I have exactly two clients whose income includes tips, and both are self-employed.  Under the new tax and budget law, one of them qualifies for the new deduction.  (The other doesn't because her husband puts them over the AGI limit.)  But there is nothing that excludes tips from SE tax.  And I think employees get the same treatment, because the deduction only applies to tips reported to the employer, and shown on the W-2 with FICA tax paid by the employee.  

I predict this won't go over well with many tip recipients, especially those who aren't paying any income tax because of other deductions and credits.  They will still receive wage statements showing FICA tax withheld, same as usual.