A Different Way to Give Your Guards a Raise – Without Raising Payroll

Bruce Monteith, ProVision Health, CALSAGA Associate Member

For most California security companies, labor is the business.

Your officers are your largest expense, your most important asset, and increasingly, one of your biggest operating challenges. Wages continue to rise. Recruiting is difficult. Turnover is expensive. At the same time, many security companies operate on margins that make simply increasing wages by another $1 or $2 per hour difficult to absorb.

So what if there were another way?

A properly structured Section 125 wellness program can potentially increase an employee’s take-home pay, provide meaningful healthcare benefits to employees and their families, and reduce an employer’s payroll-tax expense – without requiring the security company to increase its payroll budget.

That sounds almost too good to be true. Which is exactly why it deserves a closer look.

What Is a Section 125 Wellness Program?

Section 125 of the Internal Revenue Code allows employers to provide certain qualified benefits on a pre-tax basis.

When a program is designed and administered correctly, participating employees can reduce the amount of compensation subject to certain payroll taxes while receiving qualified benefits.

The employee benefit is fairly easy to understand: more money can remain in the employee’s paycheck.

In a typical program we see, the increase in take-home pay can average approximately $200 per month for a participating employee.

For a security officer working full time, the economic effect can be similar to receiving roughly a $1.75-per-hour increase in gross wages, depending on the employee’s individual tax situation.

Think about that for a moment.

A security company may be able to give a substantial portion of its guard force the financial equivalent of a meaningful raise – without actually increasing the company’s hourly wage scale.

In an industry fighting every day to recruit and retain good officers, that deserves attention.

The Employer Can Benefit Too

The economics do not stop with the employee.

Because properly structured pre-tax benefits can reduce taxable payroll, the employer may also reduce certain payroll-tax expenses.

Using a simple example, assume a security company has 100 eligible guards and approximately 60% participate.

At roughly $900 in annual employer savings per participating employee, that could produce approximately:

$54,000 per year in employer payroll-tax savings.

At the same time, those 60 participating guards could collectively receive approximately:

$144,000 in additional annual take-home pay.

That is an unusual combination: improving employee compensation while also improving the employer’s bottom line.

And the benefits do not stop there.

Meaningful Benefits for Employees and Their Families

A well-designed program should provide real benefits people can actually use – not simply a tax mechanism with a benefits label attached to it.

In the PH125 structure, the participating employee receives an insured hospital indemnity benefit. In addition, participating employees and their families receive access to a broader package of healthcare services that can include:

  • Virtual primary care
  • Virtual urgent care
  • Behavioral health and counseling
  • Approximately 1,000 covered prescriptions
  • Approximately 80 covered laboratory tests
  • Care navigation and other healthcare support That family component matters.

For many hourly workers, the real value of a benefit is not simply whether they personally can use it. It is whether their spouse or children can access care when they need it without another large out-of-pocket expense.

At a 60% participation level, a company with 100 eligible guards could potentially provide these supplemental healthcare resources to approximately 60 participating employees and their families.

That makes this more than a paycheck strategy.

It becomes part of the company’s overall compensation, benefits and retention strategy.

But Not All Section 125 Programs Are Created Equal

This may be the most important point in this article.

If someone describes a Section 125 program as “free money,” be skeptical. Your skepticism is doing its job.

These programs involve tax law, benefit-plan rules, payroll administration and documentation. They need to be structured correctly.

Before implementing any program, a security company should ask some basic questions:

Has the structure been independently reviewed by qualified tax and legal professionals?

Are the underlying benefits legitimate qualified benefits?

Are the plan documents, payroll procedures and employee communications properly structured?

Who is responsible for administration and ongoing compliance?

What financial protection exists if the tax treatment is later challenged?

That last question is particularly important.

Some providers simply offer an opinion that their structure complies with the Internal Revenue Code. More robust programs go further.

For example, the PH125 program we work with includes independent legal and tax review and also incorporates tax-indemnity insurance designed to cover specified tax liabilities, penalties, interest and defense costs, subject to the terms, conditions and limits of the policy.

That does not eliminate the need for proper compliance. It adds another layer of financial protection behind it.

For an employer considering any Section 125 strategy, that distinction matters.

Why Security Companies Should Pay Attention

Private security may be one of the industries best suited for this type of strategy.

Security companies employ large numbers of hourly workers. Margins are tight. Wage competition is intense. Benefits are difficult to provide economically. And employee turnover remains one of the industry’s most persistent problems.

That creates a difficult equation:

Employees need more. Employers cannot simply keep spending more.

A well-designed Section 125 wellness strategy can change that equation.

Imagine being able to tell your workforce that participating employees can increase their take-home pay, receive an insured hospital indemnity benefit, and give their families access to meaningful healthcare services – while the company itself may reduce payroll-tax expense.

