The department alleges Officer Louis Mota with the Northeast division was seen on camera taking cash from the backpack of an employee of the business.
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While narcotics officers were conducting what was only described as "enforcement" activities at the facility, an employee told an LAPD supervisor that money was missing from her personal backpack.
Investigators secured the scene and checked video footage from closed-circuit cameras installed in the building. The footage led them to conclude that Mota had taken cash from the backpack.
Internal Affairs was notified, his badge, gun and ID were seized and he was taken into custody.
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"No employee of this Department is above the law, and we will not tolerate any individual who betrays the public's trust through this type of behavior," Chief Michel Moore said.
The LAPD says Mota was booked for misdemeanor theft and released on his own recognizance.
He was assigned to home during the investigation.