Aley Moyer

The Californian 2025 Q1 – NEW CALIFORNIA LAWS FOR 2025 FOCUS ON CANNABIS CAFES, PARKING RULES, RETAIL THEFT, AND LAWSUIT REFORM

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NEW CALIFORNIA LAWS FOR 2025 FOCUS ON CANNABIS CAFES, PARKING RULES, RETAIL THEFT, AND LAWSUIT REFORM

Barry A. Bradley, Esq., Bradley, Gmelich + Wellerstein, CALSAGA Legal Advisor

Governor Gavin Newsom signed more than 100  bills last year that went into law January 1st.  Now that we’re through the New Year festivities and reality has set in, here are a few of the highlights that may impact you in both your personal and professional life.

Huh? Coffee Shops Don’t Necessarily Sell Coffee Anymore?

With the legalization of cannabis cafes in California over the past decade, those business owners were forbidden from selling food prepared on the premises.  Well, the munchies have won.  Thanks to AB 1775, the Coffee Shop scene will be similar to those in Amsterdam. Yes, soon patrons will be able to imbibe their weed-related products, and then eat food prepared on the premises when the munchies set in.  Local jurisdictions can also now allow for live music and other entertainment to create a true dining night out experience.

Now You See Me!  A New Law Prohibits Parking Close to Crosswalks

Crossing a crowded street just got a bit safer.  Thanks to AB 413, parked cars that block a driver’s sightlines from a pedestrian will now get a big fat ticket.  It is now illegal to park a vehicle within 20 feet of the vehicle approach side of any marked or unmarked crosswalk or within 15 feet of any crosswalk where a curb extension is present. The typical fine for this type of parking violation is $250. Ouch!

Changes To Driver’s License Requirements on Job Postings

 In a groundbreaking move, California has reformed its employment practices by limiting when employers can require a driver’s license from job applicants. As part of Senate Bill 1100, a new mandate prohibits the inclusion of driver’s license requirements in job postings unless driving is an essential function of the position. Employers are to consider whether alternative transportation methods, like ride-hailing, carpooling, biking, or walking, could reasonably meet job needs without incurring extra time or cost for them.

Supporters argue this law is aimed in reducing longstanding inequities in hiring practices, particularly those unable to drive due to financial, personal, or logistical constraints, or who rely on public transportation.

Positions that legitimately require driving, such as patrol drivers or roles in logistics and transportation, can still require a driver’s license. However, for many other roles, employer demands for a driver’s license will need to be reevaluated. Employers must adjust job descriptions and postings accordingly, ensuring compliance with the new standards or risk legal consequences.

Under the California Fair Employment and Housing Act (FEHA), any misuse of driver’s license requirements is considered an unlawful employment practice. This means organizations may face penalties, including covering attorney’s fees for successful plaintiffs.

Lessons for Employers:

– Remove references to driver’s license requisites from job applications and ads unless driving is undeniably essential to job duties.

– Conduct thorough reviews of job descriptions to ensure that any driver’s license requirement is justified, focusing only on roles where driving is a fundamental responsibility (like vehicle patrol and transportation or logistics services).

Reminder to Employers: Minimum Wage Increase in California for 2025

California employers are reminded of an important change in the state’s labor regulations: an increase in the minimum wage. Effective January 1, 2025, the minimum wage for all employees in California rose to $16.50 per hour. This increase, as outlined in Labor Code 1182.12, is an effort to support the cost of living adjustments and ensure fair compensation for all workers in the state.

(Fast Food Restaurant employers, effective April 1, 2024, and Healthcare Facility employers, effective October 16, 2024, have a higher minimum wage.  Some cities and counties have higher minimum wages than the state’s rate. Here is a list of City and County minimum wages in California maintained by UC Berkeley.

Additionally, this rise in minimum wage will correspondingly affect the salary threshold for exempt employees, which will increase to $68,640 annually. Employers are advised to review their payroll structures to ensure compliance with these new requirements by the effective date to avoid penalties and any potential legal issues.

One significant aspect of this legislation is its adjustment mechanism tied to the Consumer Price Index (CPI). Moving forward, the minimum wage will be adjusted annually based on changes in the CPI. This means that employers should anticipate and budget for potential annual adjustments to the minimum wage that align with economic indicators related to inflation and the cost of living.

Boring But Important:  California Takes a Bold Step with New PAGA Reform

In a move intended to shake up the landscape of labor litigation in the state that has hit employers unreasonably hard, Governor Newsom signed SB 92 and AB 2288 into law. This significant reform of the Private Attorneys General Act (PAGA) aims to streamline processes and provide clarity on how penalties are assessed.

