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 Wisconsin, defrauding an innkeeper is addressed under Wisconsin Statute 943.21, which makes it illegal to obtain accommodations or services at a hotel, restaurant, or other establishment without paying, with intent to defraud the owner or manager. This includes obtaining credit through deceit or false pretenses. The statute also covers situations where payment is made with a check or credit card that is not honored. The offense can be charged as a misdemeanor or felony, depending on the value of the services obtained. As for employee paycheck deductions, Wisconsin Statute 103.455 restricts employers from making deductions from an employee's wages for faulty workmanship, loss, theft, or damage without the employee's consent, except where the employee is found guilty or held liable in court. This means that employers in Wisconsin generally cannot deduct the cost of a dine and dash from an employee's paycheck without the employee's consent and due process.