What Happens If You Are Accused of Employee Theft in Minnesota?

An employee-theft accusation can lead to an internal investigation, employment action, a police report, or a civil claim. Those are separate processes, and an employer’s accusation does not establish criminal guilt. Preserve records you lawfully possess and obtain advice before detailed interviews or signing an admission or repayment agreement.

What can count as employee theft?

Allegations may involve cash or goods, company-card transactions, expense reports, or misuse of property. Under § 609.52, the charged form of theft must be proved, including its required mental state. A policy violation, disputed expense, or unexplained shortage alone does not prove every element.

Permission, accounting errors, shared access, and the scope of an employee’s authority may matter. Trade secrets and other specialized allegations require review of their specific statutory definitions rather than assuming all confidential information is treated identically.

How serious are the penalties?

For ordinary theft without a special enhancement, Minn. Stat. § 609.52, subdivision 3, provides these maximum penalties:

• $500 or less: misdemeanor, up to 90 days in jail and/or a $1,000 fine.
• More than $500 through $1,000: gross misdemeanor, up to 364 days and/or a $3,000 fine.
• More than $1,000 through $5,000: felony, up to five years and/or a $10,000 fine.
• More than $5,000: ordinarily up to ten years and/or a $20,000 fine.

These are statutory ceilings, not predictions of a sentence. Qualifying prior convictions, aggregation of thefts, and special circumstances can change the charge or maximum. A prior record does not automatically make every low-value theft a felony. Section 609.52 also has separate rules for particular property and conduct; its 20-year maximum does not apply to every felony theft.

Value and the charged conduct must be checked against the evidence. Not every theft above $35,000 carries a 20-year maximum. See our theft thresholds and exceptions guide.

Employer investigations and wage deductions

An employer may investigate, restrict access, take employment action, report concerns to police, or seek civil recovery. The lawfulness of employment action can depend on separate employment rules. The employer does not control the prosecutor’s charging decision.

Section 181.79 generally restricts deductions from earned or due wages for an alleged employee debt without voluntary written authorization after the loss arises or a court determination of liability, subject to exceptions and deduction limits. An allegation is not unrestricted authority to withhold wages.

Evidence and possible defenses

• Identity: who could access the account, cash drawer, or inventory?
• Intent: do records support a mistake or authorized purpose?
• Permission: what did messages, policies, or supervisors authorize?
• Accuracy: do audits account for refunds, transfers, and recording errors?
• Value: how was the claimed loss calculated and connected to the accused?

What to do if accused

1. Keep notices, proposed agreements, and court documents.
2. Write a factual timeline for counsel while events are fresh.
3. Preserve lawful copies of receipts, approvals, schedules, and relevant messages.
4. Get advice about responding to employer interviews and police questioning, which present different issues.
5. Do not delete records, access restricted systems, or coordinate witness accounts.

Frequently asked questions

Will repayment stop criminal charges?

Not necessarily. A private agreement does not automatically bind police or prosecutors. Review its terms before signing.

Is dismissal of a criminal case the same as reinstatement at work?

No. Criminal, employment, and civil consequences require separate analysis.

What can a lawyer do?

Counsel can assess the evidence, explain options, raise appropriate challenges, and discuss negotiations or a contested defense. See our workplace theft guide for additional preservation questions.

Contact Martine Law to review the accusation, evidence, and available options. No outcome is guaranteed.