Although signed last year and effective July 1, 2024, this new legislation effectively removed the planned repeal vote of PAGA from the recent November ballot. Previously, PAGA allowed employees to file suit for Labor Code violations on behalf of themselves and others, even if they had not been subject to all of the penalties alleged in the lawsuit. Civil penalties in these cases amounted to $100 to $200 per violation per employee per pay period—75% of which went to the State. For each violation, it could result in penalties up to $10,400 per employee per year.

Enter the PAGA reform. Employers are granted the opportunity to limit or even avoid penalties if they demonstrate they’ve taken reasonable steps to comply with employment laws, both before and after receiving a PAGA notice. Caps on penalties have also been introduced, showing sympathy for those drowning in paperwork and their ill-fated handbooks.

To avoid piling misfortune, the reform does away with “stacking” of penalties for the same violation, which resulted in multiple penalties for the same alleged offense, sometime three or four times over.

Employers who prove they’re striving to do right by the book—especially those working their way with compliance efforts before a PAGA notice is served—will see their penalties capped at 15%. Meanwhile, making such efforts post-notice offers a 30% cap, providing a cushion for those catching up with the fast-evolving legal landscape.

For further insight into the significance of this reform, please see my partner, Jaimee K. Wellerstein’s comprehensive breakdown in her article, Good News for California Employers – PAGA Reform Is Here!   A must-read for anyone eager to understand how these changes could impact their business dealings—minus the legalese overload.

New Act Aims for Safer Active Shooter School Drills

The Safe and Prepared Schools Act in AB 1858 sets important guidelines for active shooter and armed assailant drills in California schools to reduce potential trauma for students and staff. This new law amends the education code, which already requires comprehensive safety plans for K-12 schools.

While not mandatory, 93% of schools conduct these drills, according to the California State Auditor. The legislation seeks to ensure that drills are age-appropriate and free from high-intensity methods like simulated gunfire. Schools must also inform parents before the exercises.

Starting by June 15, the California Department of Education will provide best practices for these drills, balancing emergency preparedness with students’ mental well-being. This act highlights the importance of safety alongside a commitment to psychological health in schools.

We’re Sick and Tired, and We’re Not Going To Take it Anymore! 

Increased Penalties and Easier Prosecution For Retail Theft

 Receiving the message loud and clear, the California legislature passed a sweeping set of new laws aimed at deterring criminal conduct.  By enhancing the ability to charge offenders and significantly easing cross-jurisdictional prosecutions, California seeks to address the frustration felt by communities and retailers alike. This legislative overhaul aims to restore order and ensure that criminal behavior is met with appropriate consequences.

Simplifying Prosecution of Retail Theft:

One of the cornerstones of this legislative package is Assembly Bill 2943, designed to facilitate the prosecution of retail theft offenses by allowing for the aggregation of losses to meet the felony threshold. Under this bill, individuals can face felony charges if they commit multiple thefts totaling over $950, even if these crimes occur against different victims or in varying locations.  Here are some key provisions:

  • Grand Theft Charge: Previously, an individual could be charged with grand theft if property taken surpassed $950 in related acts. The new law clarifies that these acts can occur across multiple victims or counties.
  • Possession of Unlawfully Acquired Goods: It becomes a crime to possess items obtained unlawfully if not for personal use, especially if intended for resale. The $950 felony threshold remains, but now includes goods aggregated over two years.
  • Warrantless Arrests: Law enforcement officers now have the authority to perform warrantless arrests for misdemeanor shoplifting, given probable cause, even if the crime wasn’t directly witnessed in their presence.

Expanding Legal Tools:

  • Assembly Bill 1779:This bill facilitates the aggregation of theft offenses across different jurisdictions, streamlining the process of pursuing charges against offenders operating in multiple locales.
  • Senate Bill 905: It establishes entering an unlocked vehicle with the intent to commit theft as a criminal act. This provision aims to close loopholes previously exploited by individuals targeting vehicles.

Qualified Managers for Private Patrol Operators (PPO’s)  Now Required to Renew License Every Two (2) Years, Starting in 2025 

For those of you who are Qualified Managers for a PPO, and have been since, well, forever, thanks to AB 1244 (and effective January 1, 2025), you will now have to go online to Breeze and apply for a license renewal.  It is retroactive and your renewal date depends on the month and year of original issuance.

QMs will now have their own License, which can receive its own citations and fines.  For more information, here is the Bureau’s “Private Patrol Operator Qualified Manager (PPQ) Certificate Update.”  Stay tuned, because the wrinkles aren’t smoothed out yet.

If you have any questions regarding the New Laws of 2025, or need guidance in your business and employment practices, reach out and contact us.

