The larger issue with employers paying insufficiently is minimum wages that are too low. Federal minimum wage still applies for tipped workers, as far as I can

The larger issue with employers paying insufficiently is minimum wages that are too low. Federal minimum wage still applies for tipped workers, as far as I can tell, so employers are required to compensate the difference if workers make less. The same seems to apply to most states that have higher minimum wages, and in a few the minimum wage (excluding tips) is the same regardless of tipping. EDIT: Adding a source, https://en.wikipedia.org/wiki/Tipped_wage https://en.wikipedia.org/wiki/Tipped_wage