That is not the same as simply adding another benefit. It is a different way of looking at compensation.

It will not solve every workforce problem. It will not replace good management, competitive wages or a strong culture.

But if a security company can increase employee take-home pay, provide useful benefits to employees and their families, and improve its own bottom line at the same time, it is at least worth understanding.

For many companies, the biggest mistake may not be deciding against one.

It may be never running the numbers in the first place.

To learn more or request a confidential financial impact analysis for your company, contact Bruce Monteith at [email protected] or 609-977-7925.

Time Theft Is Quietly Draining Your Margins – Here’s How Biometrics Can Deter It

Stephanie Petersen, TEAM Software by WorkWave, CALSAGA Network Partner

Buddy punching. Rounded-up break times. A guard clocking in ten minutes before actually arriving on site. Individually, these moments seem minor. Across a workforce of hundreds or thousands of distributed employees, they add up to real money lost – money that security and cleaning companies operating on razor-thin margins simply can’t afford to lose.

Time theft isn’t a new problem, but for manned guarding firms managing distributed teams across dozens of client sites, it’s becoming harder to ignore. Rising labor costs, tight margins, and increasing client demands for proof of service mean every unverified hour on a timesheet is a liability. The good news is that biometrics now makes it possible to verify not just when someone clocked in, but who actually did.

What Is Time Theft, and Why Does It Hit Security Firms Especially Hard?

Time theft happens whenever an employee is paid for time they didn’t actually work. In the security industry, this often takes the form of buddy punching (one employee clocking in or out on behalf of another) or early/late punches that pad hours worked.

For a distributed workforce spread across multiple client sites, these discrepancies are notoriously difficult to catch with traditional time and attendance methods. Supervisors can’t be everywhere at once, and manual oversight only goes so far when margins are already stretched thin, often sitting at just 15-20% gross profit. Every unverified hour chips away at profitability and makes it harder to prove service delivery to clients who expect accountability.

How Biometric Verification Helps Eliminate Buddy Punching

Facial verification technology addresses time theft at its source. Instead of relying on a PIN, badge, or signature that can be shared or falsified, biometric time clocks confirm that the person clocking in is actually who they say they are.

This isn’t just about catching bad actors. Biometric verification builds a more accurate, defensible record of hours worked. For security companies, that means:

  • Verified proof of presence for every shift, strengthening compliance and client trust.
  • Reduced non-billable overtime caused by inaccurate or inflated time records.
  • Fewer payroll disputes, since the data is accurate from the first punch.

TEAM Software is bringing this capability directly into WinTeam, consolidating biometrics alongside time punching, scheduling, and guard touring into one mobile experience. Rather than juggling multiple apps, supervisors and workers get a single, streamlined tool built specifically for the realities of frontline security work.

Why This Matters Beyond Payroll Accuracy

In addition to protecting against theft, biometric verification feeds every other part of the business. Clean, verified time and attendance data improves job costing, strengthens compliance tracking, and gives operations leaders the visibility they need to make proactive decisions about staffing and profitability. When your time data is trustworthy, everything downstream, from payroll to client reporting, becomes faster and more reliable.

Companies that have modernized their time and attendance processes with automation have seen payroll processing time cut by as much as 90%. For an industry where administrative hours directly compete with time spent on client service, that’s a meaningful shift.

See Biometrics in Action

Reading about biometric verification is one thing. Seeing it work is another. TEAM Software recently hosted a webinar, “The Future of the Frontline: Deterring Time Theft with Biometrics and Kiosk” that walked through exactly how this technology is helping security and cleaning companies close the gaps that traditional time tracking leaves open.

Time theft, buddy punching, and inaccurate time data often go unnoticed until they show up in your margins. If you’re not sure what they’re costing your organization, this is worth 30 minutes of your time.

Watch the webinar now and see how biometrics can help protect your margins, strengthen compliance, and give your frontline the modern tools they deserve.

Stephanie is a product manager at TEAM Software by WorkWave with over a decade of experience shipping complex software. She leads WinTeam Mobile, helping security and janitorial companies turn chaotic field workflows into reliable systems, including the biometric timekeeping tools built to help them protect their margins.

How Data-Driven Decision Making Improves Security Operations

Carissa Gappa, TEAM Software by WorkWave, CALSAGA Network Partner

The security industry is in the middle of a meaningful shift. Data that used to sit in spreadsheets or get buried in end-of-day reports is now driving real-time decisions in the field — and the operators using it well are seeing the difference in their service quality, their people, and their client relationships.

At TEAM Software by WorkWave, we see this play out most clearly at the supervisor level. Supervisors bridge job site activity and back-office outcomes, juggling compliance, scheduling, payroll, and client expectations across multiple sites. When data works for them, it reduces decision fatigue and frees them to focus on the work that moves the needle. When it doesn’t, they’re stuck reacting to problems good systems could have prevented.

