This Indiana lawyer explains what an Indiana employer can do legally in situations similar to yours.
Read it:
Deductions from Your Indiana Paycheck: Is this Legal?
If deductions are arbitrarily taken from your wages to cover the ALLEGED theft, you have the makings of a valid complaint.
Indiana law allows certain categories of deductions to be taken from an employee's wages:
premiums on an insurance policy;
contributions to a charitable organization;
purchase price of bonds, securities or stock of the employing company;
labor union dues;
purchase price of merchandise sold by the employer to the employee;
repayment of a loan to the employee by the employer;
contributions to a hospital service or medical expense plan;
payment to an employee's direct deposit account.
Indiana law says deductions are permissible in the above circumstances if the employee's authorization is in writing, signed by the employee, revocable at any time with written notice, and a copy of the authorization is delivered to the employer within ten days after it is signed.
Now for a troubling announcement for employees in Indiana!
The Indiana Department of Labor accepts Wage Claims as a service to resolve wage disputes. We cannot guarantee compensation. In addition, Indiana law provides no job protection if you are terminated as a result of filing a wage claim against your current employer
DOL: Online Wage Claim Form
I must issue another sad admonishment.
The law is often remiss, reluctant, or useless to people not in that 1%.
It might behoove you, OP, to start looking for a new job.
Unfortunately you're employed by a bully.