Sec. 6.1. (a) Notwithstanding any other provisions of this article, all of the individual's wage credits established prior to the day upon which the individual was discharged for gross misconduct in connection with work are canceled.
(b) As used in this section, "gross misconduct" means any of the following committed in connection with work, as determined by the department by a preponderance of the evidence:
(1) A felony.
(2) A Class A misdemeanor.
(3) Working, or reporting for work, in a state of intoxication caused by the individual's use of alcohol or a controlled substance (as defined in IC 35-48-1.1-7), or consuming alcohol or a controlled substance (as defined in IC 35-48-1.1-7) on the employer's premises without employer permission.
(4) Battery on another individual while on the employer's property or during working hours.
(5) Theft or embezzlement.
(6) Fraud.
(c) If evidence is presented that an action or requirement of the employer may have caused the conduct that is the basis for the employee's discharge, the conduct is not gross misconduct under this section.
(d) Lawful conduct not otherwise prohibited by an employer is not gross misconduct under this section.