Facing an accusation of employee theft in Texas is not a minor workplace matter, it is a criminal allegation that can lead to lasting consequences, both legally and professionally. Under Texas law, these cases often involve detailed investigations, company records, and sometimes law enforcement interviews before formal charges are even filed. By the time an employee learns they are a suspect, evidence may already be in the hands of the prosecution, and statements they have made to supervisors or investigators could be used against them. The stakes are high because the value of the alleged loss directly affects whether the charge is a misdemeanor or a felony, and the penalties can range from fines to years in prison.
Texas Employee Theft Lawyer
Below, The Law Office of Kevin Bennett explains the critical aspects of employee theft cases, including key legal definitions, penalty ranges under Texas statutes, potential defenses tailored to workplace-related allegations, important stages of the criminal process, and how a focused defense strategy can make a difference in the outcome.
Kevin Bennett always seeks to have honest and open communication with his clients. He knows this can be a difficult time that is made easier by knowing and understanding what is happening. Kevin Bennett personally handles every aspect of your case.
Call The Law Office of Kevin Bennett today at (512) 476-4626 to set up a free consultation. Kevin Bennett represents people throughout Travis County, including Austin, West Lake Hills, Sunset Valley and Lago Vista.
Overview of Employee Theft in Texas
- Texas Employee Theft Laws and Penalties for Workers
- Key Things a Jury Considers in Texas Employee Theft Cases
- Defenses to Employee Theft Charges in Texas
- Frequently Asked Questions
- Resources
Texas Employee Theft Laws and Penalties for Workers
Theft by an Employee Under Texas Penal Code Section 31.03 — This statute is the primary law that governs most workplace theft cases involving employees in Texas. It makes it a crime to unlawfully take property with the intent to permanently deprive the owner of it. In an employment setting, this often means taking company money, merchandise, equipment, or other assets without permission. Appropriation is unlawful when it occurs without the owner’s effective consent, when the property is already stolen and the accused knows it, or when law enforcement represents property as stolen and the accused believes it to be stolen.
The seriousness of the charge depends on the value of the property taken. If it is worth less than $100, the offense is a Class C misdemeanor. It becomes a Class B misdemeanor for property worth $100 or more but less than $750, or if the value is under $100 but the accused has a prior theft conviction, or if the item is an identification card. A Class A misdemeanor applies when the value is $750 or more but less than $2,500. Felony levels start at state jail felony for property worth $2,500 or more but less than $30,000 and increase through first-degree felony for property worth $300,000 or more. The law also provides enhanced penalties if the accused is a public servant, contracted with the government, targeted an elderly individual or nonprofit, or used certain methods such as disabling a theft detector.
Theft of Service by an Employee Under Texas Penal Code Section 31.04 — This offense applies when a person intentionally avoids paying for services they know are provided only for compensation. In the workplace, this can occur if an employee uses company services, labor, or equipment for personal benefit without authorization or payment. It also includes situations where the accused secures services by deception, threat, or false agreement to pay and then fails to make full payment after the service is rendered. The law presumes intent to avoid payment in certain circumstances, such as absconding without paying or failing to return rented property within the required time after notice is given. Penalties mirror those in Section 31.03, ranging from a Class C misdemeanor for services worth less than $100 to a first-degree felony for services valued at $300,000 or more.
Theft of Trade Secrets by an Employee Under Texas Penal Code Section 31.05 — This statute criminalizes the unauthorized taking of trade secrets, which can include formulas, designs, prototypes, customer lists, or other confidential business information. In the workplace, this applies when an employee copies, transmits, or otherwise appropriates protected company information without consent, intending to benefit themselves or another party. A violation of this law is generally charged as a third-degree felony, carrying the possibility of two to ten years in prison and a fine of up to $10,000. The exact consequences can vary depending on the circumstances and whether other charges are filed in connection with the same conduct.
Fraud by an Employee Using Company Credit Cards or Financial Information — Under Texas Penal Code Section 32.31, credit card or debit card abuse occurs when a person uses a card without consent, uses an expired or revoked card, or otherwise obtains goods or services by fraudulent card use. In an employee theft setting, this can involve misuse of a company-issued card or a customer’s card information. The offense is generally a state jail felony but can be increased to a third-degree felony if committed against an elderly individual.
