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 North Carolina, defrauding an innkeeper is a criminal offense under General Statute § 14-110. This statute makes it illegal to obtain any accommodations, food, or other services at an establishment with the intent not to pay. Evidence of refusal to pay or providing a declined credit card or bad check can be used as proof of fraudulent intent. The severity of the charge, whether misdemeanor or felony, typically depends on the value of the goods or services obtained. Regarding employee paycheck deductions, North Carolina law, specifically under the North Carolina Wage and Hour Act (N.C. Gen. Stat. § 95-25.8), generally prohibits employers from making deductions from an employee's wages unless the employee has given written authorization and the deductions are for a lawful purpose. Deductions for walkouts, theft, or shortfalls (including dine and dash incidents) without the employee's written consent are not typically allowed. However, if an employee is considered at-will, they can be terminated for any legal reason, including being involved in a situation where a customer did not pay a bill.