

I moved away from California before I was old enough to drink, so I don't know
much about the liquor laws there. However, I can answer your question about
spill sheets.
A "spill sheet" (also commonly referred to as a "waste sheet") is just a sheet
of paper used to record product that was spilled, spoiled, prepared in error,
or otherwise disposed of without being paid for. Newer restaurants and bars,
and large chains that regularly update their systems company-wide, generally
have software sophisticated enough to make such accounting systems cumbersome
and obsolete; it's better to just enter the wasted product into the computer
and void it, rather than tallying the inventory by hand. However, plenty of
older stand-alone operations still use them.
I wouldn't be surprised if many establishments used waste sheets to record
complimentary drinks, although all the places I've worked in have either
prohibited them, or have required them to be input normally into the system,
then comped by a manager. If giving away drinks is illegal somewhere, putting
free drinks on a waste sheet would help hide the practice from the
authorities, but I can't imagine it would make it any more legal.
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