What you were doing (by giving 'unauthorized' discounts) is called employee theft. Lets say that the employer (owner) has an item priced at $10.00 and you sell it for $9.00. Simply, you have cost the owner $1.00 in profits. This is not unlike you selling it for $10.00 and only putting $9.00 in the register and the remaining $1.00 in your pocket. If you were going to be generous and give unauthorized discounts, you were obligated to do so out of your pocket, not the employer (owner).
In any case, your action (and by signing the document), you are in violation of the following Maryland Code:
"§ 3-1302.
A responsible person is civilly liable to the merchant:
(1) To restore the merchandise to the merchant or, if the merchandise is not recoverable, has been damaged, or otherwise has lost all or part of its value, to pay the merchant an amount equal to the merchant's stated sales price for the merchandise;
(2) To pay the merchant for any other actual damages sustained by the merchant, not including the loss of time or wages incurred in connection with the apprehension or prosecution of the shoplifter or employee; and
(3) Subject to the merchant's compliance with the procedures contained in § 3-1303 of this subtitle, to pay the merchant a civil penalty equal to twice the merchant's stated sales price for the merchandise, but not less than $50 nor more than $1,000."
In order to make this 'demand', the merchant must have complied with:
"§ 3-1303.
(a) If a merchant elects to seek the civil penalty available under § 3-1302(3) of this subtitle, the merchant:
(1) Shall comply with the procedures contained in this section;
(2) May not orally request or accept any payment at the time of apprehension; and
(3) May not accept any payment in cash without issuing a receipt for the payment.
(b)(1) The merchant shall cause an initial demand letter to be:
(i) Hand delivered personally to the responsible person; or
(ii) Mailed to the responsible person at that person's last known address.
(2) The initial demand letter shall:
(i) Identify the act of shoplifting or employee theft alleged to have been committed;
(ii) Specify the amount of damages sought under § 3-1302(1) and (2) of this subtitle;
(iii) Specify the amount of the civil penalty sought under § 3-1302(3) of this subtitle and explain the method of calculating that amount;
(iv) Request payment of the damages and civil penalty by cash, money order, certified check, or cashier's check;
(v) Contain a conspicuous notice advising the responsible person that payment of the damages and civil penalty does not preclude the possibility of criminal prosecution, but that the payment would not be admissible in any criminal proceeding as an admission or evidence of guilt; and
(vi) Specify the date by which the responsible person shall make the required payment to avoid civil action, which date shall be at least 15 days after the date of hand delivery or from the postmark date, as the case may be, of the initial demand letter.
(c)(1) If payment in full is not received by the merchant on or before the date specified in the initial demand letter, the merchant shall cause a second demand letter to be mailed to the responsible person at that person's last known address.
(2) The second demand letter shall:
(i) Contain the same information, request for payment, and notice that is required by subsection (b)(2)(i) through (v) of this section for an initial demand letter;
(ii) Specify the date by which the responsible person shall make the required payment to avoid civil action, which date shall be at least 10 days from the postmark date of the second demand letter; and
(iii) Advise the responsible person that, if the required payment is not made in full on or before the date specified in the second demand letter, the responsible person will be subject to immediate institution of a civil suit for damages, penalties, court costs, and reasonable attorney's fees.
(d) The merchant shall get a certificate of mailing from the U. S. Postal Service for each initial demand letter and second demand letter mailed to a responsible person under this section."
Source:
http://mlis.state.md.us/cgi-win/web_statutes.exe?gcj&3-1302
http://mlis.state.md.us/cgi-win/web_statutes.exe?gcj&3-1303
In reading the above, you will see that the merchant must do specific things (did he?) and it appears that the merchant can only recover TWO times the ACTUAL loss but not less than $50.00.
How much is he claiming as his ACTUAL loss???