But is it worth the resentment from said employees? Having to deal with the revolving door of naive new staff that needs to be trained, get up to speed, then leaves again when they realize they're being stiffed or they can do better? It just doesn't feel sustainable.

Not to mention the chance that you'll be found out by the authorities; I want to believe the punishment for wage theft is much more than the savings. Of course, that depends on how many people report it and how much evidence can be retrieved I suppose.