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 Kansas, defrauding an innkeeper is addressed under Kansas Statutes Annotated (K.S.A.) 21-5828. This statute makes it a crime to obtain services such as food, lodging, or other accommodations at an establishment with the intent not to pay. Evidence of refusal to pay or providing a declined payment method can be used as proof of fraudulent intent. The severity of the charge, whether a misdemeanor or felony, typically depends on the value of the services obtained. Regarding employee paycheck deductions, Kansas law, specifically K.S.A. 44-319, prohibits employers from making deductions from an employee's wages for cash shortages, inventory shortages, or loss of property unless the employee has given written consent to the deduction or the property loss is due to the employee's negligence, willful act, or theft. Therefore, in Kansas, an employer cannot deduct the amount owed by a customer from an employee's pay without the employee's written consent, unless the loss was due to the employee's actions as described. Employers do retain the right to terminate at-will employees for reasons related to customers not paying their bills, provided such termination complies with applicable laws.