That is the sickest thing, and the major reason tipping is such a problem in the States. Honestly, any establishment that runs on this sub-minimum wage platform deserves to go under. Next to prison labor and immigrant labor, this is the most demeaning way to live.
As a teacher and parent with special-needs children, I am absolutely devastated. It's not a surprise from the party of family values, though. You can feel the disdain from conservative parents, and even from some of the students.
I wouldn't mind moving since Mexico has a much higher quality of life than the US does right now.