AG Lisa Madigan and 16 Others Oppose Proposed Tip Rule

The Obama administration in 2011 mandated that tipped workers keep their tips, but the U.S. Department of Labor has proposed reversing that rule. Instead, employers would combine all tips and distribute the money among all staff, including back-of-house workers. Attorney General Lisa Madigan, and 16 other state AGs, has argued vehemently against the reversal, anticipating that it would encourage employers to pocket the tips, rather than distribute them. The new rule is supported by the Illinois Restaurant Association (Chicago Tribune).