Barry A. Bradley is the managing partner of Bradley, Gmelich & Wellerstein LLP where he oversees the firm’s Business and Employment Department and heads up the firm’s Private Security Litigation Team.  A former Deputy District Attorney, Barry’s practice concentrates on contracts, licensing, employment and business-related issues, defending cases involving negligent security, as well as assisting clients in avoiding liability through proactive, preventative measures. 

The firm acts as general counsel for many security companies in California.  Barry is a Legal Advisor to The California Association of Licensed Security Agencies, Guards & Associates (CALSAGA) and other non-profits.

He has been conferred an AV-Preeminent Peer Rating by Martindale Hubbell, the highest rating attainable, and has been named a Southern California Super Lawyer for the past 16 consecutive years in the area of Business Litigation.  Barry is also the recipient of CALSAGA’s Security Professional Lifetime Achievement Award. bbradley@bgwlawyers.com  818-243-5200.

About Bradley, Gmelich & Wellerstein LLP

Founded in 2000, Bradley, Gmelich & Wellerstein, LLP is dedicated to providing sound advice and exceptional results for our business and insured clients. Our twenty-five plus skilled, dedicated and diverse attorneys represent individuals and businesses of all sizes in a wide variety of business, employment law and litigation matters.  www.bgwlawyers.com.

 

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Aley Moyer

The Californian 2025 Q1 – MEMBER SPOTLIGHT

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MEMBER SPOTLIGHT – ARMOROUS

Shela Borr, CALSAGA Ambassador Committee Co-Chair

This quarterly edition of the CALSAGA Membership Spotlight is presented by our Ambassador Committee Co-Chair with the goal of introducing herself as the new author of our quarterly spotlight, aimed to focus on new CALSAGA member companies:

My name is Shela Borr, and I serve as the Director of HR at Armorous. I am also proud to be the co-chair of the CALSAGA Ambassador Committee, where I have the opportunity to highlight outstanding companies in the security industry. As I begin writing these spotlights for the Californian, I’d like to take a moment to introduce myself and share a little about the company I represent.

At Armorous, our mission is clear: to be recognized as the best security employer in California, with 1,000 officers by 2027. We believe that providing world-class security starts with taking care of our people, ensuring they have the resources, training, and support to protect what matters most.

Armorous is known for going the extra mile – not just for our clients, but for our employees as well. Our commitment to a world-class culture has earned us prestigious accolades including Best of North Bay Gold Award for Security, and the International Award for Excellence from the IMA – a recognition typically reserved for Fortune 500 companies.

Armorous has been a proud CALSAGA member for the past six years, and is aligned with the organization’s commitment to raising industry standards and fostering professional growth. As the security industry evolves, we look forward to overcoming upcoming challenges with CALSAGA’s guidance and support. Such challenges we are keeping an eye on include insurance limitations, HR and PAGA exposures, and evolving the role of security officers. Being a member of CALSAGA allows us to stay informed with industry trends, obtain educational resources that equip us with the knowledge to mitigate risks and operate with confidence, and navigate the legal aspects of a rapidly changing environment.

Armorous is delighted to be a CALSAGA member, and I am thrilled to highlight other companies in the industry throughout the year!

 

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Aley Moyer

The Californian 2025 Q1 – DON’T BE CAUGHT OFF GUARD: AVOID SURPRISE RESIGNATIONS WITH STAY INTERVIEWS

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DON’T BE CAUGHT OFF GUARD: AVOID SURPRISE RESIGNATIONS WITH STAY INTERVIEWS

Anne Laguzza, The Works Consulting, CALSAGA Network Partner

Picture that one employee who you can always count on. They have a positive attitude and regularly perform at the highest standards. Everyone on the team likes working with them, too.

Now imagine, sitting down at your desk on a seemingly uneventful Tuesday morning only to open your email and find a resignation letter from that employee. You’re immediately confused and feel panicked. All you can think about is how you have to now scramble to keep them. Unfortunately, in my decades of experience in Human Resources, it is too late. It’s unlikely that anything you do at this point will retain that employee.

This situation is very common for leaders, but it is avoidable. The most effective strategy to avoid this shocking moment and increase retention is for leaders to conduct stay interviews.

What is a Stay Interview?

Most commonly, leaders conduct interviews only during the hiring process and when someone leaves the company. Stay interviews are conducted by leaders at scheduled intervals with their direct reports throughout their employment. Stay interviews are proactive, one-on-one conversations between a supervisor and their direct reports where the supervisor essentially checks the temperature of the employee.

The feedback collected during the stay interview provides leaders with the opportunity to know well in advance if there is anything prohibiting that team member from doing their best work and provide solutions before the person considers looking elsewhere for employment (and definitely before they give their notice).

How do leaders conduct Stay Interviews?

Stay interviews are most effective when leaders schedule them at regular intervals throughout the year with their direct reports. Start with scheduling 2 stay interviews a year with your administrative team and supervisory teams individually.

