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 Illinois, defrauding an innkeeper is addressed under 720 ILCS 5/16-3, which makes it a criminal offense to obtain services, accommodations, or the use of property with the intent not to pay for them. This includes food, lodging, and other services provided by establishments like restaurants and hotels. Evidence of refusal to pay or providing a declined credit card or bad check can be considered proof of fraudulent intent. The severity of the offense can range from a misdemeanor to a felony, depending on the value of the services obtained and other factors, with potential penalties including fines and imprisonment. Regarding employee paycheck deductions, Illinois law, specifically the Illinois Wage Payment and Collection Act (820 ILCS 115/9), generally prohibits employers from deducting the cost of a walkout or dine and dash from an employee's paycheck without the employee's explicit written consent. Employers are also restricted from making deductions that would bring an employee's earnings below the minimum wage. However, if an employee is at will, they can still be terminated for reasons related to a customer's failure to pay, provided the termination does not violate other employment laws.