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While it would be good to get the wording dropped, not having it in there does not fully protect him. Even without the language, your son could still be charged with a crime. This is because, under Illinois law, there are two issues:
1) the civil dispute between your son and the employer, and
2) the alleged act of theft, which is a criminal matter between your son and the State of Illinois.
#1 can be resolved through an agreement for restitution. After he made the restitution under the agreement, the employer could not sue him.
However, that does not impact the ability for criminal charges to be brought. These could be brought independently, whether the employer wanted to or not. That is up to the local prosecutor/district attorney ( who could learn about it through a disgruntled employee, for example).
So, I would suggest reframing the agreement as a dispute, such as:
"A dispute has arisen between the parties regarding the disposition of funds in the amount of $16,000.00). By reaching this agreement, neither party admits any wrongdoing and each party unconditionally releases the other from liability upon full repayment of the funds by [your son]."
Something to that affect still wouldn't absolutely shield your son from criminal charges, but it also doesn't frame the issue expressly as a criminal matter.
Please let me know, if you have follow-up questions.
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