Have never worked a job that earned me tips, but it seems to me that everyone who holds a full time job should not be required to rely on kindness of strangers for their livelyhood.
Regulations should be such that they mandate all employers to pay a liviable wage.
If that causes places to shutdown, let them greedy bastards shutdown. The market will correct itself.
Continuing as it is today is bad for everyone but the employers and capitalists.