Here’s where data-driven decision making is making the biggest impact.

Proof of Work, Without the Back-and-Forth

One of the most persistent challenges in security operations is verification. Did the right guard show up? Was the post covered on time? Without reliable data, these questions lead to disputes, manual follow-up, and eroded trust.

Industry-specific analytics change that equation. Proof-of-presence tracking, schedule adherence monitoring, and quality checkpoints give supervisors fast, reliable visibility into what happened and when. Verification becomes a quick check rather than an investigation, and clients receive the transparent, documented accountability that builds long-term confidence; an important differentiator in a competitive market.

Staying Ahead of the Unexpected

Something unexpected happens every day in security operations: last-minute call-offs, unplanned shift extensions, special events requiring rapid redeployment. Managing these manually is exhausting and can lead to errors. For example, a supervisor fielding a 5am call-off while covering three other sites has little margin for a slow response.

Data-driven workflows, and increasingly, AI-assisted tools that automate approvals and open-post filling based on availability, qualifications, and proximity, take that burden off supervisors’ plates. The system handles the logistics; the supervisor handles the judgment calls, freeing them to coach guards, communicate with clients, and build relationships that drive retention.

Timekeeping That Actually Ties Out

Timekeeping reconciliation is a constant source of friction with missed punches, overtime variances, rejected entries, and scheduling discrepancies that slow everything down. The consequences are real: payroll errors damage trust with guards, and invoicing delays strain client relationships and cash flow.

Analytics that surface discrepancies in real time change the dynamic. Instead of discovering a problem at the end of the pay period, supervisors can address missed punches and variances as they happen. The result is cleaner payroll, faster invoicing, and a back office that isn’t playing catch-up with the field.

What This Means for Client Relationships

A security partner that can prove coverage, respond to unexpected changes without disruption, and invoice accurately and on time is a fundamentally different kind of vendor than one that can’t. The right data changes the story you can tell clients about the value you deliver.

In an industry where contracts are won and lost on trust, the ability to back up performance with clear documentation is a genuine competitive advantage. Clients who can see proof of work and trust that billing reflects reality are far more likely to renew and expand the relationship.

The Bigger Picture

Supervisors juggle some of the hardest jobs in security. When data proves work was done, handles the unexpected, and keeps timekeeping clean, they spend less time firefighting and more time leading — making the entire operation more resilient, professional, and valuable to the clients it serves.

The companies that embrace this shift earliest will have a meaningful edge in a market where accountability and transparency are no longer optional — they’re expected.

See how TEAM Software helps security companies manage their workforce with better data ?

Carissa Gappa, Senior Product Manager at TEAM Software by WorkWave. Carissa has spent the last two decades championing customer needs, analyzing cross-industry data trends, and bringing together people, process and technology to solve real industry problems.

 

SB 1203: Understanding the New Training Requirements for 2029

Michael J. Bruskin, Bradley + Wellerstein, CALSAGA Legal Advisor

The talk of both Private Patrol Operators (“PPOs”) and Proprietary Security Employers (“PSEs”)everywhere this year has been Senate Bill 1203 (“SB 1203”) and how it will impact security operations across the state.  This bill has gone through multiple draft versions and revisions over the course of the year, and the final bill looks quite a bit different (and less problematic) than where it started.  There are still a lot of changes to be aware of, but we have two years to get ready for them.

Below is a brief overview of the most impactful provisions of SB 1203 for PPOs and PSEs:

New Training Requirements

Beginning January 1, 2029, new guards obtaining their license will require a total of 50 hours of training, an increase from the current 40 hours.  The initial 8 hours of Powers to Arrest and Appropriate Use of Force remain unchanged and must be completed before a license (“Guard Card”) is issued.  18 of the remaining 42 hours must now be completed within 30 days of receiving a Guard Card, and the remaining 24 hours must be completed within 6 months of receiving a guard card.

Guards must maintain training records and produce them upon hire.  Any guard hired who cannot produce the necessary training records must be sent to complete training within 6 months of hire.

Guards with current licenses are NOT required to complete the additional training so long as they maintain copies of the necessary training records to demonstrate they were trained under the old rule prior to January 1, 2029.

All guards will be subject to an increased training requirement for annual renewals occurring after January 1, 2029.  Guards will be required to take 12 total hours of renewal training each year, up from the current requirement of 8 hours.

Both the annual renewal and first-time guard license training will require de-escalation training as well.  This training must be taken in a classroom setting and 100% in-person, with live demonstrations.  8 hours are required for new guards, and 4 hours as part of the 12 total hours of renewal training.

Importantly, for the first time, PSEs and their Proprietary Security Officers will be held to the same high training standards as private security officers. Additionally, the fines will also be raised across the board, both for PPOs as well as PSEs, for violations, up to $10,000 per violation!

