Many employment-related lawsuits seeking financial compensation feature employees as plaintiffs. Workers who allege that companies violated their rights or caused them financial harm may seek compensation by taking their complaints to the civil courts.
However, employers have rights under the law as well. They may choose to take legal action in cases where workers have clearly violated the terms of an employment contract, possibly by disclosing trade secrets or starting a competing business. In cases where employees cause direct economic harm through the misappropriation of company resources, employers may presume that prosecution of the employee is the only option available.
State law makes embezzlement a crime punishable via fines, jail time and possibly restitution. Regardless of whether or not an employer decides to reach out to prosecutors to bring charges against a worker, it may be possible to take legal action against them in civil court for the financial harm they caused the company.
Embezzlement can be grounds for a civil lawsuit
Businesses can hold individuals accountable for more than just contract breaches. When they engage in overt misconduct that causes the company financial hardship, the company could pursue a lawsuit. Employers have a decent chance of prevailing in civil court if the criminal courts have already successfully convicted the employee or they pleaded guilty to embezzlement charges.
Even if they decline to involve state authorities in the matter, they may have adequate financial documentation to bring a successful case in civil court. The amount of evidence required to seek compensation from a worker who embezzled is lower than the amount of evidence required to secure a criminal conviction.
Employers need to show that a preponderance of the available evidence supports the allegation that the employee intentionally engaged in the misappropriation of company assets. Employers could seek reimbursement for embezzlement related to the theft of physical resources, the interception of client payments, the misappropriation of cash or even the abuse of expense accounts.
Initiating a civil lawsuit against a former employee who stole from a company could help an employer recoup lost resources. Organizations may need help evaluating their options and reviewing financial records to prepare to take an embezzlement-related lawsuit to civil court, and that’s okay.