Employee “Time Theft” in North Carolina: Civil Dispute or Criminal Charge?

Clocking in for hours you didn’t work, taking unauthorized breaks, or misreporting work time might sound like workplace issues — but in some cases, they can become criminal matters.

In North Carolina, what’s often called “time theft” can cross the line from a civil employment dispute to a criminal charge depending on intent, amount, and evidence. Employers may claim lost productivity or wages, while prosecutors may view it as fraud or larceny if deception is involved.

Contact a criminal attorney today and protect your rights. 

What Is “Time Theft”?

“Time theft” generally refers to an employee being paid for time not actually worked. It can take many forms, such as:

• Falsifying timesheets or clocking in early/late. 
• Having another employee “buddy punch” your time card. 
• Taking long breaks without reporting them. 
• Misusing remote work hours or company resources for personal tasks. 
• Reporting overtime that wasn’t worked. 

From an employer’s perspective, this is a form of wage fraud — being paid for hours you didn’t earn.

However, whether it’s criminal or civil depends on how it’s proven and what evidence exists about intent.

Time Theft as a Civil Dispute

Most cases of time theft are handled internally by employers as employment or contract disputes — not criminal offenses.

Employers may:

• Dock pay or terminate employment. 
• Seek repayment through a civil lawsuit for lost wages. 
• Deny unemployment benefits due to misconduct. 

In civil court, the issue typically centers on breach of contract, violation of company policy, or unjust enrichment (receiving pay not earned).

To pursue civil damages, the employer must show actual financial loss, such as wages paid for unworked hours.

Civil disputes are more likely when:

• There’s no clear proof of intent to deceive. 
• The alleged theft involves minor time discrepancies. 
• The company’s own timekeeping system contributed to the confusion. 

When Time Theft Becomes a Criminal Matter

In some cases, time theft can rise to the level of a criminal offense — typically larceny, embezzlement, or obtaining property by false pretenses — under N.C. Gen. Stat. §§ 14-70, 14-90, and 14-100.

1. Larceny (Theft)

Occurs when an employee intentionally takes something of value belonging to the employer, including wages or benefits obtained dishonestly.

• Class 1 misdemeanor if under $1,000. 
• Felony larceny if $1,000 or more is taken. 

2. Embezzlement

Applies when an employee in a position of trust — such as a manager, accountant, or bookkeeper — diverts company funds for personal gain.

• Always treated more severely than ordinary theft. 
• Penalties depend on the amount and the employee’s role. 

3. Obtaining Property by False Pretenses

Occurs when someone knowingly uses deceit to obtain money or benefits they’re not entitled to.

• For example: submitting false timesheets or logging hours for a project that didn’t exist. 
• Considered a Class H felony if the value exceeds $1,000. 

The key difference between a civil dispute and a crime is intent to deceive. Honest mistakes, timekeeping errors, or unclear company policies are not crimes — but deliberate falsification can lead to arrest.

Examples of Criminalized Time Theft

Here are situations where North Carolina prosecutors have pursued criminal charges:

• Supervisors falsifying payroll records to inflate pay. 
• Remote workers submitting fake activity logs or misusing time-tracking software. 
• Employees clocking in for absent coworkers (“buddy punching”) and splitting the pay. 
• Workers billing hours on government contracts that were never performed. 

In these cases, the pattern of deceit, documentation, and financial loss can convince prosecutors that the conduct was intentional theft.

How Employers Typically Respond

Employers who suspect time theft may take several steps before involving law enforcement:

1. Audit time records and payroll. 
2. Interview employees and managers. 
3. Collect evidence (emails, clock-ins, surveillance footage). 
4. Consult legal counsel to determine whether the matter is civil or criminal. 

If intent and financial loss are clear, the employer may:

• File a police report for theft or fraud. 
• Sue the employee for repayment or damages. 
• Terminate the employee for cause. 

Defenses Against Criminal Time Theft Allegations

If accused of criminal time theft, several defenses may apply depending on the facts:

1. Lack of Intent
   If the alleged false reporting was due to misunderstanding, technical error, or unclear instructions, it may not qualify as a crime.
2. No Actual Loss
   If the employer didn’t suffer financial harm (e.g., missed time offset by unpaid overtime), prosecutors may not meet the threshold for theft.
3. Faulty Timekeeping System
   Companies that use flawed software or manual logs may create inconsistencies mistaken for fraud.
4. Retaliation or Wrongful Termination
   Sometimes, “time theft” accusations are used to justify firing employees after disputes. Evidence of retaliation or bias can help defend your case.

What Employees Should Do If Accused

If you’ve been accused of time theft by your employer:

• Do not sign or admit anything until you speak with a lawyer. 
• Request documentation of the alleged time discrepancies. 
• Preserve your own records — emails, clock-ins, work logs, or screenshots. 
• Avoid confrontation or discussing the matter with coworkers. 
• Contact a criminal defense attorney immediately if the employer threatens legal action. 

Even minor cases can snowball into serious charges if handled poorly.

When to Seek Legal Advice

You should consult an attorney if:

• You’re accused of falsifying time or payroll records. 
• Law enforcement contacts you about a “wage investigation.” 
• You’ve been terminated and asked to repay alleged “time theft.” 
• You’re unsure whether the issue is civil or criminal. 

An experienced North Carolina criminal defense attorney can help determine your exposure, protect you from self-incrimination, and negotiate with your employer or prosecutors.

Key Takeaway

In North Carolina, time theft can be either a workplace issue or a crime — depending on intent and evidence. Honest mistakes or minor discrepancies are civil matters, but deliberate falsification of time records can lead to criminal charges like larceny, embezzlement, or fraud.

If you’re facing allegations of time theft, don’t try to handle it alone. The attorneys at Martine Law can help you understand your rights, review the evidence, and build a defense that protects your future.

Contact us today for a confidential consultation with a North Carolina criminal defense lawyer.