Leaders should also consider scheduling stay interviews during times of internal transitions or changes and when external events may impact employee morale and productivity.

When you sit down one-one-one with your direct report, ask open-ended questions to find out:

  • What aspects of their job do they enjoy the most?
  • What aspects of their job do they enjoy the least?
  • What tools/training do they need/want to perform their job at the highest level?
  • Are there any road-blocks preventing them from meeting your expectations?
  • What do they need from you, as their supervisor, to be successful?

The stay interview is a time to collect feedback and for idea sharing between the leader and their direct report. The overall goal is to provide a space to have an open discussion about ways to keep your direct reports engaged and identify solutions to any problems before they lead to a resignation.

What are the benefits of Stay Interviews?

A stay interview is a leader’s best tool for retention and creating a place where their direct reports want to come to work. Stay interviews provide various benefits to leadership:

  • Build trust and loyalty: According to iHire’s 2024 Talent Retention Report, people who left their jobs voluntarily in 2024 did so named “poor company leadership,” “unhappy with manager/supervisor” and “toxic or negative work environment” as the top 3 reasons for exiting. Leaders can improve their manager-employee relationships through stay interviews as a way to demonstrate that they value their employees’ opinions and are there to help problem-solve, two key factors in building trust and loyalty.
  • Get ahead of challenges: Stay interviews allow leaders to find out how their employees are actually doing. Through open ended questions, leaders can discover problems between processes and/or people, providing an opportunity to be able to help with solutions early on.
  • Retain high performers: Stay interviews provide valuable insight into keeping your high performers engaged. Are they happy with their position? Do they want to be challenged with new opportunities? Checking in with your high performers at scheduled intervals is a simple step that will ensure they feel valued.

Don’t be caught off guard. It is possible for leaders to know truly how each of their employees are doing in the workplace and understand ways to keep them engaged so the entire company performs well. The key is to maintain open communication by regularly conducting stay interviews.

Interested in learning more about how to effectively implement stay interviews? Join us for a free live webinar on Wednesday, Feb. 19 at 10 a.m. PT. Register to attend by clicking here.

Anne Laguzza is the CEO of The Works Consulting, a CALSAGA Network Partner. As a seasoned business executive with human resources management, leadership development, and performance coaching experience, Anne works with clients from a variety of industries to develop better systems, maximize employee productivity, and enable management to focus on business growth. For more information, check out theworksconsulting.com or email anne@theworksconsulting.com. You can also find Anne on Instagram and LinkedIn.

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Aley Moyer

The Californian 2025 Q1 – ENSURING SECURITY GUARD SAFETY IN POST-APOCALYPTIC FIRE ZONES

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ENSURING SECURITY GUARD SAFETY IN POST-APOCALYPTIC FIRE ZONES

Shaun Kelly & John Koskinen, Assured Partners , CALSAGA Preferred Broker

Happy New Year from us! Here is some relevant safety information for you to consider.

With the Palisades and Eaton fires consuming tens of thousands of acres in Los Angeles, the need for security has never been greater. As an insurance broker, it’s crucial to prevent workers’ compensation claims and auto incidents by ensuring the safety of security guards in these hazardous environments.

We’ve observed an increase in workers’ compensation claims related to injuries sustained while patrolling fire zones. The top concern is air quality, followed by contact with hazardous waste. To mitigate these risks, here are some essential safety measures:

  1. Ensure guards have flashlights: Due to power outages, it’s vital that guards are equipped with reliable flashlights.
  2. Monitor air quality and provide PPE: Regularly check air quality and ensure guards are wearing appropriate personal protective equipment (PPE).
  3. Review and equip guards with PPE: Create a list of necessary PPE and review it with your guard staff. Recommended items include N95 masks or respirators, flashlights, first aid kits, whistles, patrol vehicles with at least ¾ tank of gas, car phone chargers, and fire extinguishers.
  4. Ensure guards have guard cards: Make sure staff have their guard cards ready to show law enforcement.
  5. Review post orders and SOPs: Go over your post orders and standard operating procedures (SOPs) related to fires.

In the event of Red Flag Warnings, send out notices to guards on duty and remind them of the safety tools and procedures to follow in case of a fire, mandatory evacuation, or voluntary evacuation. As an owner, your number one job is to keep security staff safe and prevent injuries and accidents.

Our hearts go out to everyone affected by these tragic fires.

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or skelly@tolmanandwiker.com.

 

 

Born and raised in Duluth, Minnesota, John Koskinen began his entrepreneurial journey at the age of 12 by mowing lawns. He has three years of experience in the insurance industry, specializing in claims, sales, and advisory services. John earned his Bachelor’s degree from UCSB in Santa Barbara.

