All this talk of waiting tables is giving me flashbacks, and not the good kind. I served tables for two and a half years while I was in therapy school, and while it was a good job for the instant cash on hand, I hope to God I never have to do something like that again. Being at the complete mercy of the general whim of the public for your money isn't fun. The wage mentioned earlier was correct in my case when I lived in Utah, $2.13/hr, and any check that I had past the one I earned during training was a whopping $0 thanks to tips being taxed against that wage. And the mention of tips being deducted from at the end of the night was also my case - total sales for the shift had 3% taken from servers (bartender, bussers, and hosts all took 1% for each role). So yes, stiffing a server is actually costing them money for their time in the case that they make that wage.
Worst case I can relay was one morning when I was paired with the slowest, dullest fucking server in the restaurant to take care of a bridal party of 25-30 people, pretty much from the start of my shift. These assholes ran me ragged across the restaurant for my entire shift, to the point I couldn't take any other tables while they loitered there for hours. Being the people pleaser I am, I did my damnedest to make sure they were taken care of. My manager offered to add gratuity to their bill, and they swore up and down that they would "take care of us." When all was said and done, they racked up a total bill of several hundred dollars, and in the end tipped my serving partner and me $12. To split. I think my half of the total sales for the table was over $300, so after the other staff got their 3% share, I lost money over that entire morning since I had to give up at least $9 of that table. That was 15+ years ago and I'm still fucking livid and bitter thinking about it. Haha
Now here in Oregon (and Washington too, I think. Maybe even California, though I could be wrong), servers actually make the minimum wage here of I think $15/hr, maybe more. So I'm less inclined to tip quite as much, but I still try to be generous (and understanding) based on my serving experience. Probably some of the most chaotic work I've done.