I would assume that the implementation mechanism involves reporting tips to the IRS so they can be taxed at a 0% rate, and that you would have to be classified as a non-exempt employee with a maximum hourly earnings rate.
So basically, unreported income remains tax evasion. White collar workers paid via tips is tax evasion. Etc
Sounds like all the blue collar workers who get tips are now screwed by this system. Getting tipped against a maximum wage defeats the purpose of tipping them.
Say you tip your mailman $100 at Christmas or refrigerator deliverer type stuff.
So basically, unreported income remains tax evasion. White collar workers paid via tips is tax evasion. Etc