Off-Shift & Live Classroom Instruction

Beginning January 1, 2029, no training may be completed while a guard is on post.  All training courses by guard employees must still be treated as time worked, but it cannot be done while they are also on post, even for otherwise remote training sessions.  These must be shifts dedicated entirely to training time and compensated accordingly.

Additionally, there are increased requirements for classroom presence.  The new 8 hours of de-escalation training must be conducted entirely in a live classroom environment with an instructor physically present and providing live demonstrations.  All other training must now be conducted in “a traditional classroom setting”.  Fortunately, this definition is broader than expected, and it means that “at least” 50% of it must be taught in a true live, in-class setting.  The other half can be done remotely so long as the class is live and an instructor is available the entire time to respond to questions.

Protect Your Business!

These new training requirements will represent a real cost to PPO employers, as well as for in-house PSE budgets.  For PPOs, be sure to review your existing client contracts and start planning for billing rates to account for this, either through direct compensation for training by your clients, or increased hourly rates to make up the expense of training.  Start building in escalator clauses into your security services agreements to protect yourselves!  While these training requirements will represent a big change, we have two years to start preparing for it.

We anticipate some court challenges between now and January 2029, and there will be additional detailed updates and educational programs available to you through CALSAGA over the next two years.  But make no mistake about it: SB 1203 increased training will be taking effect.   Don’t get caught unprepared — start making the necessary adjustments to your business practices and long-term contracts now.

Michael J. Bruskin is Special Counsel at Bradley + Wellerstein where he provides employment advice and counsel to our clients, with substantial experience advising employers in the private security industry. Michael counsels clients on day-to-day employment matters, compliance, policies, and strategies to reduce risk while supporting business needs. He also conducts employment practices audits and helps employers navigate California’s rapidly changing employment laws with practical, business-focused solutions.

 

 

About Bradley + Wellerstein LLP

Based in Burbank, California, Bradley + Wellerstein LLP is dedicated to providing strategic representation and legal counsel in business and employment law.  In addition to serving as trusted legal advisors to CALSAGA, the firm represents local, regional, statewide and national companies across a wide range of industries doing business in the State of California, with a unique expertise in the private security sector.

The Hidden Liability Trap: Why Adding Your Client as an Additional Insured Can Backfire

Shaun Kelly, The Liberty Company, CALSAGA Preferred Broker

If you operate a contract security company in California, chances are you have received a client request that reads something like this: “Please add us as an Additional Insured on your general liability policy.” On the surface, this sounds like a routine administrative task a simple endorsement to keep your client happy and the contract moving forward. In reality, agreeing to this request without fully understanding its implications can expose your company to significant financial and legal risk.

Let’s break down exactly why this is a problem and what you should do instead.

What Does “Additional Insured” Actually Mean?

When you add a party as an Additional Insured on your commercial general liability (GL) policy, you are extending the coverage of your own insurance to protect them. That means your policy, and your policy limits, are now on the line for claims that arise not just from your own actions, but potentially from your client’s actions as well, depending on how the endorsement is written.

This is the crux of the issue. Security contractors are hired to manage risk on someone else’s property. When something goes wrong, an incident involving a visitor, a premises liability claim, or an allegation of negligent security, the question of who is responsible can become deeply complicated. If your client is an Additional Insured on your policy, your insurer may be compelled to defend and indemnify them, even when the incident had nothing to do with your guards’ conduct.

The Core Risks for Security Contractors

  • Erosion of Your Policy Limits: Every dollar paid to defend or settle a claim on behalf of your client comes out of your aggregate policy limits. A single large premises liability suit brought against your client could exhaust the limits your own business depends on for protection.
  • Coverage for Your Client’s Own Negligence: Broad Additional Insured endorsements can require your policy to respond to claims caused by your client’s independent negligence, conduct entirely outside your control. You could find your insurance paying for a client’s slip-and-fall claim that has nothing to do with your security services.
  • Premium Increases and Non-Renewal Risk: When claims are paid on behalf of Additional Insureds, those losses are attributed to your policy’s loss history. This can trigger premium increases at renewal or worse, prompt your insurer to non-renew your coverage altogether.
  • Contractual Liability Overreach: Many service agreements include indemnification language that, when combined with an Additional Insured endorsement, creates a scenario where you are contractually obligated to hold your client harmless for a much broader scope of liability than your original work warrants.

Not All Additional Insured Endorsements Are Created Equal

The specific language of the endorsement matters enormously. There is a significant difference between an endorsement that extends coverage only for liability arising out of your operations (a narrower, more defensible form) versus one that extends coverage for the Additional Insured’s own acts and omissions. Many clients and even some brokers unfamiliar with the security industry will request or issue the broader version without recognizing the consequences.

