I wonder how well using cash tips could solve the problem. I know there are restaurants where servers are required to turn in any cash tips. If a server "forgets to report" and always has far less tips than his/her co-workers, I imagine that he/she would simply be replaced for someone else that does earn tips to report. The employer could say the lack of tips is indicative of poor performance, too.
Most resturants ask you to claim your tips when cashing out, but most just fudge it. They arent going to go through the waiters pockets, as tips are their money and disclosed only to the government. It gets tricky because they try to be the middleman. Just tip cash.