The county liquor board has ruled that Champs Restaurant on Main Street did not serve alcohol after hours on Dec. 1.
Champs had been charged with the offense after board administrator J. Ronald Lau said he saw a woman drinking beer at the bar at about 1:30 a.m.
The bar closes at 1 a.m., and county liquor law says bars and restaurants may not permit anyone to drink alcohol 15 minutes after closing.
The woman testified at a hearing Jan. 8 that she was an employee and was clearing bottles off tables when Lau saw her. The bar manager that night also testified that the only people in the bar then were employees.
Board members, in a decision released Friday, said it was "persuaded" that Abby Lynn Potter, 21, of Westminster, was an employee.
"The board further finds that Mr. Lau did not see her drink from the bottle, and that her explanation is credible," the decision states.