Security contractors should work with a broker who understands the nuances of these endorsements in the context of your industry and can help you negotiate endorsement language that is reasonable, limited in scope, and protective of your interests.

Best Practices for Managing Additional Insured Requests

Before agreeing to any Additional Insured request, consider the following steps:

  • Review the contract language carefully. Understand exactly what indemnification obligations you are agreeing to alongside the Additional Insured status.
  • Request a narrowly worded endorsement. Insist on language that limits coverage to liability “arising out of your ongoing operations” on behalf of the Additional Insured, not their independent acts.
  • Consult your broker before signing. Do not simply hand over a certificate of insurance with an Additional Insured endorsement without first understanding the downstream exposure.
  • Ensure your contract includes a mutual indemnification clause. Your client should bear responsibility for their own negligent acts, and your agreement should reflect that clearly.

The Bottom Line

Adding a client as an Additional Insured is sometimes a contractual necessity but it should never be done reflexively or without careful analysis. For security contractors operating in a high-liability environment, the stakes are too high to treat insurance endorsements as a formality. Every agreement you sign has the potential to reshape your coverage, your costs, and your risk exposure.

Shaun Kelly serves as Vice President of the Security Practice at The Liberty Company Insurance Brokers, one of the nation’s leading independent insurance brokerage firms. With deep expertise in the contract security industry, Shaun has built a reputation as a trusted advisor to security company owners and executives across California, helping them navigate complex coverage decisions, manage contractual risk, and build insurance programs that actually protect their business when it matters most. As the preferred insurance and risk management partner for CALSAGA, The Liberty Company is proud to support the California security industry with specialized knowledge and dedicated service.

Have questions about your Additional Insured endorsements, contract language, or your current coverage program? Reach out to Shaun directly!

Shaun Kelly, VP Security Practice

The Liberty Company Insurance Brokers, LLC

[email protected]

Getting More From Your SOC: What It Should Do for Your Officers and Your Managers

Ashlee Cervantes Thomas, Guardian Alliance, CALSAGA Associate Member

Many security companies that have a Security Operations Center (SOC) use only part of its potential.

Some built their own dispatch center. Some send after-hours calls to an outside operations center. Others hand a supervisor the on-call phone and call that a SOC. In all three cases, the pattern is often the same. The SOC answers, takes a message, and passes the call to a manager. The manager still makes the decision, still makes the follow-up call, and still documents what happened.

That setup costs real money but delivers only a fraction of the value a SOC should provide.

For security company owners, the real value of a SOC isn’t measured by the number of calls it answers. It’s measured by the decisions it supports, the problems it resolves, and the operational burden it removes from the people responsible for running the business.

A well-utilized SOC should function as an extension of your operations team, supporting officers in the field, providing management with actionable information, and identifying potential problems before they escalate.

Getting there depends less on who staffs the SOC and more on how your company uses it.

What a SOC should handle for your officers

Your officers need one thing from operations before anything else: someone who answers.

An officer who calls three times at 3 a.m. and reaches voicemail learns to stop calling. From then on, they make decisions alone, and you find out what they decided after the fact.

A SOC should be the first call for every officer, on every post, for:

  • Call-offs and open shifts. The SOC logs the call-off, works your coverage list in the order you establish, and escalates to a supervisor when additional decisions or resources are needed.
  • Post information. Site contacts, access instructions, and post orders should be available through your operational platform so no one wakes a manager for a gate code.
  • Relief and breaks. Coordinating who is relieving an officer, when relief is expected, and what happens when coverage is delayed.
  • Welfare checks. Conducting scheduled check-ins for officers working alone, with documented procedures for missed contacts.
  • Live incidents. Allowing the officer to remain focused on the situation while the SOC coordinates emergency notifications, contacts designated personnel, and documents critical timestamps according to established protocols.
  • Everyday questions. Schedules, time-off requests, and equipment issues can be documented and routed to the appropriate person without requiring an immediate management response.

None of this is particularly complicated. Yet these are often the same reasons officers call their manager’s cell phone today.

There is also an employee experience component worth considering.

In Trackforce’s 2025 benchmark survey of more than 300 security professionals, over 40% of security providers identified employee turnover as their biggest challenge, alongside pressure from rising wages and non-billable overtime.

A SOC cannot solve compensation challenges or eliminate turnover. But providing officers with consistent, dependable operational support is something security companies can control.

Officers who know someone will answer, provide direction, and follow through are better positioned to do their jobs confidently.

What a SOC should handle for your management team

For managers, the first benefit is obvious: fewer calls at night.

The bigger benefit is what the SOC records while handling those calls.

When interactions are consistently documented in a centralized system, that information begins to reveal patterns no individual manager can easily identify from a cell phone.

