When Can a Business Legally Refuse Service?

As a business owner, you may be wondering: When can you legally refuse service? Whether you want to place a sign on your door requesting that people wear shoes or a shirt to get service or you have dealt with a rude customer for several months or years, knowing when your business is legally allowed to refuse service can be very difficult and complicated.

No matter what type of business you have or why you want to refuse service, speak with a Nashville business law attorney first before you end up in court.

Examples of reasons a business might give for refusing service in Nashville, TN

There are many reasons why a business might want to refuse service to clients or customers, such as:

• A person is acting rude or causing a disruption to other clients or customers.
• Your business has reached capacity and it is unsafe for anyone else to enter.
• Your business requires a certain dress code, and a client or customer is not following the dress code. For example, a bar, club, or fancy restaurant may require a specific dress code.
• You do not allow animals, and a client or customer brought their dog to your business. If the dog is a service animal, you most likely cannot refuse service.
• Your business has already closed for the day.
• Other clients or customers fear for their life or safety because of a client or customer’s behavior.
• A client or customer is showing signs or being sick and contagious or has noticeable poor hygiene, which may be a safety risk to other clients or customers.

Does my “right to refuse service” sign mean anything legally?

It is not uncommon to go to a local convenience store, gas station, or a restaurant and notice a sign that says, “We reserve the right to refuse service to anyone for any reason” or “no shirt, no shoes, no service.” These signs became popular several decades ago when business owners wanted to prevent certain customers from dining, shopping, or simply walking into their businesses.

While businesses are usually allowed to have these signs, the signs are typically used to make a specific statement or to let customers know what is expected of them when they enter the facility. The signs do not give the business the right or permission to refuse service to anyone they want without a valid reason. If they do so, there is a good chance that the court could find the actions of the business to be discriminatory regardless of what the sign says.

However, if you have a valid reason for refusing service to a customer or client, such as they were being disorderly and disrupting the experience for other customers or clients, you most likely can refuse service to the individual regardless of whether you have a sign or not. Signs alone do not give businesses the right to refuse services; there must be a valid reason behind the refusal, and it cannot be discriminatory.

Do federal and state laws protect business owners who refuse service?

Federal and state laws only allow business owners to refuse service for certain reasons. Therefore, if you are not violating the Civil Rights Act of 1964, the Americans with Disabilities Act, or similar federal or state laws, you may have a nondiscriminatory reason for declining service to certain customers or clients.

However, you must keep in mind that even if you are legally allowed and have a valid reason to refuse service to someone, you could jeopardize your business’s reputation, receive backlash from the community, or face a lawsuit by someone claiming he or she was discriminated against.

What should I do if I am sued for refusing service?

If you choose to refuse service to a client or customer for any reason, you may be sued regarding the situation. This may cause you to feel stressed, frustrated, and terrified, which is normal.

However, you should not sit in these feelings too long as you need to take legal action as quickly as possible. You can do so by consulting with a business law attorney at your earliest opportunity to find out if the person who filed the suit has a potentially successful claim and what you can do to fight it. The following are four of the ways that a lawyer can help you if you are sued:

1. Your attorney will review your case and look at all the factors involved: When you receive notice that you are being sued by a customer or client, the first thing you should do is hand it over to your lawyer. Your lawyer will review it, ask about your side of the story, and determine what you should do regarding this suit.
2. Your attorney will help you preserve and collect evidence to fight against the lawsuit: If the lawsuit looks accurate and you decide to fight against it, your attorney will ask you to preserve and collect all evidence related to the case. This may include photos, videos, emails, text messages, and more. For example, if you refused service to someone for being loud and obnoxious, which caused your other customers or clients to feel afraid or worried about their wellbeing, you may want to show video footage of the individual acting obnoxious or rowdy.
3. Your lawyer will communicate with your insurance company and let them know about the suit filed against you: As a business owner, you likely have a business insurance policy to help you if you are ever sued. Therefore, your attorney will handle all communication with your insurance company, let them know about the suit filed against you, and see if your insurance policy covers any part of the lawsuit.
4. Your attorney will either help you reach a resolution with the customer or prepare to take your case to trial: It can be difficult to know what to do or where to turn when you receive a lawsuit against your business. However, a business law attorney is equipped with the tools and resources to help you navigate this challenging time. Your attorney will go over the complaints that were made against you and explain how this might impact your business going forward. After learning this information, you and your attorney will decide whether it is worth going to trial or settling outside of court. Your lawyer will go over every legal route that you can possibly pursue and help you weigh out the advantages and disadvantages of each. If you decide to take the case to court, your lawyer will build a strong case and prepare to represent you.

The Law Office of Perry A. Craft, PLLC takes pride in protecting the rights of business owners around the Nashville area. If you have questions or concerns or simply want to know what type of legal services that we can help your business with, please call us or contact us today. Nashville business law attorney Perry A. Craft is committed to making the legal process for business owners as easy and stress-free as possible.