Fraudulent Possession of an Employer’s Credit Card or Debit Card Data — Texas Penal Code Section 32.315 addresses situations where a person obtains, possesses, transfers, or uses credit card or debit card data without the account holder’s consent, with the intent to harm or defraud. An employee who collects or misuses such data from workplace systems can face charges under this section. The penalty depends on the number of items involved, ranging from a state jail felony for fewer than five to a first-degree felony for 50 or more.
False Statement by an Employee to Obtain Property or Credit — Under Texas Penal Code Section 32.32, a person commits an offense by making a materially false or misleading written statement to obtain property or credit, including loans, goods, or services. In the workplace, this can occur if an employee falsifies documents to access company resources, benefits, or lines of credit. The punishment level depends on the value involved, starting with a Class C misdemeanor for less than $100 and reaching a first-degree felony for $300,000 or more.
Hindering Secured Creditors by an Employee — Texas Penal Code Section 32.33 makes it an offense to destroy, remove, conceal, or otherwise harm property subject to a lien or security interest with the intent to hinder enforcement of that interest. In the workplace, an employee might face such a charge if they interfere with property the company has financed or pledged as collateral. Penalties range from a Class C misdemeanor to a first-degree felony, depending on value.
Trademark Counterfeiting or Criminal Simulation by an Employee — Employees involved in creating, selling, or possessing counterfeit goods bearing the employer’s trademarks, or altering items to make them appear more valuable than they are, can be charged under these statutes. The level of the offense depends on the retail value of the goods or services, starting at Class C misdemeanor and going up to a first-degree felony.
Key Things a Jury Considers in Texas Employee Theft Cases
Intent to Deprive — Jurors examine whether the evidence shows a clear intent to permanently keep property or services from the rightful owner. In employee theft trials, this means proving the accused did not merely borrow an item or plan to return it, but intended to keep it for good or for long enough to significantly reduce its value or usefulness.
Effective Consent — Consent from the employer or an authorized person must be genuine and lawful. If the accused obtained property by lying, withholding key facts, or using pressure, the consent is not valid under Texas law.
Knowledge of Wrongdoing — The State must prove the accused knew the property was stolen or that their actions were unauthorized. This can be complex because many employees have access to company property.
Value of Property or Services — Because penalties depend on value, jurors assess credible proof of worth at the time of the alleged theft. This can include receipts, invoices, market comparisons, or testimony from company representatives.
Possession and Control — Jurors decide whether the accused actually exercised control over the property, either physically or through digital access. The prosecution must link the accused directly to the property and show they could determine its use or location without permission.
Evidence of Deception or Concealment — Altered documents, disabled security devices, or manipulated records can suggest intentional concealment. Such actions may support the claim of intent and knowledge, making them persuasive to a jury.
Pattern or Course of Conduct — Texas law allows prosecutors to combine multiple thefts into one charge if they are part of a continuing scheme. Jurors may consider repeated acts over time to help establish intent, refute accidental taking, and increase the total value involved.
Defenses to Employee Theft Charges in Texas
Lack of Intent to Steal — In workplace theft cases, the prosecution must prove beyond a reasonable doubt that the employee intended to permanently deprive the employer of property or services. A defense can be raised if the employee reasonably believed they were entitled to the property, such as thinking it was discarded, part of a bonus, or authorized for personal use.
Effective Consent From the Employer — An employee may avoid conviction if they can show that someone with lawful authority within the company gave genuine permission for the use or removal of the property. This might include authorization from a supervisor, manager, or company owner.
Mistaken Identity in the Workplace — Employee theft accusations can arise in environments with shared access, such as stockrooms, cash drawers, or computer systems. If the prosecution cannot directly tie the accused to the missing property—through reliable surveillance, access logs, or credible eyewitness accounts—the defense can argue mistaken identity, especially in workplaces with multiple people handling the same assets.
Challenging the Value of the Alleged Theft — The severity of a theft charge under Texas law depends largely on the value of the property or services. In workplace cases, employers may overestimate losses by including unrelated shortages, speculative figures, or inflated replacement costs. The defense can counter with independent appraisals, inventory records, or expert testimony to establish a lower value, potentially reducing a felony to a misdemeanor.
Insufficient Evidence of Unauthorized Taking — Simply having access to property does not prove theft. In many employee theft prosecutions, there is no direct evidence that the accused removed or misappropriated the property. The defense can highlight gaps in security footage, inconsistencies in witness accounts, or the absence of clear proof showing the accused acted without effective consent.
Frequently Asked Questions
What is considered employee theft in Texas?