Over time, SOC records can help answer important operational questions:

  • Which sites generate the most call-offs, and on which days?
  • Which officers are consistently late to post?
  • Which posts repeatedly miss scheduled welfare check-ins?
  • Which clients contact operations most frequently, and why?
  • How long do open shifts remain unfilled?

That is the information managers need to address a problematic post before the client raises concerns, improve next month’s schedule, and walk into a contract renewal with facts rather than impressions.

The SOC should also replace the fragmented overnight text thread.

Instead of waking up to twenty separate messages, managers should receive one organized summary outlining what happened, who was notified, what remains unresolved, and which decisions require attention.

Managers begin their day knowing where operations stand rather than spending the first hour reconstructing what happened overnight.

Moving beyond reactive dispatch

Answering calls and documenting incidents are essential functions, but a mature SOC should do more than respond when something goes wrong.

There is an important distinction between reactive support and proactive operational oversight.

Reactive support begins when someone makes a call. An officer reports an issue, a client requests assistance, or an incident requires escalation.

Proactive oversight looks for operational exceptions before someone needs to report them.

Depending on the services and systems available, that might include identifying missed check-ins, reviewing incomplete patrol activity, monitoring camera alerts, verifying shift coverage, or flagging recurring problems at particular sites.

Consider an officer who misses a scheduled welfare check. A reactive operation may not discover the issue until someone calls. A proactive SOC identifies the missed contact, initiates the established follow-up procedure, and escalates when necessary.

The objective isn’t to replace supervisors or remove their judgment. It’s to give them another layer of visibility and support.

A SOC shouldn’t simply document what went wrong. It should help operators recognize when something may be going wrong.

That shift from answering calls to actively supporting operations is where a SOC can become a meaningful operational asset.

Teach officers to use it, and keep managers from going around it

A SOC only works if people use it.

That requires two consistent habits: one in the field and one in management.

In the field, officers need to know the SOC number and understand when they should call. Include the number in post orders, onboarding materials, and operational communications. Establish clear expectations that the SOC is the first point of contact for call-offs, post questions, relief issues, and incidents.

Consider having the SOC contact each new officer during their first shift. The goal is to make the first interaction a familiar introduction rather than an emergency.

In the office, managers have to resist the temptation to bypass the system.

This is harder than it sounds.

A manager who responds to a call-off text at 9 p.m. is trying to be helpful. But if that information never reaches the SOC, the open shift may not be properly documented, other operational personnel may remain unaware, and the following month’s reporting becomes less reliable.

The rule should be straightforward: officers contact the SOC, and the SOC brings decisions to managers when appropriate.

Managers still make decisions requiring their authority and experience. They simply stop handling every routine operational call themselves.

Consistency is what makes the system work.

Three California obligations a SOC can help you manage

For California security providers, a well-organized SOC can also strengthen the documentation and coordination processes that support regulatory compliance.

A SOC does not replace management’s compliance responsibilities, employment counsel, or required reporting procedures. It can, however, help ensure important information is captured and routed promptly.

Rest breaks. California law generally requires employers to relieve employees of all work-related duties during required rest periods, including the obligation to remain on call. The California Supreme Court reinforced this principle in Augustus v. ABM Security Services, a case involving security officers.

For single-officer posts, arranging appropriate relief can be an operational challenge. A SOC can help coordinate relief assignments, track scheduled breaks, and document situations where relief is delayed or unavailable. Employers must still establish lawful break procedures and ensure that qualifying rest periods are actually provided.

Workplace violence documentation. Since July 1, 2024, California’s SB 553 has required most covered employers to maintain a written Workplace Violence Prevention Plan and document workplace violence incidents in a violent incident log. Required information includes details such as the date, time, location, and nature of the incident.

When officers report incidents through a centralized SOC, operators can capture initial details, preserve timestamps, and promptly notify the individuals responsible for completing required records. The SOC’s initial report can support the process, but employers must ensure their formal logs and investigations satisfy applicable requirements.

BSIS incident reporting. California’s Bureau of Security and Investigative Services requires Private Patrol Operators and security officers to report certain on-duty incidents involving physical altercations, firearm discharges or use, or deadly weapons within seven business days.

A SOC can help by flagging potentially reportable incidents and directing them immediately to the designated person responsible for evaluating and submitting the required report.

The reporting deadline begins with the incident, not when someone in the office discovers it.

In each of these examples, the value of a SOC comes from consistency: information is documented, the appropriate personnel are notified, and operational issues are less likely to disappear into individual phone calls or text messages.

Where to start

You don’t necessarily need new software, more personnel, or an entirely different operations center to get more value from your SOC.

Start by evaluating how your current system is being used.

Are officers consistently contacting the SOC first? Are routine operational issues being resolved without unnecessary management involvement? Are managers receiving useful information, or simply a record of calls answered? Is your SOC identifying potential issues proactively, or only responding after someone reports a problem?

The answers will tell you whether your SOC is functioning as a communications center or as a true extension of your operations team.

