When Patty DeMint and Michelle Robey opened their Dairy Queen franchise in Medford, New York, back in 2017, they weren’t thinking about legal loopholes or technical wage laws — just ice cream, community, and second chances. The sisters, affectionately dubbed the “DQ Sisters” by locals, built their shop into a neighborhood gem. They hired people who’d struggled to find work elsewhere, helped employees through hard times, and even bought Christmas presents for their staff’s kids. It was the kind of small-town success story you don’t see enough of anymore.
Then, one lawsuit nearly melted everything down.
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From Sweet Success to Legal Nightmare
In 2019, the DQ Sisters found themselves staring down a $6 million lawsuit over what seemed like an obscure rule from another era — New York’s “Frequency of Pay” law, a statute dating back to the Great Depression.
Under the law, employers must pay “manual workers” weekly, not biweekly. The problem? The sisters said they’d never even heard of it — and apparently, neither had the New York State Department of Labor, which had previously audited their business without flagging any issue.
Instead, their biweekly pay schedule — common practice for many businesses — became grounds for a class-action lawsuit led by a former employee. According to CBS News, this wasn’t an isolated case. Dozens of small businesses across the state were being targeted by law firms advertising online for employees willing to sue over technical violations.
“It was ridiculous,” Robey told CBS. “We knew we paid every employee every dime that they were owed.”
Her sister Patty added that the former employee “used to say, ‘I’m gonna get you,’ and she did.”
A Costly Lesson
Though the lawsuit initially sought millions, the sisters eventually settled for $450,000. After legal fees, former employees reportedly received only about $200 each.
“The lawyers structured it so they would get one-third of the larger payment,” Robey told Trihamlet News. “The employees are getting pennies on the dollar, which is further proof that these lawsuits don’t help the employees — they help the lawyers.”
Despite the crushing financial blow, the sisters refused to close up shop. Instead, they fought to change the law, working with New York legislators to reform the statute. As of May 2025, businesses that accidentally pay manual workers biweekly are now only responsible for interest on the delayed wages, not multimillion-dollar penalties.
For a pair of small business owners, it was a massive victory — not just for themselves, but for thousands of mom-and-pop operators across the state.
A Community That Gave Back — and Then Some
Even while battling legal fees, the DQ Sisters never stopped helping others. Their employees describe them as “surrogate mothers when life gets tough.” One worker even launched a GoFundMe campaign to support them through the ordeal, highlighting how much they’d done for the local community.
The sisters’ story resonated far beyond Medford — a testament to the human side of small business ownership, where one misinterpreted rule can nearly wipe out years of hard work and goodwill.
The Bigger Picture: Wage Laws and “Gotcha” Litigation
While the DeMint sisters’ story stands out, their situation sheds light on a broader issue in the American workforce — the rise of wage and hour lawsuits.
Labor attorney Howard Wexler told CBS that these cases “took what was a law meant to ensure fair pay and turned it into more of a ‘gotcha’ technical violation.”
Still, wage theft — intentional or not — is a real and widespread problem. A 2024 Economic Policy Institute report revealed that government efforts recovered more than $1.5 billion in stolen wages between 2021 and 2023. The practice, they found, affects employees across all sectors — from hospitality and healthcare to retail and construction.
Organizations like Working America, part of the AFL-CIO, advise employees to stay vigilant. “If your paycheck doesn’t look right, it probably isn’t,” the group warns.
How Workers Can Protect Themselves
Experts suggest a few key practices for workers to avoid becoming victims of underpayment:
- Review every pay stub carefully and question any inconsistencies immediately.
- Track your hours independently — whether in a notebook, an app, or a signed weekly log.
- Compare notes with co-workers to ensure consistency in pay and hours.
- Escalate recurring issues through HR, a union representative, or even legal counsel if necessary.
Keeping personal records, no matter how small, can make all the difference if disputes arise.
How Employers Can Avoid the Same Trap
For employers, the DQ Sisters’ ordeal is a cautionary tale in compliance. Companies — even small ones — need to stay on top of federal, state, and local wage laws, many of which differ significantly.
Payroll giant ADP warns that common employer mistakes include:
- Misclassifying workers as independent contractors.
- Miscalculating overtime pay or bonuses.
- Failing to update systems after legal changes.
- Neglecting equal pay compliance or state-specific mandates.
Regular compliance audits, clear communication with employees, and the use of automated payroll software can prevent costly errors.
And perhaps most importantly, training — ensuring every manager knows not just how to pay employees, but how often.
From Setback to Advocacy
For the DQ Sisters, what began as a potential tragedy turned into an unexpected legacy. They’ve helped spark overdue reform in New York’s outdated labor codes — ensuring no small business owner faces financial ruin over a technicality again.
They’re still running their Dairy Queen, still mentoring employees, still doing the work they love. And while the legal scars may linger, so does their sense of purpose.
As Patty DeMint told a local paper recently: “If we can help one business not go through what we went through, then it’s worth it.
FAQs
What was New York’s Frequency of Pay law?
It required “manual workers” — including many retail or restaurant employees — to be paid weekly instead of biweekly.
How did the DQ Sisters violate it?
They paid employees every two weeks, which technically breached the rule, even though everyone was fully paid.
How much did they end up paying?
They settled for $450,000 out of court — much of which went to attorney fees.
Did the law change because of their case?
Yes. Their advocacy helped push lawmakers to revise the statute in 2025.
What can other small businesses do to stay compliant?
Review all payroll schedules regularly, consult employment attorneys, and use HR software that flags legal inconsistencies.
