Michigan Restaurant Chain Owes More Than $500K in Back Wages

The U.S. Department of Labor has obtained a consent judgment requiring the owner of four Michigan Leo’s Coney Island franchises in Clarkston, Dearborn, Livonia, and Sterling Heights to pay more than $500,000 in owed overtime wages and damages to 143 employees. Leo’s Coney Island is a restaurant chain with more than 70 locations across Michigan.

The consent judgment resolves the department’s case alleging that the four Leo’s Coney Island franchise locations and owner Kiriakos Vlahadamis paid workers straight-time rates for all hours worked when they were legally obligated to pay them time-and-one-half their regular rate of pay for all hours over 40 in a workweek as required by the Fair Labor Standards Act.

Investigators with the department’s Wage and Hour Division alleged that the defendants maintained two sets of timecards for employees to separate regular hours worked up to 40 per week from any overtime hours worked each week. The division’s investigators also alleged that the timecards tracking overtime hours were regularly destroyed.

Entered May 26, 2026, in the U.S. District Court for the Eastern District of Michigan, Southern Division, the judgment requires Vlahadamis and the four Leo’s franchises – Sterling Ponds LLC, doing business as Leo’s Coney Island #61; Clarkston Restaurant Inc., doing business as Leo’s Coney Island #22; Dearborn Plaza Coney Island Inc., doing business as Leo’s Coney Island #41; and Stass Restaurant Inc., doing business as Leo’s Coney Island #38 – to pay 143 employees $515,857 in overtime wages and damages.

The consent judgment also requires the defendants to pay $73,784 in penalties. Finally, the defendants paid $10,000 in attorney fees to resolve a contempt petition alleging Vlahadamis and Sterling Ponds LLC violated a 2018 consent judgment requiring compliance with the FLSA.

Source: U.S. Department of Labor