For a restaurant server, getting stiffed on a tip after taking great care of a customer is one of the worst things they have to deal with. Unfortunately, many servers in the United States have found themselves covering the costs of a dine and dash customer who fails to pay their tab when they leave a restaurant.
In the restaurant industry, the term "dine and dash" refers to the act of leaving a restaurant without paying the bill. While this practice is undoubtedly frustrating for owners and staff, it can lead to a range of wage and hour violations that disproportionately affect restaurant employees. Our team at USA Employment Lawyers will explore how dine and dash policies can create legal and ethical issues, particularly regarding wage and hour violations.
Why Dine and Dash Policies Are Enforced
Restaurants use these dine and dash policies to mitigate losses from customers who leave without paying. While these policies aim to protect the restaurant’s bottom line, they can inadvertently lead to wage and hour violations for employees.
In some establishments, employees may be pressured to "cover" for unpaid bills. If a table dines and dashes, management might deduct the amount from the server's tips or wages. This practice not only affects the employee's earnings but may also violate labor laws that protect workers from being held liable for losses incurred due to theft.
Depending on the number of hours worked by the employee each week, this type of policy could result in minimum wage violations and overtime violations.
