Federal court order requires 4 Detroit-metro Leo’s Coney Island franchises, owner to pay $515K in back wages, damages to 143 workers

News Release

Federal court order requires 4 Detroit-metro Leo's Coney Island franchises, owner to pay $515K in back wages, damages to 143 workers

DETROIT - The U.S. Department of Labor has obtained a consent judgment requiring the owner of four 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.

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.

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.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency's free timesheet app for iOS and Android devices to track hours and pay.