and in full, a decades-old technicality nearly cost them their business, their savings, and their homes.
From Ice Cream Dreams to a Legal Nightmare
Patty and Michelle ran their Dairy Queen like a second home. They offered jobs to teenagers, seniors, and even former inmates, believing that everyone deserved a chance to rebuild.
“Everyone needs a place to call home as far as a job goes,” said Patty DeMint, reflecting on her commitment to giving people second chances.
However, in 2019, a former employee sued the sisters for breaking a little-known state labor rule requiring manual workers to be paid weekly. The sisters, who paid biweekly through a payroll company, had no idea they were violating any law, even a state labor audit hadn’t flagged the issue.
Despite their good intentions, the sisters were hit with a $6 million lawsuit, alleging that their biweekly payroll caused “wage delays.”
“We paid everyone everything they were owed,” said Michelle Robey, “but we didn’t know a rule this small could destroy everything we worked for.”
NY Sisters Who Own DQ Franchise Hit With $6M Lawsuit For Paying Workers Every 2 Weeks: Overview
| Category | Details |
|---|---|
| Business Name | Dairy Queen Franchise, Medford, New York |
| Owners | Patty DeMint and Michelle Robey (“The DQ Sisters”) |
| Year Opened | 2017 |
| Issue | Paid “manual workers” every two weeks instead of weekly (in violation of NY labor law) |
| Lawsuit Filed | 2019 |
| Initial Claim | $6 million |
| Settlement Amount | $450,000 |
| Amount Paid to Lawyers | $305,000 |
| Employee Compensation | Less than $200 each |
| Law Change | May 2025, now businesses paying biweekly owe only interest, not penalties |
| Key Outcome | Legal reform benefiting all NY small businesses |
The Lawsuit That Changed Everything
The lawsuit quickly escalated. Though the DQ Sisters had followed all standard payroll procedures, New York’s manual worker law classified most fast-food employees as “manual laborers,” making biweekly pay illegal without special state permission.
“Everybody got pennies, but the lawyers… they’re the ones who made all the money,” said DeMint, calling the situation “heartbreaking.”
Eventually, the sisters were forced to settle the case for $450,000, a devastating blow for their small business.
| Settlement Breakdown | Amount |
|---|---|
| Total Settlement | $450,000 |
| Legal Fees and Costs | $305,000 |
| Payments to Employees | Less than $200 each |
According to Robert Fonti, head of the Suffolk Chambers of Commerce: “It was a loophole, a small sentence in a law no one knew about until it happened. What they went through was unfortunate, but it helped change the law for others.”
How Legal Loopholes Hurt Small Businesses?
The DQ Sisters’ case revealed how labor law loopholes were being exploited by legal firms. These lawsuits often targeted small business owners who unintentionally violated payroll frequency laws, even when no wages were withheld or delayed.
Such cases became widespread across New York, where law firms used social media ads to recruit former employees for class-action suits. While the lawyers made large profits, the workers typically received minimal payouts.
“It’s a system that punishes good business owners for technical mistakes,” said Fonti, who has since worked with the sisters to educate small businesses on wage compliance.
A Change in the Law: Thanks to the DQ Sisters
Despite their personal losses, Patty and Michelle didn’t stop fighting. They partnered with business organizations and state lawmakers to reform New York’s wage payment laws.
Their persistence paid off in May 2025, when the state officially amended the law. Under the new rule, businesses that mistakenly pay biweekly instead of weekly will no longer face massive penalties or class-action lawsuits, they’ll only owe interest on any delayed wages.
| Before 2025 Law Change | After 2025 Law Change |
|---|---|
| Violations could lead to class-action lawsuits and multimillion-dollar penalties | Violations now result only in interest owed on delayed wages |
| “Manual worker” definition unclear | Law now provides clearer definitions and guidelines |
| No protection for payroll errors | Payroll companies may now share accountability |
“It’s a victory because it won’t happen again because of what they did,” said Fonti, calling the sisters “heroes for small businesses.”
Their efforts have since inspired other entrepreneurs to advocate for fairer laws and clearer payroll guidance across industries.
How the DQ Sisters Helped Prevent Future Lawsuits?
Following their ordeal, the sisters worked with business groups, lawmakers, and advocates to ensure better protections for small employers. Their case pushed New York’s Labor Department to clarify key definitions and simplify wage compliance rules.
Efforts are now underway to hold payroll service providers accountable when mistakes occur, a step that could prevent future cases like the DQ Sisters’ from ever reaching court.
“We never wanted anyone else to go through what we did,” said Robey. “If our story helps one small business stay open, it’s worth it.”
Lessons for Workers and Employers
For Employees:
- Always check your payslips for accuracy.
- Keep a record of hours worked and confirm pay dates.
- Report discrepancies quickly to HR or the labor department.
For Employers:
- Review state labor laws regularly.
- Use certified payroll software or consult legal advisors.
- Keep detailed records of all wage payments.
- Train staff and managers on wage compliance.
“Ignorance of the law isn’t an excuse, but the law should also be fair to those who make honest mistakes,” says Thomas Murray, a business compliance attorney.
Community Support and a Second Chance
After the lawsuit, the sisters faced severe financial hardship. To help them recover, one of their employees launched a GoFundMe campaign that drew overwhelming support from their community. Locals who had once enjoyed their ice cream rallied around them, determined to help the women who had given so much back.
Even after losing much of their savings, the sisters continue to run their Dairy Queen, serving customers with the same warmth and dedication that made their business beloved.
Their story serves as both a warning and an inspiration, a reminder that small mistakes can have massive consequences, but also that perseverance and integrity can drive real change.
FAQs
Why were the DQ Sisters sued?
They were sued for paying workers biweekly instead of weekly, which violated an old New York law for “manual workers.” Even though all wages were paid, this technical violation triggered a costly lawsuit.
How much did the lawsuit cost them?
They settled the case for $450,000, of which $305,000 went to legal fees. Each affected employee received under $200.
How did the law change because of them?
Thanks to their advocacy, New York amended its labor law in May 2025, now, biweekly payments made by mistake only incur interest charges, not multimillion-dollar penalties.
What can business owners learn from this case?
Employers must stay updated on state labor laws, use reliable payroll systems, and seek legal advice to avoid similar pitfalls.
How can workers ensure fair pay?
Workers should check their payslips, maintain written records, and raise concerns immediately if payment issues arise.
