Oh it’s not the entirety, the employer has been paying tipped folks at least $2.35 per hour! What recompense.
The 7i exemption, also called tip credit allows employers to take tips reported and lower the wages they pay and replace those wages with tips the public pays and have it count toward the federal minimum wage, which is a whopping $7.25 per hour and hasn’t increased since 2009 thanks to corporate ownership of the GOP and fecklessness from Democrats. It’s difficult to say what is more offensive economically or socially.