Employee Theft: Criminal Consequences of Workplace Stealing

Employee Theft: Criminal Consequences of Workplace Stealing

Employees who steal from their employers face serious criminal consequences in Indiana, including misdemeanor or felony charges depending on the value stolen. Penalties range from fines and probation for amounts under $750 to multiple years in state prison for thefts exceeding $50,000. Beyond incarceration, convicted employees face mandatory restitution, permanent criminal records, job loss, and lasting barriers to future employment.

Getting accused of employee theft can turn your life upside down within hours. What starts as an uncomfortable meeting with HR can quickly escalate to police involvement, criminal charges, and consequences that follow you for decades.

As a criminal defense attorney who regularly handles workplace theft cases throughout Kokomo, Indianapolis, and central Indiana, I’ve seen how these accusations unfold—and how the right defense strategy can dramatically affect outcomes. This guide explains the criminal consequences you may face and what steps can make a real difference in your case.

What Is Employee Theft Under Indiana Criminal Law?

Employee theft occurs when a worker takes money, property, or resources belonging to their employer without authorization. Under Indiana Code § 35-43-4-2, theft is defined as knowingly or intentionally exerting unauthorized control over property of another person with the intent to deprive them of its value or use.

Unlike simple theft, workplace stealing often involves a breach of trust. Employers give workers access to cash registers, inventory, financial systems, or confidential information—and prosecutors take this violation seriously.

Criminal charges for employee theft can arise from numerous workplace situations:

• Taking cash from registers, petty cash funds, or customer payments
• Stealing merchandise, equipment, tools, or inventory
• Submitting false expense reports or falsifying time sheets
• Misappropriating funds you were trusted to manage (embezzlement)
• Unauthorized use of company credit cards or accounts
• Stealing trade secrets, customer lists, or proprietary data

Important distinction: Embezzlement specifically involves misappropriating property you were entrusted to manage. According to the U.S. Department of Justice, embezzlement requires that the accused had lawful possession before converting the property for personal use. This breach of fiduciary trust often results in enhanced prosecution.

How Much Jail Time Can You Get for Stealing from Work?

The criminal penalties for employee theft depend primarily on the value of what was stolen. Indiana classifies theft based on dollar thresholds that determine whether you face misdemeanor or felony charges.

Indiana Employee Theft Penalties by Amount Stolen

Source: Indiana Code § 35-43-4-2

Critical warning: Prosecutors often aggregate multiple thefts over time. Taking $50 per week for a year could result in felony charges based on the $2,600 total—not multiple misdemeanors. The Bureau of Justice Statistics reports that employee theft cases involving aggregated amounts frequently result in more severe charges than defendants initially expect.

Beyond incarceration, Indiana courts typically order:

• Full restitution — repaying everything stolen, plus interest
• Probation — often 1-3 years with strict reporting requirements
• Court costs and fees — frequently exceeding $1,000
• Community service hours

What Happens After You’re Accused of Workplace Theft?

The process from accusation to criminal charges typically unfolds in stages. Understanding this timeline helps you make better decisions about protecting yourself.

The Internal Investigation Phase

Most employee theft cases begin with an employer investigation before police ever get involved. HR or loss prevention may ask you to participate in interviews, sign statements, or submit to searches.

Here’s what you need to know: you are not legally required to answer questions or sign anything.

The biggest mistake I see clients make is trying to “explain” their way out during internal investigations. Anything you say to your employer can be turned over to police and used against you in criminal proceedings. Politely declining to answer questions until you’ve consulted an attorney is almost always the smarter choice.

When Police Get Involved

Employers report theft to police for several reasons: insurance claims often require a police report, company policy may mandate reporting, or they simply want to pursue prosecution.

Once law enforcement begins investigating, you have constitutional rights protecting you—including the right to remain silent and the right to an attorney. If police contact you, be polite but firm:

“I’m invoking my right to remain silent and would like to speak with an attorney before answering any questions.”

This isn’t an admission of guilt—it’s exercising your legal rights under the Fifth Amendment.

How Can You Defend Against Employee Theft Charges?

Criminal defense in employee theft cases focuses on the elements prosecutors must prove: that you took property, that it belonged to your employer, and that you intended to permanently deprive them of it. Weakening any element creates reasonable doubt.

Lack of Criminal Intent

Intent is often the most vulnerable element for prosecution. Valid defenses include:

• Genuinely believing you had permission to take the item
• Misunderstanding company policy about taking items home
• Intending to return the property (borrowing vs. stealing)
• Having a good-faith claim that the property was rightfully yours

For example, if your employer provided a laptop for remote work and you continued using it after termination believing it was part of your compensation package, the intent element becomes questionable.

Challenging the Evidence

Many workplace theft cases rely heavily on surveillance footage, inventory records, or statements made during employer investigations. An experienced property crimes defense attorney will scrutinize:

• How evidence was collected and preserved
• Whether proper chain of custody was maintained
• If statements were obtained through coercion or false promises
• Accounting discrepancies that could explain “missing” funds

False Accusations and Misidentification

Sometimes the wrong employee gets blamed. Management fraud, accounting errors, or coworker framing scenarios occur more frequently than most people realize. Your attorney can investigate whether someone else had access and motive.

What Are the Long-Term Consequences of an Employee Theft Conviction?

The criminal penalties—jail time and fines—are only part of the picture. A theft conviction creates ripple effects impacting your life for decades.

Employment consequences: Background checks reveal your conviction, and most employers reject applicants with theft records. According to the Society for Human Resource Management, over 90% of employers conduct background checks on job candidates.

Professional license revocation: Nurses, accountants, teachers, real estate agents, and other licensed professionals face suspension or permanent revocation following theft convictions.

Immigration status: Theft is considered a “crime involving moral turpitude” under federal immigration law. Non-citizens may face deportation proceedings, visa denial, or barriers to naturalization.

Civil liability: Your employer can sue you separately for damages, often seeking treble (triple) damages under Indiana’s civil theft statute.

However, expungement may be possible. Indiana law allows certain convictions to be expunged from your record after waiting periods are satisfied—potentially removing these barriers to your future.

How Kaushal Law Can Help

If you’re facing employee theft accusations or charges anywhere in Indiana, time matters. Early intervention by a criminal defense attorney can sometimes prevent formal charges altogether—or at minimum, preserve evidence and protect your rights before the situation escalates.

At Kaushal Law, Attorney Paul Kaushal brings former prosecutor experience to your defense, understanding exactly how the other side builds these cases. We’ve helped clients throughout Kokomo, Frankfort, Indianapolis, and Howard County navigate workplace theft charges and protect their futures.

Our approach includes:

• Immediate intervention during employer investigations
• Protecting your rights during police questioning
• Challenging evidence and building strong defenses
• Negotiating reduced charges or pretrial diversion when possible
• Pursuing expungement after case resolution

Many first-time offenders qualify for programs that result in dismissed charges upon completion. Others negotiate reduced charges that avoid the most serious long-term consequences. But these options become limited once the case progresses.

Don’t let a workplace theft accusation destroy your future. Contact Kaushal Law today for a free, confidential consultation. Call 765-434-3787 or complete our online form to discuss your case with an experienced Indiana criminal defense attorney who will fight to protect your rights.