Most states have a specific statute (often called defrauding an innkeeper) that makes it a criminal offense to obtain food, lodging, fuel, or other accommodations at a restaurant, hotel, ski resort, campground, marina, gas station, or other establishment, with the intent not to pay for such goods and services—or to secure credit at such an establishment through fraud or other means of deceit (false pretenses).

Proof that a person refused or neglected to pay for such food, lodging, fuel, or accommodations, or gave payment that was not honored (declined credit card, bad check) is generally proof of such fraudulent intent not to pay for the goods or services.

The definitions and punishment for this criminal offense vary from state to state, but generally may be prosecuted as a misdemeanor or as a felony, and may include confinement in jail or state prison. In some states, if the amount owed was disputed and the amount offered in payment was refused, a person cannot be convicted under the statute.

Employee Paycheck Deductions

Some states have laws—usually statutes in the labor or employment code—that prohibit employers in the service industries (restaurants, bars, hotels) from deducting any amount of a check, bill, or tab owed by a customer from the employee’s pay—but other states do not have laws that prohibit such deductions.

In practice, most employers will not make such deductions unless they believe the employee was negligent or complicit in the walked-out or dine and dash tab. And if the employee’s employment is at will, the employer can generally fire the employee for a dine and dash tab.

In Colorado, defrauding an innkeeper is addressed under Colorado Revised Statutes Section 18-4-401 and 18-4-402, which define the crime of theft. This includes obtaining services such as food, lodging, or fuel without paying or with the intent to not pay. The severity of the offense can range from a petty offense to a felony, depending on the value of the services stolen. If the value is under $50, it is a petty offense; if it is $50 or more but less than $300, it is a misdemeanor; and if it is $300 or more, it is a felony. The proof of intent not to pay can be established by evidence such as refusal to pay or providing a declined credit card or bad check. Regarding employee paycheck deductions, Colorado law, specifically under Colorado Revised Statutes Section 8-4-105, prohibits employers from making deductions from an employee's wages for a walkout or dine and dash, unless the employee is found to be responsible due to dishonesty, willful misconduct, or gross negligence. Employers are also restricted from firing an employee for any reason that would violate public policy, which includes protections for employees who are victims of theft by customers.