Employee theft in Texas occurs when a worker unlawfully takes an employer’s property or services without effective consent, intending permanent deprivation. Conduct can violate Texas Penal Code Sections 31.03 or 31.04, depending on whether tangible property or services are involved.
Can a person be jailed for workplace theft in Texas?
Yes. Depending on value and circumstances, workplace theft charges can range from a Class C misdemeanor to a first-degree felony under Texas Penal Code. A conviction can carry fines, probation, or significant jail or prison sentences.
Does paying back stolen property end an employee theft case?
Repayment may influence negotiations or sentencing but does not automatically terminate prosecution under Texas Penal Code theft provisions. The State can proceed with charges regardless of repayment if evidence supports unlawful appropriation or theft of services by the employee.
Is workplace theft a felony in Texas?
Workplace theft becomes a felony when the property or services are valued at $2,500 or more or meet statutory aggravating factors. Texas Penal Code Sections 31.03 and 31.04 set penalties that escalate based on value and specific circumstances.
Can an employee theft charge be dismissed?
A dismissal is possible if the defense establishes lack of intent, valid consent, mistaken identity, or insufficient evidence under Texas theft statutes. Prosecutors and courts assess evidence strength, witness credibility, and applicable statutory defenses before considering dismissal.
How is the value calculated in a workplace theft case?
Under Texas Penal Code Section 31.08, value is generally the fair market value at the time of the offense. For employee theft, this can involve invoices, inventory records, or expert valuations, which may be contested by the defense.
What defenses are used in Texas employee theft cases?
Defenses can include proof of effective consent, lack of intent to deprive, mistaken identity, or disputing valuation. These are applied under relevant theft statutes, requiring evidence such as workplace policies, witness testimony, or records contradicting the prosecution’s claims.
Does workplace theft include taking digital data in Texas?
Yes. Taking confidential business information without authorization may constitute theft under Texas Penal Code Section 31.05 if trade secrets are involved. Other statutes may apply depending on whether the data has commercial value or violates computer crime provisions.
Can multiple small acts of employee theft be combined?
Texas law permits aggregation of amounts under a continuing course of conduct to determine the offense grade. For employees, repeated takings over time may be combined, potentially elevating a misdemeanor to a felony under Penal Code Section 31.09.
Will a conviction for workplace theft affect future employment?
Yes. A conviction under Texas theft laws creates a permanent criminal record involving dishonesty. Employers often consider such offenses disqualifying for positions of trust or handling money, and expunction or nondisclosure is limited for theft convictions in Texas.
Resources
Texas Penal Code Chapter 31 — Theft — This section of the Texas Penal Code defines theft—related crimes, including general theft, theft of service, and theft of trade secrets. It explains key terms, outlines how theft is classified based on value or circumstances, and details penalties.
Texas Penal Code Chapter 32 — Fraud — This section covers fraud—related offenses in Texas, including forgery, credit card abuse, trademark counterfeiting, and false statements to obtain property or credit. It provides definitions, explains how value is determined, and lists penalties by offense level.
Workplace Investigations — Basic Issues for Employers — This resource from the State of Texas provides an overview of how employers should handle workplace investigations. It covers legal obligations, privacy concerns, investigation procedures, and potential legal issues. It also outlines steps for planning, conducting, and documenting investigations, along with guidance on selecting investigators and protecting confidentiality.
The Most Common Types of Employee Theft in 2023 — And How to Prevent Them — This article from HR Acuity explains different types of employee theft, including merchandise, supply, money, and data theft. It outlines warning signs, prevention strategies, and investigation steps. The resource also discusses legal considerations, remote work implications, and policy recommendations for organizations to prevent and respond to theft.
Theft in the Workplace — Insights for Professionals — This source explains different types of employee theft, including tangible and intangible theft, and outlines why employees might steal from the workplace. It provides common warning signs, discusses legal and HR considerations for investigating theft, and offers eight strategies for prevention.
Kevin Bennett | Austin Employee Theft Defense Attorney
If convicted of theft, you can face serious jail or prison time, significant fines, restitution, community service, embarrassment and a serious blemish on your permanent criminal record. Kevin Bennett is an experienced Austin theft crimes lawyer who understands the importance of avoiding a theft conviction and will work hard to see that your case is given the attention needed. Contact The Law Office of Kevin Bennett at (512) 476-4626 for a consultation in your Employee theft case in Austin, Texas or Travis County.
