FOX 2 - The owner of four Leo's Coney Island franchises has been ordered to pay $515,000 in back wages and damages to 143 workers by a federal court order.
Big picture view:
The U.S. Department of Labor has obtained a consent judgment requiring the owner of Leo's restaurant locations in Clarkston, Dearborn, Livonia, and Sterling Heights for wages related to unpaid time-and-half compensation.
The consent judgment also requires the defendants to pay $73,784 in penalties.
Investigators found two sets of time cards by the defendants 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 time cards tracking overtime hours were regularly destroyed.
Allegations had been made that owner Kiriakos Vlahadamis paid workers straight-time rates for all hours worked when they were obligated to pay time-and-one-half their regular rate of pay for all hours over 40 in a workweek.
It is a federal law, required by the Fair Labor Standards Act.
Dig deeper:
The Department of Labor's Wage and Hour Division said:
"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 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.
What you can do:
Workers and employers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243).
Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division.
The agency’s PAID program offers employers an opportunity to self-report and resolve potential FLSA minimum wage and overtime violations, as well as certain potential violations under the Family and Medical Leave Act.
The Source: Information for this report is from the US Department of Labor.