> general minimum wage is peanuts, yes. but tipped waitstaff only make $2.83/hr is not true.

True, tipped minimum is $2.13/hr.

> If the employer did not make up the difference then they risk being fined/shutdown.

Employers make up reported shortfalls in tipped jobs, but they also often treat shortfalls as a negative performance indicator, justifying termination. In jobs where there are cash tips (not everything through a payment system), this incentivizes enployees to assure that there are no shortfalls.