Affectionately known as the “DQ Sisters” – Patty DeMint and Michelle Robey, siblings who pooled their money to realize their dream of opening a Dairy Queen franchise in Meaford, New York, in 2017.
At first, it was all sweetness and nuggets as the two fostered a beloved community center while going above and beyond for their employees – from offering money in times of need to delivering Christmas gifts to their workers’ children. They have also gained a reputation for hiring locals looking for a second chance.
“Whether you’re a criminal, whether you’re lost, whether you’re 80 years old, whether you’re 14 years old,” DeMint told CBS News (1), “everybody needs a place to call home when it comes to work.”
But then, in 2019, the ice cream center hit a rocky road when a former employee filed a lawsuit against the sisters for violating a vague Depression-era New York state law. Suddenly, DeMint and Robey faced a $6 million lawsuit that threatened to bankrupt them and close their shop.
New York’s Wage Frequency Law (2) requires that “manual workers” receive their wages on a weekly basis. It’s a law the sisters said they’ve never heard of, which is why they pay their employees every two weeks — a process they say was never reported by anyone, including during an audit conducted by the state Department of Labor.
Robey told CBS the lawsuit was “ridiculous,” adding, “we knew we were paying every employee every penny they were owed.” ” But her sister noted that the former employee, who had been fired, “was always saying, ‘I’m going to get you, I’m going to get you,’ and she did.
Ultimately, the lawsuit, which included accusations of withholding wages and overtime pay, was part of a trend of lawsuits against New York companies, according to CBS, brought by law firms that solicited, through social media advertisements, plaintiffs paid every two weeks.
Employment attorney Howard Wexler told the outlet that the lawsuits “turned a law that required you to pay your employees every week into some kind of trap based on a technical violation.”
The sisters, who feared losing their business and possibly their home as a result of the lawsuit, ended up settling out of court for $450,000. Yet after the lawyers took their cut, the former employees only collected about $200 each, CBS reported.
“The lawyers structured it so that they received 1/3 of the larger payment,” Robey said. Trihameau News (3).
“Employees are getting pennies on the dollar, which is further proof that these lawsuits are not helping employees, but lawyers.”
An employee who works with the DQ Sisters created a GoFundMe (4) to support them, noting that they have created a “true second chance business” and become “surrogate mothers when life gets tough” for their employees.
Meanwhile, the DQ sisters stepped up, helping protect other small business owners from having to face a similar nightmare by successfully working with state legislators to change the law. Starting in May, companies that pay their workers every two weeks will only have to pay the interest owed on “late” wages, a far cry from the sisters’ multi-million payment.
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The Fair Labor Standards Act (FLSA) aims to ensure fair wages, overtime compensation, and adequate employment conditions for workers in the United States. Yet despite the FLSA, organizations like Working America – an affiliate of the American Federation of Labor and the Congress of Industrial Organizations – warn that “if your salary doesn’t look right, it probably isn’t” (5). And that’s not hyperbole.
A 2024 report from the Economic Policy Institute found that government efforts against wage theft resulted in the recovery of more than $1.5 billion in stolen wages from American workers over just a two-year period, between 2021 and 2023 (6). “Wage theft,” they say, “is pervasive across all sectors and income levels across the country.”
That’s why Working America recommends keeping a close eye on your pay stub and reporting any discrepancies to your employer immediately to ensure they are corrected in a timely manner.
They also suggest keeping your own records of all the hours you put in at work — and even, if you’re comfortable doing so, regularly asking your boss to sign it, thereby verifying it — and consulting with colleagues, human resources, and even legal representation if you’re experiencing consistent pay shortages.
Employers, for their part, should educate themselves on the various federal, state, and local wage laws to avoid what ADP describes as “penalties that could negatively affect their bottom line or even put them out of business” (7).
The payroll and human resources firm notes that common employer payroll errors often revolve around employee and contractor misclassification, as well as errors related to workers’ compensation and failure to comply with the Equal Pay Act.
Staying on top of the issue using tools such as payroll software and compliance checklists can, they add, “help avoid tax issues and maintain positive morale among staff.”
Other experts suggest ensuring employees are clear about wage and overtime policies, maintaining accurate and up-to-date payroll records, and implementing training sessions to ensure all employees and managers fully understand the company’s payroll policies.
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CBS News (1); New York State Department of Labor (2); Trihamlet News (3); GoFundMe (4); Working America (5); Economic Policy Institute (6); ADP (7)
This article provides information only and should not be considered advice. It is provided without warranty of any kind.
