Larceny by Employee in NC: G.S. 14-74 Explained

The $1,000 misdemeanor line for ordinary larceny does not apply here. That surprises many people charged after a small till shortage.

This guide is for cashiers, store managers, delivery and warehouse workers and office staff. Many cases start with an audit, a drawer count or a loss-prevention interview.

Whether the property was really entrusted to you decides if this charge fits at all. Its value decides the class.

Your lawyer argues both, depending on the facts of your case.

Asked to sign a statement or a repayment note? Call (336) 379-0539 and talk with a theft defense lawyer in Greensboro first.

What Is Larceny by Employee?

Larceny by employee is when an employee takes or uses property the employer handed over for the business, intending to steal it.

“If any servant or other employee, to whom any money, goods or other chattels … by his master shall be delivered safely to be kept to the use of his master … the servant so offending shall be guilty of a felony.” G.S. 14-74

The statute uses old wording. “Servant” means employee, and “master” means employer.

Money, goods and other property can all qualify. The key is that the employer gave it to you for a job, such as a bank deposit, a cash drawer or a delivery.

Larceny by Employee vs Regular Larceny

Ordinary larceny under G.S. 14-72(a) is a Class H felony only when the value is more than $1,000. At $1,000 or less, it is a Class 1 misdemeanor.

Larceny by employee has no misdemeanor version. A $40 shortage and a $40,000 shortage are both felonies under G.S. 14-74.

That $1,000 line is what makes ordinary larceny a felony; see how felony larceny is charged in Greensboro.

Elements of Larceny by Employee in North Carolina

The State must prove five elements beyond a reasonable doubt. They come from North Carolina’s pattern jury instruction 216.60, which judges read to jurors.

1You Were an Employee

The State must show you were an employee of the business named in the charge.

2Your Employer Entrusted the Property to You

The employer must have given you the property for a purpose. Examples are running the register, making a deposit or delivering goods.

This is where many cases turn. Not every theft at work involves property that was entrusted to you.

3You Used It for Yourself or Someone Else Instead

Instead of using the property for that purpose, you took it for your own use or for another person.

4You Meant to Keep It

You intended to deprive the employer of the property permanently. The jury instruction notes that a temporary deprivation will not suffice.

5You Knew You Were Not Allowed To

You knew you were not entitled to use the property that way. Proof that a manager allowed it goes straight to this element.

If the jury has a reasonable doubt about any one element, the instruction tells it to find you not guilty. Your lawyer looks for the weak element, depending on the facts of your case.

The Statute for Larceny by Employee: Felony Classes Under G.S. 14-74

Every violation of G.S. 14-74 is a felony, and the value of the property sets the class.

The line sits at exactly $100,000. Taking $100,000 or more is Class C, while even $99,999 stays Class H.

At Class C, the Level I presumptive range is 58 to 73 months, about five to six years. That makes the value the State claims worth a close look.

Losses are often added up from register reports, inventory counts and bank records. How the employer reached its total matters.

Larceny by Employee NC First Offense: What the Law Authorizes

A first offense of larceny by employee is still a felony. The sentence the law authorizes depends on the class and your prior record level.

A first offense usually means prior record Level I, the lowest level on the chart in G.S. 15A-1340.17.

Value	Class	Level I Disposition	Level I Presumptive Minimum
Under $100,000	Class H	Community, Intermediate or Active	5-6 Months
$100,000 or More	Class C	Active Only	58-73 Months

The maximum term is set by statute. A 6-month minimum carries a 17-month maximum, and a 73-month minimum carries a 100-month maximum.

Which disposition you get, and where in the range, is argued by your lawyer, not assumed.

Can the Judge Add Time for a Position of Trust?

The State may argue you “took advantage of a position of trust or confidence.” That is an aggravating factor under G.S. 15A-1340.16(d)(15).

The same statute says evidence needed to prove an element cannot also prove an aggravating factor. Entrustment is an element of this charge, so your lawyer can argue that objection.

Restitution to the Employer

For a felony like this, the judge must order restitution to the employer. G.S. 15A-1340.34(b) requires it for victims covered by Article 46.

That article, through G.S. 15A-830(a)(3b), covers felony property crimes such as larceny by employee. If you get probation, paying restitution becomes a condition of it.

Facing a Class C charge, or a value you think is wrong? Call (336) 379-0539 before the first court date.

Larceny by Employee vs Embezzlement

Both crimes punish misusing property you were trusted with. The UNC School of Government calls misusing entrusted property “the essence of both crimes.”

Larceny by employee reaches employees only. Embezzlement under G.S. 14-90 also covers officers, agents, bailees and others who hold property for someone else.

Because the two statutes overlap, the district attorney chooses which one to charge. Your defense depends on which statute is used and what it requires.

If you held the money as an officer or agent, read about an embezzlement charge in Guilford County.

What Happens After Your Employer Accuses You

Cases often start with an internal audit or a loss-prevention interview. The employer then reports to police, and a warrant or summons follows.

A felony charge can first go to a probable cause hearing in District Court. From there the grand jury decides, so it helps to know how a felony indictment works in NC.

A typical case moves from the employer’s audit, to the charge, to an indictment in Superior Court.

Does Paying It Back End the Case?

Paying the money back is not a defense written into G.S. 14-74. It does not end the case by itself.

In State v. Evans, a 2024 Court of Appeals case, a store manager repaid the full amount more than six months after her arrest. The court still held the trial judge was right not to dismiss the charges.

Repayment can still matter at sentencing. Full or substantial restitution is a mitigating factor the judge can find under G.S. 15A-1340.16(e)(5).

Your lawyer can raise repayment with the prosecutor and the judge, depending on the facts of your case.

Defending Larceny by Employee Charges in North Carolina

A defense starts with the elements and the value. Each one is the State’s burden to prove.

Was the Property Entrusted to You?

The State must show the employer gave you this property for a purpose. If you were never trusted with it, the second element is missing.

Permission, Borrowing or a Pay Dispute

The State must prove you meant to keep the property and knew you were not allowed to take it. The jury instruction says a temporary deprivation will not suffice.

A manager’s approval, a payroll advance or a pay dispute can go to intent, depending on the facts of your case.

The Value Claimed

The $100,000 line separates Class C from Class H. Your lawyer checks the register reports, inventory counts and how the losses were added up.

Who Took It

Shared registers, shared logins and gaps in the video can leave real doubt about who took the property.

If company checks were signed or cashed, see how uttering a forged check is charged.

A defense lawyer should see the audit before you give any statement. Any result depends on the facts of your case.

If the same report leads to other charges, start with our Greensboro criminal defense overview.

Shown an audit or asked to repay? Call (336) 379-0539 to talk with our theft defense lawyers in Greensboro.

Frequently Asked Questions

This article explains North Carolina law in general terms. It is not legal advice about your case, and laws, penalties and court procedures change. Contact an attorney about your specific situation.