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You need to report this to the Indiana Department of Labor in a wage claim. While an employer can certainly punish people for losing their badges (like a write up, demotion or reduction in hourly rate), they can't simply refuse to acknowledge your hours worked. The FSLA allows fines, but only for safety violations and even those my still recognize the minimum wage laws for your hours worked.
You need to file a complaint in the form of a wage claim so that the DOL can investigate the matter. Filing that claim is free and it is a protected activity, meaning that your employer can't legally retaliate against you for filing it.
Go there and file the claim and the state government will set this employer right.