4 Detroit-Area Leo's Coney Island Ordered To Pay Workers $515K In Back Wages

Four Detroit-area Leo’s Coney Island restaurants will have to pay back employees after labor officials said they were short-changed.

Officials ordered the franchises in Clarkston, Dearborn, Livonia and Sterling Heights to pay more than $500,000 in owed overtime wages and damages to 143 employees.

The locations must also pay $73,784 in penalties, officials said.

Owner Kiriakos Vlahadamis and the operators of the four franchises regularly paid workers straight-time for overtime, instead of time-and-one-half, which is required by law for all hours worked over 40 in a workweek.

Officials said the operators kept two sets of timecards for employees, one for regular hours worked up to 40 per week and one for overtime hours worked each week.

Officials said the overtime timecards were routinely destroyed.

In 2018, the same federal court entered a consent order and judgment prohibiting Vlahadamis and Leo’s Coney Island Sterling Heights from future FLSA violations, including overtime and record-keeping violations.

With origins dating back to 1914, Leo’s Coney Island opened its first location in 1982 in Farmington Hills and began franchising in 2005. The restaurant was founded using a limited menu offering fries, burgers and Greek salads. Now it also offers Greek specialties and breakfast.

There are more than 70 Leo’s Coney Island locations across Michigan.