Passionate about the security industry, he enjoys supporting first responders and helping other entrepreneurs thrive. To deepen his involvement, he obtained his BSIS guard card.

John lives with his wife in Ventura, CA. In his free time, he enjoys cooking, surfing, skiing, hiking, and helping others.

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Aley Moyer

The Californian 2025 Q1 – THE IMPORTANCE OF TIMELY ACA COMPLIANCE IN THE SECURITY INDUSTRY

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THE IMPORTANCE OF TIMELY ACA COMPLIANCE IN THE SECURITY INDUSTRY

Jordan Wallach, Belfry Software, CALSAGA Associate Member

As the new year begins, Affordable Care Act (ACA) compliance is a top priority for security firms employing 50 or more full-time equivalent employees. With strict deadlines for filing annual tax and benefits documentation, this is the time to ensure your organization avoids costly penalties and time-consuming audits.

To give you a better idea of the potential costs, failure to offer insurance has a penalty of $2,970 per employee, failure to offer affordable insurance skyrockets to $4,970 per employee, and failure to provide coverage notice can cost a firm owner $100 per employee, per day.

The extreme fluctuation of hours worked by security officers month-to-month can make staying ahead of ACA requirements especially crucial. In this case, the best way to ensure ongoing compliance is proactive management.

Automation tools simplify compliance tasks, providing firms with the confidence to seamlessly navigate complexities. Tools offered by an all-in-one security platform like Belfry help with:

  • Full-Time Status Determination: Belfry tracks employee hours in real time, identifying those eligible for health insurance and ensuring timely offers of coverage.
  • Form Filings: Automate the creation, e-filing, and mailing of 1094/1095-C forms, eliminating manual errors and meeting IRS deadlines.
  • Affordability Calculations: Belfry ensures health plans meet affordability standards, reducing the risk of penalties.
  • IRS ACA Audit Support: Receive audit-ready reports and expert assistance to handle IRS inquiries with ease.

For security guard services where hours vary month-to-month, Belfry’s tools take the guesswork out of ACA compliance. Don’t wait until deadlines loom—streamline your processes now to protect your business.

Jordan Wallach is the Co-Founder and CEO of Belfry, the modern operating system for security guard services companies and a CALSAGA Member. Prior to founding Belfry, Jordan was a consultant at McKinsey & Company and a Product Manager at Microsoft, building software used by millions of people worldwide. He has a bachelor’s degree in Data Science from Stanford University.

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Aley Moyer

The Californian 2025 Q1 – THE HEARTBEAT OF YOUR OPERATIONS: THE IMPORTANCE OF YOUR DISPATCH TEAM

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  THE HEARTBEAT OF YOUR OPERATIONS: THE IMPORTANCE OF YOUR DISPATCH TEAM

Adelynn Camacho, Guardian Secure Solutions LLC, Associate Member

Running a Private Security Company isn’t just about being vigilant—it’s about staying ahead to provide exceptional service.

The workflows of your Operation’s Team are the heartbeat of your organization, and failure to effectively plan the workflows will result in failure of the Operations. If you run an exceptional Internal Dispatch Center, your workflows must be clear, concise, and without any “grey” areas.

But where do you start?

Selecting a stellar team and setting them up for success before you even launch your Dispatch Center or Security Operations Center (SOC) is step 1. Dispatching is a far more demanding position than most expect, and not one to take lightly or hire quickly. This type of role requires a special individual who has a natural ability to multitask, remain calm under pressure, and help others stay calm.

Your dispatch team and operators should be fully trained on standard dispatching protocols before their first day of live action. The development of protocols and procedures is a lengthy process that must be thought out completely, prior to hiring your team. Remember, your dispatchers are there to support your physical security operations, and having written protocols that are easily accessible with clearly outlined workflows transfers accountability from your hands to theirs.

Streamlined processes are an operator’s lifeline!

Using technology to leverage your operations can alleviate user error and maximize your operations capabilities… while elevating your dispatchers! For example, incident response from Security cameras with automated detection capabilities removes the need to have eyes on the cameras 24/7, which is an expectation with inevitable flaws. Another example, using phone capability to screen caller types that will automatically update the dispatchers with the type of call being received allows for a more rapid response. All these technology aspects require set up, training and ongoing management review. As we know, technology is only as smart as we make it.

In any industry, but especially in a Dispatch Center, documentation keeps the company afloat. Your dispatchers will be required to analyze on a consistent basis as well as keep documentation up to the minute! Documentation is a task that at times may seem simple, quick & underwhelming but actually requires constant oversight from the management team. These details are paramount in the physical security operations world, and may come to a point where timely, complete and clear documentation either makes or breaks the company. Dispatchers wear many hats, and the expectations placed on them must be reasonable.

