question about minimum wage

[shireen]

I'm embarrassed to ask this question, please forgive me.

I just watched an interview with Rep. Jan Schakowsky on MSNBC, discussing her experience on living with a minimum wage.

Something she discussed with Alex Witt shocked me. Tipped workers get even less. The amount $7.25/hr INCLUDES what's made in tips. So they could be paid as low as $2.13 an hour, and the difference from tips is used to make the $7.25/hr.

I give large tips because i want that money to go towards the tipped workers so they make more than $7.25/hr.

Did I misunderstand that discussion between Witt and Schakowsky? Because if it's true, the high tip profits are going to employers, not employees. That does not make any sense. Someone please tell me I'm wrong. I'm so horrified.