What if I was arrested for shoplifting a $35 store card but the charges dropped? What happens then?

Under Labor Code section 432.7, an arrest which does not result in convictions cannot be considered for employment purposes. However, there are two big caveats to that rule. First, Macy's obviously can continue to refuse to employ you. Second, institutions insured by the FDIC (banks) may not employ anyone charged with theft or fraud, even if the charges were dropped. You may ask the FDIC for consideration under the de minimis rule, but that would be something you'd have to do on your own.