How, exactly, does not tipping result in someone not being paid. A bit hyperbolic.
And, while that "$7.25/hour" is OK in some place like Terre Haute, Indiana, It's destitute poverty in a lot of cities, so the societally agreed convention is that in order to live/pay groceries/utilities/bus-fare/etc... tips are essential.
It's reasonable to assume that when a serving person in the United Stated doesn't receive a tip of 18-20%, then that money is resulting in a reduction of expected baseline salary.