Famous UES Spot Serendipity 3 Settles Wage Theft Lawsuit: Report

UPPER EAST SIDE, NY — Upper East Side desert spot Serendipity 3 is world famous for its frozen hot chocolate, but it turns out the business was also freezing out its workers from their hard-earned tips.

Owners of Serendipity 3, located on East 60th Street near Second and Third avenues, reach a $1 million settlement with former employees in a wage-theft lawsuit, the New York Post reported. More than 30 former waiters and servers accused the business of forcing them to share tips with kitchen workers.

Thirty-three former employees will be awarded an average payout of $20,000 each over the next three weeks as part of the $975,000 settlement, the Post reported. The workers brought their lawsuit against Serendipity 3 two years ago, according to the report.

While tip sharing and tip pooling is legal in New York state, it can only be conducted among employees that provide direct service to customers, according to the state Department of Labor. Because kitchen workers such as ice cream scoopers do not provide a direct service to customers, Serendipity 3's wait staff claimed it was unlawful for employers to require sharing tips.

New York state employers are allowed to pay tipped workers a minimum wage which is less than what non-tipped workers make. The minimum wage for non-tipped workers in New York City is currently $12 per hour for small businesses (less than 10 employees) and $13 per hour for large businesses while tipped workers can be paid as little as $8 per hour at small businesses and $8.65 per hour at large businesses.

Serendipity 3 was founded in 1954 and is known for its extravagant desserts. The eatery was famously featured in the John Cusack and Kate Beckinsale romantic comedy "Serendipity" and made headlines for its lavishly-priced $1,000 "golden opulence sundae" and $295 "le burger extravagant."

Read the full New York Post article here.

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