From what I understand (via friends in the biz), not paying actual wages isn't super easy to get away with and many states (including my own not-exactly-progressive state) have regulators who will very much go after owner who don't pay W-2/1099 wages.

OTOH...various forms of stealing tips and such is apparently pretty common, as are various schemes to keep employees 'off books' to avoid oversight.

That said, while that guy is obviously a craven idiot and complete scumbag, I can help but think "I bet he got away with this in Oklahoma (or whatever shithole he crawled out of) and he assumed he could continue to screw over his employees in NYC and is about to find out the hard way that's not true". One can hope.