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 Maryland, defrauding an innkeeper is a criminal offense under Maryland Code, Criminal Law, § 8-606. This statute makes it illegal to obtain food, lodging, fuel, or other accommodations or services at an establishment with the intent not to pay. Evidence of refusal or neglect to pay, or providing a declined credit card or bad check, can be considered proof of fraudulent intent. The severity of the offense, whether it is treated as a misdemeanor or a felony, and the corresponding penalties, such as fines or imprisonment, depend on the value of the goods or services obtained and other circumstances of the offense. Regarding employee paycheck deductions, Maryland law is protective of employees' wages. Under Maryland Code, Labor and Employment, § 3-503, an employer is generally prohibited from making deductions from an employee's wages for shortages, errors, damages, or losses unless the employee has given written authorization, and even then, there are restrictions. This means that employers in Maryland cannot typically deduct the amount owed by a customer from an employee's pay without the employee's consent. Additionally, Maryland is an at-will employment state, meaning that an employer can terminate an employee for any legal reason, including incidents related to customers not paying their bills, provided it does not violate specific legal protections.