At Guardian Alliance SOC, we approach these questions from the perspective of security company operators. Built by owners who understand the challenges of managing officers, clients, and around-the-clock operations, our focus is on helping security providers establish dependable communication, consistent oversight, and stronger operational accountability.

Whether you operate an internal SOC or partner with an outside provider, the principle remains the same:

Your SOC should do more than answer the phone. It should help you run a better security operation.

Learn more about Guardian Alliance SOC at guardian-soc.com.

Ashlee Cervantes Thomas, MBA, is CEO of Guardian Protection Force, Inc., a California-based private security company established in 2010, and Co-Founder and CEO of Guardian Alliance SOC. With more than 15 years of experience in private security operations, she brings an operator’s perspective to modernizing security communications, incident response, and operational oversight. She holds an MBA from the University of California, Davis, and proudly serves as Vice President of CALSAGA.

 

 

Sources

  • Trackforce, 2025 Physical Security Operations Benchmark Report, Business Wire, October 2025.
  • California Supreme Court, Augustus v. ABM Security Services, Inc., December 22, 2016.
  • California Division of Occupational Safety and Health (Cal/OSHA), Workplace Violence Prevention for General Industry.
  • California Bureau of Security and Investigative Services (BSIS), Submitting Incident Reports and Notice of Violent Acts.

You Won the Security Contract. Did Your Company’s Profit Grow as Expected?

Why successful account start-ups can create costs that extend far beyond the new contract—and what those costs may reveal about your operation.

Eric Galuppo, VAMO Digital, CALSAGA Associate Member

The contract was awarded. The start date was firm. Every post was covered on day one.

The client received what was promised. Billing began on schedule. Monthly revenue increased as projected.

By most operational measures, the start-up was successful.

But when the monthly P&L arrived, did the additional revenue produce the profit you expected?

For experienced security company executives, that question deserves a closer look.

The Costs That Follow a New Contract

Consider a familiar situation.

A new account requires eight officers across three shifts. Six are hired and cleared before the start date. The remaining coverage must come from somewhere.

An officer from an established account works double shifts. A Field Supervisor fills an overnight post. One of the company’s most dependable officers is reassigned because the new client needs an experienced person at the front desk.

Every post is covered. The client is satisfied.

The start-up succeeds.

None of these decisions is necessarily wrong. They reflect the commitment and flexibility required to operate a successful contract security business.

But the financial consequences may extend well beyond the new account.

The experienced officer came from another assignment. If replacing that officer requires unbilled overtime, the additional cost may appear under an entirely different client account.

The Field Supervisor covering a post is temporarily unavailable for normal field responsibilities. Recruiting resources shift toward the new contract while existing vacancies still require attention. Operations managers spend additional time coordinating coverage, resolving problems and supporting the client.

Each decision may be operationally necessary.

Each may also consume resources or create expenses elsewhere in the company.

And each financial consequence may appear in a different part of the P&L.

What Your P&L May Not Be Telling You

Your financial statements may accurately report overtime, payroll, recruiting, training and supervisory expenses.

But do they reveal which operating decisions and conditions caused those costs—and how those causes are connected?

That distinction matters.

The P&L can show where an expense was recorded without necessarily revealing the operating event that made the expense necessary.

Consider unbilled overtime.

It might result from an unexpected absence, an insufficient relief pool, an extended vacancy or the reassignment of experienced officers to support new business.

The financial symptom may look the same.

The underlying operating problem—and the appropriate solution—may be entirely different.

Reducing overtime without understanding its causes may temporarily improve one financial measure while leaving the conditions that created the expense unchanged.

The same principle applies to supervisory labor, recruiting activity and management involvement.

When experienced managers repeatedly step in to compensate for staffing shortages, scheduling breakdowns or communication gaps, their involvement may keep the operation running successfully.

But necessary management intervention is not without cost.

And when temporary intervention becomes routine, it can conceal an operating condition that continues to consume profit.

When Temporary Solutions Become Permanent Costs

The most revealing part of a new account’s financial performance may come after the start-up is considered complete.

Did the double shifts stop?

Was the reassigned officer replaced without creating continuing overtime?

Did the Field Supervisor return to normal responsibilities?

Did recruiting catch up with staffing requirements?

Did the additional management involvement disappear?

Or did some of those temporary solutions quietly become part of the company’s normal operating structure?

Not every start-up expense represents a problem. Some are legitimate investments in bringing profitable new business online.

The important distinction is knowing which costs were temporary, which continued and which recurring expenses might have been reduced or prevented through a different operating approach.

Without that understanding, a company can continue adding revenue while absorbing operating inefficiencies that prevent the corresponding profit from reaching the bottom line.

The Opportunity Is Bigger Than Reducing Expenses

Improving profitability is not simply a matter of cutting costs.

