It is, of course, horrible. But it’s ragingly stupid from a purely transactional view of it. Imagine the liability if the next bartender gets hurt, or worse, because they don’t want to risk having to pay back thousands of dollars.
I often counsel clients that that thing they are thinking about setting as policy might some day be described in a sentence that starts, “Ladies and Gentlemen of the Jury…” And if you think that policy is going to sound bad in that context, one really ought to think twice about that policy.