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Types of Employment Theft in California, The More You Know

Posted by Sara Cooper | Aug 24, 2023 | 0 Comments

Employee theft is defined as when an employee engages in acts of embezzlement against their employer. Here is everything you need to know about employee theft laws in California.

Penal Code 503 in the state of California states that embezzlement is claimed as the improper occupancy of property held by a person who has been entrusted, such as the employer with the employee.

Examples of Employee Theft

Inventory Theft: The employee steals inventory or product from their employee, either for personal use or the purpose of selling.

Data Theft: A form of theft that can put the whole company at-risk because the data can include personal and private information about the company and its team, along with sensitive data that can become vulnerable to numerous third parties. Trade secrets can also be stolen as well as client lists.

Services Theft: Discounts for services can be taken advantage of by an employee as a means for keeping the money for themselves. For example, an employee at the front desk of a tax service company can ask an accountant to file their taxes for free, when in reality, the first employee abused their position and used the money of a customer to get their services paid.

Payroll Theft: Money can be stolen from co-workers' paychecks by cashing them and issuing fake checks in alternative. This can more of an issue if the employee is in charge of any financial tasks or the payroll account.

Monetary Theft: Any employee can steal from cash funds of registers to overcharging a customer and keeping the difference for themselves, or not properly conduct their sales book and keep money under recorded.

Punishment for Employee Theft

Per California Penal Code 503, every individual who is guilty of embezzlement will receive punishment that is equivalent to the value of the property embezzled. The stolen property will be evidence in itself of the debt or right of action. In short, the employee would have to pay back the same amount of money they stole from their employer. If the employer is the federal government, or a local or state municipality, the funds embezzled are essentially public funds of the United States. Thus, the offense is considered a felony. The employee would then be subject to imprisonment, and further, the person convicted would be deemed ineligible to any honor, trust, or profit of the state.

Get in Touch with Martens Law Firm

With any concerns or questions about employee theft, contact Martens Law Firm at (661) 466-2142.

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