When Patty DeMint and Michelle Robey opened their Dairy Queen in Medford, New York, in 2017, they wanted more than a business. Their goal was to build a welcoming space for families and a supportive workplace for employees. They treated their team like family, often helping workers in need, giving holiday gifts to their children, and offering second chances to those with difficult pasts.
Their Dairy Queen quickly became a local favorite, not only for its food but for its heart. Patty often said that everyone deserves a place to belong, and their store became that home for many. But what started as a story of compassion and community turned into a devastating legal challenge that almost cost them everything.
The Lawsuit That Changed Their Lives
In 2019, a former employee filed a lawsuit accusing the sisters of violating a little-known New York labor law that requires “manual workers” to be paid weekly. The sisters had been paying their employees every two weeks, a practice they believed was entirely compliant. Even a prior state labor audit had not identified any issue.
Despite paying every dollar owed to their workers, the sisters were hit with a $6 million lawsuit. The employee who filed the claim had allegedly made threats before the legal action. As the case grew, Patty and Michelle faced the possibility of losing not only their business but also their homes.
The experience left them emotionally and financially drained. “We thought we were doing everything right,” Patty recalled. “We just wanted to take care of our team.”
The Bigger Picture: A Legal Loophole Exploited
The sisters’ case revealed a troubling pattern across New York. Dozens of small businesses were being targeted by similar lawsuits, often promoted through social media ads. These cases focused on technical payroll violations rather than unpaid wages or mistreatment.
The lawsuits allowed law firms to profit heavily from settlements, while employees received little. The DQ Sisters eventually settled their case for $450,000, but the breakdown of the payout exposed how the system worked against small business owners.
| Settlement Breakdown | Amount |
|---|---|
| Total Settlement | $450,000 |
| Legal Fees and Costs | $305,000 |
| Amount Paid to Employees | Less than $200 each |
“Everybody got pennies, but the lawyers got the money,” DeMint said. The settlement consumed much of the sisters’ livelihood, forcing them to rely on community support and a GoFundMe campaign to stay afloat.
Robert Fonti, head of the Suffolk Chambers of Commerce, called the case a travesty. “It was a loophole in the law that they didn’t even know about,” he said. “What they went through was unfortunate, but because of them, others won’t have to face the same thing.”
A Change in the Law, Thanks to the DQ Sisters
Even after the lawsuit, Patty and Michelle didn’t give up. Instead, they turned their struggle into action. Working with lawmakers, they pushed for reform of the outdated labor law that had ensnared them. Their efforts paid off in May 2025, when New York amended the law.
Now, businesses that mistakenly pay workers every two weeks instead of weekly are no longer subject to massive lawsuits. Instead, they owe only the interest on delayed wages. This change has already helped shield countless small businesses from ruin.
| Date | Event |
|---|---|
| 2017 | Patty and Michelle open their Dairy Queen in Medford, NY |
| 2019 | Former employee files lawsuit over biweekly pay |
| 2023 | Case settles for $450,000 |
| May 2025 | New law amendment eliminates severe penalties for biweekly pay errors |
The sisters’ legal defeat turned into a statewide victory. Their case inspired a movement to clarify payroll laws and hold payroll companies accountable for compliance errors.
“It’s a victory because it won’t happen again because of what they did,” Fonti said.
The Lessons for Workers and Employers
The story of the DQ Sisters carries vital lessons for both employees and business owners.
For Workers
Employees should stay aware of their rights and payment schedules. Understanding how and when you’re paid can prevent potential disputes later. Workers can protect themselves by:
- Keeping personal records of hours worked
- Requesting weekly sign-offs from supervisors
- Checking pay slips for accuracy
- Speaking up early if pay schedules seem irregular
For Employers
The case serves as a reminder that ignorance of the law is not a defense. Payroll compliance must be taken seriously, even for honest mistakes. Employers can avoid similar pitfalls by:
- Staying updated on state and federal labor regulations
- Using reliable payroll software for accuracy
- Keeping detailed payment records
- Training staff and managers on payroll policies
Legal expert Amanda Murray says, “This case shows how technical errors can devastate small businesses. The law should protect both workers and employers who act in good faith.”
Community Support and Recovery
After their settlement, the Medford community rallied behind Patty and Michelle. Former employees started a fundraising campaign to help them recover. Regular customers stopped by just to show support.
Despite everything, the sisters refused to close their Dairy Queen.
They continued serving ice cream with the same kindness and care that defined their journey. “We lost a lot, but we gained something too,” Michelle said. “We made a difference.”
Why This Story Matters?
The experience of the DQ Sisters shows how outdated laws can unintentionally harm small business owners trying to do the right thing. It also highlights how grassroots advocacy can bring meaningful change.
Their resilience turned a painful personal loss into a legislative victory that now protects thousands of employers and employees across New York.
The case reminds both sides of the labor relationship to stay informed, communicate, and work together to prevent legal conflicts.
FAQs
Why were the DQ Sisters sued?
They were sued for paying employees every two weeks instead of weekly, which violated an old New York labor law for manual workers.
How much did the lawsuit cost the DQ Sisters?
They settled the case for $450,000, but about $305,000 went to legal fees. Each employee involved received less than $200.
What change was made to the law because of their case?
The law was updated in May 2025. Businesses that mistakenly pay biweekly now owe only interest on delayed wages instead of facing massive fines.
How can employees protect themselves from wage issues?
Employees should check their pay slips regularly, keep their own work records, and speak up quickly if they notice inconsistencies.
What can employers do to avoid payroll lawsuits?
Employers should stay current on labor laws, use payroll compliance tools, keep accurate records, and train their managers about pay frequency requirements.