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 Massachusetts, the act of defrauding an innkeeper is addressed under Massachusetts General Laws Chapter 140, Section 12. This statute makes it illegal to obtain food, lodging, or other accommodations at an establishment without paying or with the intent to avoid payment. The law presumes fraudulent intent if a person refuses to pay, provides a declined credit card, or issues a bad check. Depending on the circumstances, the offense can be treated as a misdemeanor or a felony, with penalties ranging from fines to imprisonment. Regarding employee paycheck deductions, Massachusetts law is protective of employees' wages. Under Massachusetts General Laws Chapter 149, Section 150, employers are generally prohibited from deducting any lost or stolen property, or any debts owed by customers, from an employee's paycheck without the employee's written consent. This means that employers in Massachusetts cannot typically deduct the amount of a customer's unpaid bill from an employee's wages. Additionally, while an employer can terminate an at-will employee for various reasons, they cannot make wage deductions for dine and dash incidents without adhering to the state's wage and hour laws.