Is there a way to get a copy of her record? It obviously exists out there somewhere. What if you did some research on her name and see if anyone has reported on her in the press? Find out where she worked before and talk to those people and ask them for anything they have that you can use.
The problem always happens when you are in a junior position to the person you accuse and upper management hates dealing with this type of thing. I will bet anything he took her into his office, had a private meeting with her and she denied everything. Now she is out for revenge because you are a threat. She won't stop until you quit, she has no morals and may even try to ruin your reputation in the industry.
If you can get the dirt on her and proof of her convictions, quit your job, pass the info the someone way up in the company (owner, GM, whomever) and get her fired, then you could probably ask for your old job back. If they won't give you the job back you can sue them for the suffering you went through at the hands of this woman (but you will have to record everything she does to make your life miserable from here on out).
It sucks that people who are criminals can keep getting away with it while making your life miserable. What are the limitations on putting a drop camera device in the meds area and just catch her stealing?
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The owner is your option. But your word is useless without proof.
Can you work on recording her conversations somehow? Or getting proof, and witnesses?
Oh my... No.. I guess you should quit and forget all about this terrible job? Instead of working for someone like this.. who is so horrible and all..
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Bring it up with human resources, sounds like a case of harassment.
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