Lawmakers seek clarity after Dairy Queen case


Dairy Queen case spurs legislative action in Albany. | Robert Chartuk

Two Suffolk lawmakers are pushing for further reforms following the costly lawsuit that blindsided the Medford “DQ Sisters,” who were sued for paying employees every two weeks instead of weekly.

State Sen. Dean Murray and Assemblyman Joseph DeStefano, both Republicans representing parts of Brookhaven, say the case highlights Albany’s failure to make laws clear and fair for small businesses. Murray is introducing legislation that will require the state Department of Labor to spell out exactly which jobs qualify as “manual labor,” the term at the heart of the law that tripped up the Dairy Queen owners.

“The law was written almost a century ago, and no one really knows what counts as manual labor anymore,” Murray said. “A kid standing at a register in an air-conditioned Dairy Queen is not a mechanic or a workingman. But because the law is so vague, attorneys were using it to file multimillion-dollar class actions.”

Murray said Governor Hochul’s recent budget change limiting penalties to interest on delayed wages was “a good start,” but more needs to be done. “We stopped the flood of lawsuits, but the confusion remains. Until we clearly define these terms, this problem isn’t fixed.”

DeStefano said the case underscores why New York ranks last in national surveys of business climate. “The Democrats have made New York the worst state in America to run a business,” he said. “Every mom and pop operator wakes up wondering what obscure law or mandate is going to put them out of business next. This Dairy Queen case is exactly why so many people are leaving this state.”

Both lawmakers said they’ll continue working on legislation to clarify labor definitions, improve communication from the state, and prevent “gotcha” lawsuits that punish honest employers trying to do the right thing.

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