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Matt Baker of the full-service Gravitas in Washington, D.C. is stepping on the gas to grow his limited-service Baker's Daughter, an upscale bakery-cafe.

Wages paid directly to servers, bartenders and other tipped restaurant employees will rise by 67% over the next five years.

Working Lunch: The Illinois Restaurant Association threw in the towel without so much as making a fist.

After local industry advocates dropped their opposition, a bill to phase out the employer payroll concession is being described as a done deal.

With a vote expected within weeks, the restaurant industry is mustering its resources--and plenty of research--to avoid a situation like the one that unfolded in Washington, D.C.

The District said it will use the funds to support apprenticeship and job training programs for youths.

Working Lunch: Proponents of killing the tip credit through referendum were spared a tougher fight.

The Democratic proposal would phase in the changes over a five-year stretch. The bill is a pet measure of Sen. Bernie Sanders.

After wages and other costs have taken off, operators have responded by adding extra charges to the bill. The move risks alienating consumers and attracting regulatory scrutiny. But operators say they don’t have a choice.

The rules for employers vary greatly—if they exist at all in a jurisdiction. The volume of do’s and don’ts is expected to soar as the fees proliferate and Washington, D.C., figures out a model.