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Theft in the Workplace: When Employee Accusations Lead to Criminal Charges

By San Diego Attorney on July 16, 2025

Accusations of theft in the workplace are among the most damaging charges an employee can face. In San Diego and throughout California, an employer’s internal investigation can quickly escalate into criminal charges, even if the evidence is weak or the accusation is based on a misunderstanding.

If you have been accused of stealing from your job, it is critical to understand your rights and the legal defenses available to you. From misunderstandings over company property to procedural violations during the workplace theft investigation, there are several ways to challenge these allegations and protect your reputation and freedom.

What Is Workplace Theft?

Workplace theft, sometimes called employee theft, involves allegations that a worker has taken company property or funds without authorization. These accusations may include:

• Taking merchandise, cash, or tools
• Using a company credit card for personal expenses
• Misappropriating business information or intellectual property
• Falsifying timecards or payroll records
• Stealing from coworkers

In California, these accusations can fall under Penal Code § 484 (theft), § 503 (embezzlement), or even § 459 (burglary) if the employee is accused of entering with intent to steal. The charges may be classified as misdemeanors or felonies depending on the amount involved and whether aggravating factors are present.

How Do Employee Theft Investigations Work?

Most workplace theft allegations begin with an internal investigation by the employer or corporate loss prevention team. These investigations are often handled quickly and with a heavy bias in favor of the employer.

The process typically involves:

• Reviewing surveillance footage
• Examining transaction logs or inventory records
• Conducting interviews with the accused and other employees
• Reviewing emails or system access logs

Unfortunately, the employee under investigation may not be informed of their rights during this process, and statements made to an internal investigator can later be used by law enforcement.

Protocols for workplace theft investigation in California can vary, but employees are often pressured to “explain themselves” before being given full information. This is a risky position that requires immediate legal counsel.

When Internal Accusations Become Criminal Charges

If an employer believes they have enough evidence, they may report the matter to law enforcement or press charges directly. At this point, you are no longer just facing a company policy issue—you are facing criminal prosecution.

A conviction for employee theft can result in:

• Jail or prison time
• Restitution payments
• Probation or parole
• A permanent criminal record
• Career consequences such as job loss and professional license suspension

Whether you are facing petty theft or felony embezzlement, a job theft lawyer can intervene early to prevent the situation from spiraling out of control.

Key Legal Defenses Against Employee Theft Charges

Not every workplace theft accusation leads to a conviction. Prosecutors must prove several elements beyond a reasonable doubt, including that the accused acted with criminal intent. Your defense attorney can challenge the prosecution’s case using several strategies:

Lack of Criminal Intent

Intent is a required element of any theft charge. If the employee believed they had permission to use the property or misunderstood a policy, this could negate criminal intent. For example:

• An employee borrows a company laptop to finish work at home, not realizing this violates policy.
• A manager takes office supplies, believing they were authorized for personal use.

These scenarios do not meet the threshold for theft under California law. A seasoned defense attorney can argue that any misunderstanding or honest mistake should not result in criminal penalties.

Authorization or Implied Permission

One of the strongest defenses in an employer theft case defense is that the accused had actual or implied permission to access or use the property.

In some workplaces, policies are loosely enforced, or management informally authorizes the use of company resources. If the employer fails to clearly define or document its rules, the accused may have acted under a reasonable belief they had permission.

Documentation, emails, or testimony showing such authorization can be critical to your defense.

Lack of Evidence or Ambiguous Proof

Workplace theft accusations often hinge on circumstantial evidence, such as a suspicious transaction or vague video footage. Unless the employer can prove beyond a reasonable doubt that the accused committed the act with intent to steal, the case may be too weak to stand.

Your attorney will examine all the evidence, including surveillance footage, timesheets, transaction logs, and statements, to look for inconsistencies or gaps in the case.

Procedural Errors in the Investigation

In some cases, the way an internal workplace theft investigation is conducted can itself become a legal issue. For example:

• Coercive or threatening tactics used during employee interviews
• Failure to preserve video or digital evidence
• Biased investigative processes targeting one employee over others
• Violations of labor or union rights

These procedural flaws can lead to the exclusion of evidence or even the dismissal of charges. Your defense attorney can file motions to suppress improperly obtained evidence or highlight investigative misconduct to weaken the prosecution’s case.

Wrongful Accusation

It is not uncommon for innocent employees to be falsely accused due to internal politics, mistaken identity, or retaliation. In high-turnover environments or chaotic workplaces, assumptions are often made with minimal verification.

If you are facing wrongful accusations of theft, your attorney may present witness testimony, digital logs, or timecard records to show that you were not responsible—or that someone else could have committed the act.

Reasons to Contact an Attorney Right Away

Many employees wait too long to get legal help because they believe they can “clear things up” with their employer. Unfortunately, what you say to HR or an internal investigator can later be used against you in criminal court.

Finding a qualified lawyer early gives you the best chance to:

• Avoid arrest and formal charges
• Negotiate a civil resolution with your employer
• Limit exposure through pre-trial motions
• Mount a strong courtroom defense if needed

Attorney James N. Dicks of jD Law Criminal Defense Attorneys has over 30 years of experience handling complex theft cases, including those arising from the workplace. As a Certified Criminal Law Specialist and former LAPD investigator, he brings exceptional insight and strategy to each case.

Can These Charges Be Dropped?

Yes. San Diego cases of employee theft charges are often resolved without a conviction, especially when the defense is proactive. Some potential resolutions include:

• Pre-filing intervention: Your attorney contacts law enforcement before charges are filed to explain your side and prevent filing altogether.
• Diversion programs: In some cases, first-time offenders may complete a restitution program in exchange for dismissal.
• Charge reduction: A felony charge may be reduced to a misdemeanor or infraction with effective negotiation.
• Case dismissal: If the evidence is too weak or procedural errors exist, the court may dismiss the charges.

Speak With an Experienced Theft Charges Defense Lawyer in San Diego

Facing accusations of workplace theft can put your career, freedom, and reputation at risk. Do not assume that your employer’s investigation will be fair or that prosecutors will get the full story. An experienced San Diego theft defense attorney can protect your rights, challenge the evidence, and advocate for the best possible outcome.

If you are facing employee theft charges in San Diego, you do not have to do it alone. Contact jD Law Criminal Defense Attorneys today. We can review your case and begin building your defense immediately. Call (760) 630-2000 for a free consultation.