Understanding the Consequences of Retail Theft on Employment

A retail crime, including employee theft or shoplifting charges, can have serious legal consequences beyond fines, probation/jail time, or time in court. One of the most significant impacts is on future employment. Even a misdemeanor theft charge can create long-term obstacles that can follow a person for many years to come.

For those facing retail theft charges in California, understanding how these crimes affect employment is important. It can help protect both your short-term stability and your long-term career prospects. Goss Law can also provide information on what happens after a shoplifting arrest: the CA legal process.

How Retail Theft Appears on Background Checks for Future Employment

In California, retail theft is most commonly charged under California Penal Code §459.5. It will appear on a background check, even though most people don't consider this to be a serious crime. It is, and it has serious consequences. Employers use background screening services that report misdemeanors, which is usually what a shoplifting charge is. Even a misdemeanor can cause you not to get a job.

Since Proposition 36 passed in November 2024, retail theft can also lead to felony exposure. A person with two or more prior theft convictions can be charged with a felony for a new petty theft or shoplifting (Penal Code 666.1), and the values of multiple thefts can be added together to reach the felony threshold (Penal Code 490.3).

It's important to state that an arrest may not a appear on a criminal background check, but a conviction will, unless it is later dismissed, sealed, or expunged. This means that a single shoplifting conviction will almost likely come up when someone does a background check on you looking for crime data.

Many employers run background checks at multiple stages, including:

• Initial hiring
• Promotions or internal transfers
• Periodic compliance reviews
• Security clearance renewals

Once an employer sees a theft conviction on a background check, they may view the applicant differently. This is especially true for positions that involve trust, money handling, or jobs in the retail industry, specifically in a retail business.

Employer Perceptions of Retail Theft Convictions

Retail crimes are often seen as "crimes of dishonestly." This can raise concerns from employers even if the offense is a minor one. Employers don't want "dishonest" people working in their retail stores, and oftentimes, they see those convicted of theft crimes as having poor judgement, as unreliable, or a risky hire -- even if the person's work history and qualifications are perfect.

Industries where retail theft convictions can be especially damaging include:

• Retail and sales
• Finance and banking
• Healthcare
• Education
• Government positions
• Jobs managing online marketplaces
• Security and loss prevention
• Jobs involving cash handling or inventory

Even if a person was convicted of taking stolen goods many years ago, some employers still will treat the criminal history as a red flag without considering the present.

At-Will Employment, Company Policies, and Termination Risks

California is an "at-will" employment state. This means that an employer can terminate an employment for any lawful reason. But California law limits how employers can use criminal history, as explained below.

If an employer discovers a retail theft conviction when doing a background check, it may be able to:

• Terminate you
• Withdraw a job offer, after following the Fair Chance Act process
• Deny a promotion

In some cases, employment contracts or company policies specifically prohibit certain criminal convictions, making termination more likely, as they may believe that person is more likely to be one committing future crimes.

Disclosure Requirements and Application Challenges

California law does place a limit on when an employer can ask about an applicant's criminal history. This is known as the "ban the box" law, and because of this, an employer cannot ask about convictions, including shoplifting or theft, until after a conditional job offer is made. Even after that stage, Labor Code 432.7 bars employers from asking about or considering an arrest that did not lead to a conviction, participation in a diversion program, or a conviction that was dismissed (expunged), sealed, or otherwise cleared by law.

Applicants should not misstate their record on an application. Lying about a conviction can be its own reason for losing a job. Applicants can, however, answer accurately about convictions that have been dismissed or sealed.

Under the Fair Chance Act (Government Code 12952), an employer that wants to withdraw an offer because of a conviction must do an individualized assessment that looks at the following:

• The nature of the offense
• How long ago it occurred
• Its relevance to the job duties

The employer must then notify the applicant in writing, give them a copy of any background report, and give them a chance to respond before making a final decision.

Even so, the presence of a conviction can still negatively affect hiring decisions. For more information, this theft defense lawyer in Sacramento may be able to help.

Professional Licensing and Career Advancement

It's also possible that a theft conviction, from cash theft to being involved in organized retail crime, can impact your professional licensing. This is especially true in certain fields including the following:

• Healthcare professionals
• Teachers and school staff
• Financial professionals
• Real estate agents
• Contractors
• Government employees

In some cases, a licensing board may deny applications, impose restrictions, or require hearings to address retail theft convictions. Even with legal counsel and going through a legal process, it's unlikely that this will change unless you consider an expungement.

Expungement and Record Relief as an Employment Strategy

For many people, the most effective way to reduce consequences on employment due to retail theft offenses is through the expungement process. Expungement is allowed by Penal Code §1203.4.

An expungement doesn't totally erase a person's record, but it can do the following:

• Improve private employment background checks
• Allow applicants to legally state they have not been convicted in most private job applications
• Demonstrate rehabilitation and compliance with law enforcement agencies

In some cases, it might be possible to seal your record, as this will limit access to the record of theft, property crimes, and shoplifting. This includes felony charges.

How Pending Retail Theft Charges Affect Employment

Even before a case is resolved, pending retail theft charges can create employment challenges. Some employers place employees on administrative leave or suspend them during criminal proceedings—especially when allegations involve dishonesty or theft.

Pending charges may:

• Delay job offers
• Prevent job changes or promotions
• Create workplace tension or scrutiny

Early legal intervention can sometimes lead to reduced charges, diversion programs, or dismissals that minimize employment disruption.

Why Early Legal Representation Matters

The outcome of a retail theft case often determines how severely it will affect employment. An experienced defense attorney may be able to:

• Prevent a conviction through dismissal or diversion
• Reduce charges to minimize employment impact
• Structure plea agreements to preserve record relief options
• Advise on expungement and sealing eligibility

Handling a case strategically from the beginning can protect not only legal rights, but also future employment opportunities.

Moving Forward After Retail Theft Charges

A retail theft charge does not have to permanently define your career. California law offers pathways to minimize the damage, protect employment, and rebuild professional credibility.

If you are facing retail theft charges or dealing with the employment consequences of a past conviction in Sacramento or the surrounding area, understanding your legal options is essential. With the right legal strategy, it is often possible to limit long-term consequences and move forward with confidence. Goss Law has insight on expungement options for shoplifting convictions in CA as well.

Local law enforcement and the National Retail Federation want it known that a person has a theft crime on their record, but it doesn't have to stay there. Small companies, major retailers, and federal agencies will do their best to get stolen property back by using anti-theft measures and other tactics in retail establishments.

You, however, have options. Reach out to Goss Law to find out if your record is eligible for expungement and what you can do to reduce the effect retail theft charges on your criminal record have during the hiring process.