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 Utah, defrauding an innkeeper is a criminal offense under Utah Code §76-6-409. This statute makes it illegal to obtain services such as food, lodging, or fuel with the intent not to pay. Evidence of refusal to pay or providing payment that is not honored, like a declined credit card or a bad check, can be considered proof of fraudulent intent. The severity of the offense, whether it is prosecuted as a misdemeanor or a felony, typically depends on the value of the services obtained. Regarding employee paycheck deductions, Utah law, specifically Utah Code §34-28-3, prohibits employers from deducting any amount owed by a customer from an employee's wages without the employee's written consent, except in cases where the employer can prove the employee was responsible due to a willful or intentional act. Employers in Utah cannot simply deduct losses from an employee's paycheck for a customer's failure to pay, such as in a 'dine and dash' situation, unless the conditions for a lawful deduction are met. However, if the employment is at-will, the employer may still terminate the employee for such incidents, provided they do not violate the wage deduction laws.