Employee theft poses a significant challenge for employers, raising questions about the appropriate legal response to such actions. Understanding whether employee theft is considered a civil matter, a criminal offense or a combination of both is crucial for both employers seeking justice and employees defending against accusations. In this blog, we will unravel the legal complexities surrounding employee theft, exploring the distinctions between civil and criminal proceedings, potential consequences, and the factors that influence the path a case may take.

Civil Matters: Employer Remedies and Lawsuits

Employee theft often falls within the realm of civil matters, where employers have the option to pursue legal remedies through the civil court system. Civil actions focus on seeking compensation for financial losses incurred due to the employee's wrongful actions. Here are key aspects of how employee theft is addressed as a civil matter:

  1. Recovery of Damages: In a civil lawsuit, employers can seek to recover damages resulting from theft, embezzlement, or other fraudulent activities committed by an employee. Damages may include the value of stolen property, financial losses, or the cost of investigating the theft.

  2. Civil Lawsuits for Restitution: Employers may file civil lawsuits against the employee to obtain restitution for losses. These cases aim to hold the employee financially accountable for the harm caused to the employer's business.

  3. Preponderance of Evidence: Civil cases typically require a preponderance of evidence, meaning that the evidence must show it is more likely than not that the employee engaged in theft or fraudulent activities. This is a lower burden of proof compared to the "beyond a reasonable doubt" standard in criminal cases.

  4. Settlements and Agreements: In some instances, employers and employees may opt for settlements or negotiated agreements outside of court. These agreements often involve the employee reimbursing the employer for losses in exchange for avoiding a formal legal proceeding.

  5. Employee Termination: Regardless of whether the employer pursues civil action, they may choose to terminate the employee for theft or fraud, depending on the severity of the offense and the company's policies.

Criminal Offenses: Legal Ramifications for Employees

Employee theft can also give rise to criminal charges, as it involves the commission of a crime against the employer. Criminal proceedings are initiated by law enforcement agencies, and if an employee is found guilty, they may face severe legal consequences. Here are key insights into employee theft as a criminal offense:

  1. Criminal Charges: Law enforcement agencies may investigate allegations of employee theft, leading to criminal charges such as embezzlement, larceny, or fraud. The severity of charges depends on factors such as the value of stolen property and the nature of the theft.

  2. Prosecution by the State: Criminal cases are prosecuted by the state, and the burden of proof is higher than in civil cases. Prosecutors must establish guilt "beyond a reasonable doubt" to secure a conviction.

  3. Legal Penalties: If found guilty, employees may face legal penalties, including fines, probation, or imprisonment. The severity of penalties depends on the specific criminal charges and the applicable laws in the jurisdiction.

  4. Restitution Orders: Courts may also order convicted employees to pay restitution to the employer as part of their criminal sentence. This restitution is intended to compensate the employer for financial losses resulting from the theft.

  5. Criminal Records: A criminal conviction for theft can have long-term consequences for the employee, including a criminal record that may affect future employment opportunities and personal reputation.

Factors Influencing the Path: Civil or Criminal

The decision to pursue a civil or criminal case for employee theft depends on various factors, and in some cases, both avenues may be pursued simultaneously. Several considerations influence the direction a case may take:

  1. Severity of the Offense: The severity of the theft often plays a significant role in determining whether the case is treated as a civil matter, a criminal offense, or both. More egregious offenses may trigger criminal investigations.

  2. Evidence Available: The strength and nature of the evidence may influence the choice between civil and criminal proceedings. Clear and compelling evidence may lead to criminal charges, while cases with weaker evidence may be pursued in civil court.

  3. Employer's Preference: Employers have the discretion to decide whether they want to pursue civil remedies, criminal charges, or both. Some employers may prioritize recovering financial losses through civil action, while others may seek criminal prosecution as a form of deterrence.

  4. Cooperation with Law Enforcement: Employers' cooperation with law enforcement agencies can influence whether a criminal investigation is initiated. If an employer reports the theft to the police and provides evidence, it may prompt criminal charges.

  5. Employee Cooperation: Employees who cooperate with their employers, admit wrongdoing, and express a willingness to make restitution may influence the employer's decision on pursuing civil action, criminal charges, or both.

Conclusion

In conclusion, employee theft can be both a civil matter and a criminal offense, with the path chosen often dependent on the specific circumstances of each case. Employers should carefully weigh the factors involved and consult legal professionals, particularly a skilled Criminal Defense Lawyer specializing in Theft, Fraud + Property Crimes, to determine the most effective course of action. Whether seeking restitution through civil remedies or pursuing criminal charges for accountability, employers play a crucial role in addressing employee theft and maintaining the integrity of their businesses.

In the legal landscape surrounding employee theft, seeking guidance from experienced legal professionals is essential. If you find yourself navigating the complexities of employee theft allegations, consulting with a qualified Criminal Defense Lawyer can provide clarity on the available legal options and strategies to protect your interests. Whether pursuing civil remedies, criminal charges, or a combination of both, legal insights can unveil a path toward resolution and justice in the face of employee theft. It is essential to collaborate with a knowledgeable Philadelphia Theft, Fraud + Property Crimes Criminal Defense Lawyer to ensure a comprehensive and effective approach to address the legal complexities associated with employee theft allegations.