Yeah we had this in the UK for a time when minimum wage was introduced. Up until about 2008-2009 when it was finally changed so that employees had to have minimum wage regardless of tips the hospitality industry didn't collapse despite the noise made in the right wing press.

However we now have issues with employers stealing tips from employees via various dodgy practices. The law is likely to change again here to protect tips too.

Chicago are making a step in the right direction but employees will still lose out of tips aren't protected too