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Dairy Queen owners hit with $6 million fine over little known pay law – ‘we never knew’
THE owners of a Dairy Queen in Long Island were slapped with a $6 million fine for paying their employees every two weeks instead of weekly.
The franchise, which is owned by sisters Patty DeMint and Michelle Robe, is said to have violated a New York pay frequency law that dates all the way back to the Great Depression era.
DeMint and Robe bought the Medford-based Dairy Queen after they pooled all of their money together, and then one lawsuit in 2019 put them at risk of homelessness.
It turned out the pair were unknowingly breaking the state’s “Frequency of Pay” law, which was established during the depression to prevent wage theft.
The law requires “manual workers” to be paid weekly, and gives examples of those workers as “a mechanic, workingman or laborer” who “spends more than 25% of working time engaged in” physical labor.
Robey remembered how shocked both of them were when the 2019 case turned into a flood of lawsuits, which came to $6 million.
She said: “It was ridiculous to us because we knew we paid every employee every dime that they were owed
“Everyone we had spoken to was like, ‘This can’t be right. This can’t be right. You must be reading it wrong. There’s something wrong.’
“It was so unbelievable.”
The sisters were initially being sued by a former employee of theirs who anonymously claimed that they weren’t properly paid for their overtime.
This claim then snowballed into a class action against the two, which accused them of “very serious labor violations against … employees including withholding paychecks without reason, refusing to pay overtime wages, [and] shifts in excess of 10 hours without legal compensation.”
Both sisters denied the allegations and believed that the first claim was made because of the employee’s anger over their termination.
DeMint said of the employee: “She would say all the time, ‘I’m gonna get you, I’m gonna get you,’ and she did.”
FIGHTING BACK
Before long, the class action was made up of thousands of separate cases, according to Howard Wexler, a labor law expert and partner with Seyfarth Shaw LLP.
Wexler explained: “It’s easily in the thousands in terms of lawsuits.
“It took what was a law that required you to pay your employees weekly into more of a ‘gotcha’ based on technical violation.”
What's a class-action settlement?
Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
DeMint and Robey sought to change the law around pay frequency in New York.
State Sen. Dean Murray took action and argued that the workers didn’t need protection because they got everything they were owed.
The action was shot down by the New York State Trial Lawyers Association.
Brian Schneck, with the labor union UAW Local 259, said that while what had happened to the sisters was “horrible…the law is the law“.
THE OUTCOME
In May, New York Governor Kathy Hochul closed the floodgate of lawsuits by making a change to the state legislation.
She ordered businesses that pay every other week to now only owe the interest on the late wages.
Unsatisfied with the solution, DeMint and Robey eventually settled out of court for $450,000.
Murray hailed the sisters as “heroes of New York businesses.
“I mean, every business in New York should be applauding them and thanking them.”
The claimants stand to earn less than $200 each, while $305,000 is going to cover lawyer fees.
Robey, who, along with her sister, has set up a GoFundMe to help them get back on their feet, called the whole situation “an expensive lesson”.
The pair has currently raised less than $3,000 from 70 donations at the time of writing.
Brooks Nader suffers TWO embarrassing wardrobe malfunctions at the same time as she ditches underwear and bra in Paris
BROOKS Nader suffered not only one but two wardrobe malfunctions while enjoying a night out in Paris.
The model, 28, jetted off to France to attend the Grand Palais party with her sister, Sarah Jane.
The sisters both cut chic figures, opting for coordinating outfits in a neutral color scheme.
Sarah wore an all black ensemble finished with shiny black boots landing just below the knee.
But it was Brooks’s look that had people doing a double take – and not just because she looked gorgeous.
Brooks wore a long dusty brown dress with a corset style closure over the chest.
The neckline was incredibly low cut, noticeably squashing her braless cleavage as she walked.
In a number of paparazzi snaps her nipples are popping out of the top of her dress.
Aside from the corset clasp closing her dress at the chest, the rest of the front of the dress was a giant slit.
This was a very risky outfit choice, considering Brooks chose not to wear any underwear.
With a wrong movement or gust of wind, her vagina would be totally on show – which is unfortunately exactly what happened.
This isn’t the first time Brooks has gone out in a daring outfit.
Just last week on her trip to Milan Fashion Week, she wore a sparkly dress with a plunging neckline without a bra.
She was also spotted strutting down the streets of NYC with no bra in a completely see-through blouse.
Aside from modeling, Brooks has made a number of appearances on television.
She was a contestant on Dancing With The Stars last year, partnered with professional dancer Gleb Savchenko.
The duo finished the competition in ninth place after gracing the floor with many different numbers from the tango to the quickstep.
This year, Brooks also launched her own reality TV show called Love Thy Nader.
The series follows her and her four sisters as their pursue their dreams and careers in New York.
It also follows their bond as sisters, their love of fashion, and provides deeper insight into all of their personal lives.
