Allegations that a local restaurant withheld employee tips, made unauthorized wage deductions, and retaliated against workers who raised concerns have been brought to federal court in a new lawsuit. The complaint was filed on April 8, 2026, by two individuals on behalf of themselves and other similarly situated employees against Coney Partners, LLC, doing business as Grand Coney Diner.
According to the complaint submitted by plaintiffs Darlene Lynn Bellefeuille and Sophie Falk in the United States District Court for the Western District of Michigan, Southern Division, the case centers on claims that Grand Coney Diner misappropriated customer tips intended for servers and server-supervisors. The suit alleges violations of both federal law—the Fair Labor Standards Act (FLSA)—and state law under the Michigan Improved Workforce Opportunity Wage Act (MiWOWA).
The filing outlines that Bellefeuille and Falk are current or former employees of Grand Coney Diner in Kent County, Michigan. They claim to represent a group of approximately thirty employees who worked as servers or server-supervisors at the restaurant. According to the complaint, these workers earned $6 per hour plus tips while performing duties such as processing online orders and serving dine-in customers.
The plaintiffs allege that about two years ago, Grand Coney implemented a new online ordering system which changed how customer tips were handled. Previously, tips from online orders were distributed directly to the server responsible for each order. Under the new system, however, “the customer tips did not go to the servers who handled the orders.” Instead, “the online order tips went into a pool” but “was not distributed to the servers who processed the orders.” The complaint further states that “Grand Coney retained those online tips for various business and personal expenses,” including purchasing supplies like server shirts and doughnuts for staff.
Specific allegations include using customer tips to offset costs for items such as uniforms—where employees were charged $5 per shirt—and funding prizes for internal contests among staff. One manager is alleged to have used tip funds to make a personal car payment. When employees complained about not receiving their share of online tips despite fulfilling all related work duties, management responded by eliminating the option for customers to leave online gratuities altogether.
Bellefeuille reportedly raised concerns with both management and human resources regarding tip allocation practices. After voicing these complaints, she alleges her work hours were reduced and she was demoted from her position as server-supervisor—a role she had held for two years—to regular server status. She also claims she was required to train new hires who later became her supervisors.
The lawsuit describes an incident on November 7, 2024 when a system outage prevented customers from paying for their orders. On November 15 of that year, Bellefeuille was accused by management of theft related to this outage; despite providing evidence disproving any wrongdoing, she was required by Grand Coney “to pay approximately $70 of her own money” to cover lost sales. Management then allegedly informed other staff members that Bellefeuille was being terminated due to theft before sending her home; shortly after this event she was told she could remain employed only as a regular server.
Falk’s situation is also detailed in the filing: while out on maternity leave and after it became known she might join legal action against Grand Coney Diner, Falk was removed from the scheduling system without formal notification of termination—despite earlier assurances from management that she could return following her leave.
The plaintiffs argue these actions created an intolerable work environment amounting to constructive discharge for Bellefeuille and discouraged other employees from asserting their rights regarding wage laws or tip distribution policies.
Legally, the suit claims multiple violations: misappropriation of employee tips under both FLSA and MiWOWA; unlawful wage deductions where workers were required to pay out-of-pocket when customers left without paying or during technical outages; improper use of tip credits toward minimum wage obligations; retaliation against those who reported potential violations; and elimination of tipping options as punishment following complaints.
In their prayer for relief submitted with attorney Robert M. Howard of Cunningham Dalman P.C., plaintiffs seek unpaid wages resulting from improper tip handling practices; liquidated damages equal to unpaid amounts; back pay due to retaliation-related demotions or hour reductions; compensatory damages for emotional distress; punitive damages intended as deterrence; restitution of all unjustly retained compensation; interest on monetary awards; reasonable attorney’s fees; injunctive relief requiring policy changes at Grand Coney Diner regarding tip distribution; certification allowing similarly situated employees to join in recovery efforts; and any additional relief deemed appropriate by the court.
Attorney Robert M. Howard represents Bellefeuille and Falk in this matter under case number 1:26-cv-01144.
Source: 126cv1144_Darlene_Lynn_v_Coney_Partners_Complaint_Western_District_of_Michigan.pdf
