I am not a liberal, I am telling you simply, you don't like the pay at your job... get a new one... pure and simple, doesn't get much more self reliant than that.
If what he's doing is illegal, report him to the IRS, or other enforcement agencies they'll be happy to take him down.
Seems to me, you think your employer is robbing from you, even if it may be legal.. if you feel that way there is even more reason TO GET A NEW JOB!!
How tips are or are not treated, and allowed to be treated are part of the laws... if he's violating the law, get him arrested... if he's simply following the law in a way you don't like... you can either work to change the law... a long term and large effort, which may be successful in time, but not likely to remedy your issues on being paid... or you can go find an employer who pays differently and work for them.
I don't need it explained to me Gomer... Life isn't fair, its not right, and its not going to change just because you showed up.... You are much better off investing in finding a new job, or better yet, improving your skill set and abilities so you are worth even more to any employer.
You think Tips are a gift, Mr Tax man and the law views them as wages... you don't have to like it, but that's the way it is.
I'm glad you think it's so cut and dried. In a rural area, jobs are hard to come by. This guy was a millionare and only hired divorced mothers. They're easier to cheat as they have to work. If there are no other jobs, you keep quiet in order to eat. I did walk off as I was married and not reliant on him. And tips are a gift for good service. I have no problem with taxing them for income but it hurts those who can least afford it and just what we need is more taxes. No one that worked at The George Inn was a kid nor a college student. These were Moms trying to feed their kids and 2 were widows. How many jobs do you think there are with only 3 restaurants in a rural area? And it's fairly easy to tell someone else to get a job elsewhere when there are none and it doesn't affect you personally. If these ladies could work somewhere else, they would have.