Possibly, the most challenging aspect of your dispatcher’s role is that tasks are ever-changing & never ending. Successful dispatchers have very little down time and should be using any “free” time to prepare for handling upcoming issues. Your management team sets the tone and the tone related to the expectation of productivity must be clear.

Your Security Operations Center is an investment and must be treated as such. Investing in technology, training, and staff is vital. The goal is to streamline operations through alignment of the overall business goals then as your business expands, your operations can also seamlessly expand.

The reality of running an Internal Dispatch Center is that it is time consuming, expensive, requires constant updates and attention. But using proven methodology to minimize issues, and maximize effectiveness can mitigate burn out for both you and your Center.

To learn more about our Security Operations Center and how we can serve you, visit our website guardiansecuresolutions.com.

Adelynn Camacho is a security professional who has played a wide range of roles within security operations. Her passion is driven by her experience in physical security management and her goal is to find unique solutions for her clients so they can elevate their own businesses. 

 

 

 

 

 

 

 

 

 

 

 

 

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Aley Moyer

The Californian 2025 Q1 – PUT DATA TO WORK FOR YOUR BUSINESS

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PUT DATA TO WORK FOR YOUR BUSINESS

David Libesman, TEAM Software by WorkWave, CALSAGA Network Partner

Data has become increasingly important in business, as major companies are devoting more time and energy into tracking, finding and understanding how to make informed decisions. With data, businesses have the power to expose inefficiencies, highlight opportunities, shed light on customer trends and improve daily operations.

Companies that use data properly have the power to turn valuable information into hard stats or raw analytics that provide insights that can increase profitability. Though the security industry has its nuances, business owners can take steps to gain an edge over competitors.

Placing value on data

Without careful processing in the correct context, data can appear unorganized at first glance. Data must be organized and interpreted to have tangible value and then communicated effectively to ensure that insights can be obtained even from professionals unfamiliar with raw data to put the information into context.

Data pertaining to service costs, market conditions and labor requirements can offer insights into how much a customer is willing to charge for security services. Activity data related to schedules, service completions and performance can help denote quality workers who may be ready for additional responsibilities. Operational data that focuses on tracking response times, team productivity and measuring assessments can help optimize operations.

Turning data into insights

Because companies have the power to access deep insights and drive significant business value when their data is accessible and integrated, it must be transformed into information. After data is collected and gathered from various sources, it must be reviewed and assessed for accuracy, curated and normalized before it can be utilized as actionable information.

Different data sets need to be integrated from various sources and ensure the view is unified and connections can be made across teams. Then the data can be analyzed with the goal of discovering useful information – this is where patterns and trends can be identified. Finally, the data must be presented in a format that can be easily digested by various employees of different backgrounds, so the information may be put to actionable use.

In its final stage, data can help professionals make informed decisions on how to move forward. Data aids with exposing inefficiencies while revealing opportunities for confident business decisions. If the right actionable insights are taken, a business may be able to use data to achieve scalable business growth without requiring additional support.

Actionable data insights

Data can be used for auditing purposes, to track the quality of services to ensure operations are fully optimized. Businesses can use data to better evaluate whether the services being offered are upheld to the specifications of SLAs. Alternatively, data can highlight possible expenses that can be cut, allowing for a security company to have additional confidence in taking those steps.

Customer behavior can be better understood, as data can highlight consistent actions, which can aid in retaining and encouraging repeat business. Data can be used jointly with customers to help them better understand the guard services provided and how steps are being taken to reach specific standards.

Analyzing and interpreting data can enhance financial performance and boost profitability. For example, reviewing previous client contracts and using that information to prepare for future business can help businesses recognize trends and focus on profitable services.

TEAM Software and data

TEAM Software understands how critical information is to the security sector. To continue supporting security professionals, we’ll soon launch analytics tools with new capabilities to help support business growth. When these tools are ready for use, more information will be available on the teamsoftware.com website.

David Libesman, SVP & GM, AI& Data Analytics Business Unit at WorkWave

David Libesman is a visionary SaaS executive with an entrepreneurial spirit and track record of developing, monetizing and growing data analytics & AI product strategy and business. David is well-versed in driving strong sales through enterprise channels, as well as building, developing and retaining high-performing teams. He aims to bring best of breed AI and analytic capabilities to boost growth and profits for TEAM Software customers through data-driven strategies.

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Aley Moyer

The Californian 2025 Q1 – THE SECURITY INDUSTRY’S NEED FOR EARNED WAGE ACCESS

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THE SECURITY INDUSTRY’S NEED FOR EARNED WAGE ACCESS

Ryan Faith, TEAM Software by WorkWave, CALSAGA Network Partner

Even as the security industry works to improve its hiring rates, the labor market remains challenging for companies with distributed workforces.

