I think that you're misreading that: it states that: a different minimum wage (but still a minimum wage) applies to workers earning tips; and the standard minim

I think that you're misreading that: it states that: a different minimum wage (but still a minimum wage) applies to workers earning tips; and the standard minimum wage still applies if their wages & tips are insufficient to equal the minimum wage. In other words, the minimum wage does apply, and even with tips the employer must pay at least some money. Everyone I know who's ever worked for tips has tended to make quite a lot, considering.