This is great for everyone! Hopefully they will get a higher salary and I guess the company will pay more in taxes and social benefits (or whatever it is called in English). I don't get how tipping can be legal, or do you actually pay taxes on tips in the US?
Yes, they are taxed the same as wages. For tips done via credit/debit card, that will even be reported and have taxes withheld by the employer. For cash tips, the recipient is supposed to report them on their own, though of course, it's fairly common not to report the full amount because it's hard for the government to track.