A major problem? High employee turnover.

To mitigate this significant staffing issue, security companies must consider the value of strong retention programs and look at options that provide employees with additional benefits – like earned wage access.

What is Earned Wage Access, and why is it helpful?

Earned wage access provides a way for employees to receive pay for hours they have worked, without waiting for the next scheduled payday. This seemingly minor perk has proven to be an impactful benefit, with one security company attributing it to helping them earn a Great Place to Work Certification.

According to Bankrate’s 2024 Annual Emergency Savings Report, a staggering 59% of Americans are uncomfortable with their level of emergency savings. Another 93% of hourly workers find that managing their finances is stressful, with 71% saying that stress has a negative impact on their mental or physical health, according to PwC’s 2024 Employee Financial Wellness Survey. That same report discovered that one in three full-time employees say that money worries have negatively impacted their productivity at work.

As the traditional paycycle can unfortunately leave employees feeling financially vulnerable, this benefit gives your employees control over their finances and a way to easily reduce stress. Ultimately, this can improve their mental and physical health and helps promote improved productivity, which can increase operational efficiency throughout your business.

What are the Immediate and Long-term Benefits?

Employee Benefits

The immediate benefits to implementing earned wage access include instant financial flexibility, reduced financial stress and improved financial wellness of your employees.

It allows employees to access their earned wages immediately, so that they can use it to cover life’s expenses when the unexpected occurs, and it can help them build healthier financial habits to ultimately achieve their financial goals. In fact, 60% of earned wage access users say that they feel less stress about their finances following activation of the service, according to a 2023 user survey from earned wage access provider, DailyPay.

Employer Benefits

Earned wage access brings just as many benefits to you as the employer as there are for your employees.

First, it helps alleviate the ongoing labor issue – on average, companies see an increase of employee retention as high as 36%, according to a survey of internal data between TEAM Software and partner DailyPay.

Second, it helps provide a competitive advantage. On average, the same internal survey showed that 86% of companies with an EWA solution believe it helps uniquely separate them from their top competitors. In an industry that always struggles with retaining top talent, this helps retain more people — resulting in better operational performance overall over other companies.

Lastly, it is simple to activate with no ongoing management of the feature. Your employees will have access to their earned wages before payday without disrupting your payroll cycle or your revenue. It’s a win-win for all parties involved.

Software Integration for Easy Activation

Earned wage access is currently an add-on feature available through TEAM Software’s ERP solution, WinTeam. For more information on the benefits of earned wage access and TEAM Software’s solutions built specifically for security companies, visit us at teamsoftware.com.

Ryan Faith, Account Management Team Lead at TEAM Software by WorkWave

Ryan is a customer advocate who partners with TEAM Software by WorkWave customers to help identify where software can make their businesses more efficient, competitive and profitable. In his six years with TEAM, Ryan has worked alongside many of the world’s leading security firms and has developed a specialized understanding of the unique challenges faced by the industry.

 

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Aley Moyer

The Californian 2024 Q1 – SURVIVING THE “QUALITY OF EARNINGS REPORT” WHEN SELLING A MANNED GUARDING COMPANY

SURVIVING THE “QUALITY OF EARNINGS REPORT” WHEN SELLING A MANNED GUARDING COMPANY

Bob Perry, Robert H. Perry & Associates, Incorporated

Private Equity’s large commitment to the U.S. manned guarding space has been very good for owners of privately held companies. The prices and terms have been unprecedented. But with these opportunities come challenges in proving the company has the earnings capacity to justify the investment 

Twenty years ago . . .
the U.S. manned guarding market was a homogeneous one. The bill and pay rates within a given geographic market were basically the same. The primary service offering was standing security officers. Therefore, the only difference between a large guarding company and a smaller one was the amount of revenue and number of employees. The acquisition process was simple: given that most of the sellers had the same gross profit percentage, the buyers could value their targets based on a multiple of gross monthly revenue, or percent of annual revenue, and meet their expected return on the investment. The buyers back then were mostly divisions of public companies, and the due diligence was performed by the buyers’ employees. The due diligence was primarily a process of examining billing invoices, payroll registers and customer contracts, which usually took about two days at the seller’s office. There were hardly any negative surprises after closing.

Ten years ago . . .
the mega-size companies such as Securitas and G4S started anticipating the eventual shortage of labor and responded by providing higher margin electronic security to supplement, and sometimes replace, the traditional manned guarding offering. Eventually, the medium-size, and some of the smaller, companies followed with their own higher margin offerings. But not all the companies had the same mix of manned guarding to electronic security, which resulted in companies with the same revenue level having dissimilar gross and net profits.  Today, it’s estimated that approximately 25% of the total U.S. manned guarding market is coming from companies offering a higher margin offering that not only includes electronic security but also off-duty police, drones, robots, executive protection, cyber security, etc.   And the dissimilar gross profit between companies of equal size resulted in a change from valuing the acquisition targets on a multiple of gross monthly, or a percentage of annual, revenue to valuing the companies on a multiple of gross profits (profit at the site level).

Today . . .
there are 10 large private equity groups invested in the U.S. manned guarding space with combined revenues of over $15 billion – representing over half the total market. And these are the companies that are the most favored buyers when it comes to offering the sellers the best prices and terms. However, with better prices and terms come more challenges in getting the transaction closed. These buyers are not accustomed to buying companies on multiples of gross units; rather they are looking at multiples of earnings before interest, taxes, depreciation, and amortization (EBITDA), or more recently, multiples of free cash flow – usually with generous redundant cost add backs.  These aggressive private equity groups are not leaving the final decision to buy the company up to the executives that run their manned guarding subsidiary. These executives are usually not experienced in buying companies and, even if they are, they usually don’t have the in-house talent to perform a proper due diligence on the target seller. The private equity group owners need to know that the information provided by the seller is reasonably correct before they come up with the multi-million- dollar outlay to buy the company. They want and need a third- party verification of the information the seller provided during the negotiations leading up to the offer. This third party, which is independent of the Private Equity Group’s manned guarding subsidiary, will produce what’s called a “quality of earnings” report that points out the negative and/or positive aspects of the seller’s accounting system. The third party will also examine underlying documents all of which will help the private equity group buyer understand the return it can expect to make off the acquisition.

The third party will usually be a large accounting firm with a special division experienced in producing “quality of earnings” reports.   The third party will be directed by the buyer in what to examine, given the size and importance of the acquisition, so as not to waste time on unimportant aspects.   However, without proper planning from the seller, the review can be very time consuming and disruptive to the regular duties of the personnel assigned to provide the information requested. But more important, the lack of planning can cause the process to slow down, thus losing the all- important momentum necessary for a successful consummation of the sale.

A typical request list will initially include 50 – 75 items with additional requests as the review progresses. There may be a short list for the smaller company with an expanded list for the larger ones.  But in all cases, as mentioned above, proper planning and being engaged in the process is crucial. Engaging a transaction manager (broker), experienced in managing the sale of manned guarding companies and familiar with the various buy side request lists, will add a lot of value to this process and prevent wasted time and money brought about by false starts.

Tips for Surviving the “Quality of Earning” Report

  • Engage an accounting firm to produce a “sell-side quality of earnings” report. This can be produced by a large accounting firm with a “quality of earnings” department or the seller’s outside accounting firm. It should be started well in advance of the sale process so it’s ready for the buyer’s third- party due diligence firm when the time comes for the seller to let the buyer see more detailed information on the company.  It will not replace the need for the buyer to engage its own firm, but greatly expedites the process if the sell-side report is otherwise credible and contains the appropriate information. This sell-side report can be expensive, which is the reason many sellers are reluctant to provide it but, if it saves the deal from losing the all- important momentum, it can be well worth the investment.
  • If a sale side report is not feasible, start accumulating the information internally, well in advance of the time the buyer will produce its own list. A lot of the information needed will appear on the request list of almost all of the third- party firms. Many of the items are not time sensitive, so can be completed early or at least started and updated as the due diligence progresses. Ideally, the information should be stored in the confidential computer data room of the transaction manager that will ultimately be representing the seller in the transaction. Not only does starting on the list early expedite the transaction, but it allows the personnel assigned to accumulate the information to work at a more organized pace and thus does not disrupt the normal work assignments.   It also helps keep the negotiations confidential and eliminates the possibility of the word getting out prematurely that the company is being sold.
  • Make sure the personnel accumulating the information are aware of the timeline and check with them on a frequent basis. If the information is not accumulated in advance of the actual due diligence, as mentioned above, then the slow-down arises when the personnel getting the information is not aware of the importance of expediting their work. They will probably have to be informed about the pending sale with a return promise to keep the work confidential. The personnel are often given bonuses for meeting certain deadlines.

Robert (Bob) Perry is the founder and CEO of Robert H. Perry & Associates, Incorporated.  Prior to forming RHPA, Bob was a partner in a CPA firm where he advised on corporate tax and general accounting matters.  Although RHPA’s primarily focus is on managing the sale of privately held security companies with revenues ranging from $2 million to over $250 million, it has also provided advisory services for large private equity groups in making bids on security companies with revenues exceeding $2 billion.   While most of the engagements have been for security companies headquartered in North America, a few have been for companies headquartered in Europe, South America, The Middle East, Africa, and The Caribbean.

 

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