It is a matter of understanding why costs occur, how operating conditions create them and what must change to prevent unnecessary recurrence.

For example, recurring overtime may point to inadequate relief capacity. Persistent vacancies may reflect how late recruiting receives staffing requirements. Repeated supervisory intervention may reveal weaknesses in scheduling, communication, accountability or the handoff of responsibilities.

These conditions require different responses.

The solution might involve staffing strategy, workflow redesign, clearer responsibilities, better information or more effective use of technology.

The operating problem should determine the solution—not the other way around.

Once the condition is understood, the response can be designed around what actually needs to change and how the people, responsibilities, processes, information and technology involved should work together.

That is where a deeper understanding of operations can become a meaningful source of additional profit.

A Question Worth Asking About Your Next P&L

You do not need to analyze the entire company to explore this opportunity.

Start with one recent account start-up that required significant overtime or management intervention.

Look beyond the direct expenses charged to that account.

Consider the officer reassignments, replacement coverage, recruiting activity, training, supervisory involvement and other identifiable resources required to make the start-up successful.

Then ask:

Can we identify the full financial impact of what our organization had to do to support this new contract—not just the costs recorded against the contract itself?

Which costs disappeared once the account stabilized?

Which continued elsewhere in the organization?

Which might have been prevented by changing how the operation was organized, staffed, coordinated or supported?

You may discover that the apparent cost of servicing the new contract and the total incremental cost of supporting it are not the same.

That difference is worth understanding.

Because the next meaningful improvement in your company’s profitability may not require another contract, a higher billing rate or a reduction in service quality.

It may come from understanding—and improving—how your existing operation converts revenue into profit.

A Perspective from VAMO Digital

VAMO Digital provided this article to help contract security company owners and executives think differently about how operating conditions can affect the P&L and retained profit.

Our approach begins with understanding the operating environment and the underlying causes of recurring costs, then determining how people, responsibilities, processes, information and technology can work together more effectively.

We believe meaningful profit improvement begins with understanding where—and why—profit is being absorbed before deciding what needs to change.

Eric Galuppo is the founder of VAMO Digital and a Structural Growth Architect focused on how operating conditions affect profitability in private security companies and how people, processes, information and technology can be designed to work together more effectively.

 

 

 

 

 

 

 

How Security Guard Firms Can Stay Insurable in 2027

Tory Brownyard, Brownyard Group, CALSAGA Associate Member

What will the 2027 insurance market look like for security guard firms in California? The answer depends on how well firms balance a host of market pressures.

Demand for security services is soaring, a trend that is expected to carry into the new year. So will labor shortages, wage pressures, technology disruption and a challenging insurance market. Security firms that invest in the right areas can position themselves to secure favorable insurance coverage, capture their fair share of demand and stay profitable.

Finding High-Quality Guards

Firms seeking to attract top security talent may have to re-evaluate their salary structures in 2027. California’s minimum wage will increase to $17.40/hour starting January 1, as workers across industries have been struggling to make ends meet.

An April study by the UC Berkeley Labor Center shows why this is the case for security guards. Nearly half of security guards statewide (45%) are low-wage workers, and 80% say they do not earn enough to meet their basic living needs.

The wage pressures are running headfirst into increased demand. Our team at Brownyard Group audits every security guard account at year’s end, and our analysis shows that many firms are generating more payroll and more work. At the same time, the U.S. Department of Labor projects roughly 26,420 security guard job openings in California each year through 2034. That means firms may need to recruit experienced guards away from other employers, which will require paying a higher wage.

Using Technology to Fill the Gaps

As wages increase, security firms are assessing how technology can help mitigate wage pressures, assist human guards and provide affordable options to their clients.  Security trade shows now feature countless vendors selling everything from closed circuit television (CCTV) systems to robotic dogs and drones.

Yet firms must balance automation, efficiency and effectiveness, especially when technology is intended to replace human guards. An ideal mix might include using drones or other systems to monitor less populated areas, while using guards to patrol high-traffic areas.

Moving into New Classes of Business

We have seen an incredible demand for executive protection among private companies, including top tech and artificial intelligence (AI) firms, in recent years. While some companies may hire third-party firms to do the work, many others are creating their own in-house security teams.

Companies creating in-house teams are setting high salaries to attract former Navy SEALs and Secret Service agents. Some team leaders earn up to $300,000 annually, while other frontline guards make $100,000 a year or more. Because these teams are staffed by highly skilled professionals and the work is generally low-profile, executive protection is desirable from a risk standpoint, although the 2024 shooting of UnitedHealthcare CEO Brian Thompson stands as a stark reminder of the dangers that exist.

Firms looking to add executive protection to their services in 2027 should be aware that clients often require very high liability limits in terms of insurance, which can be hard to find in today’s market.

Navigating a Rocky Insurance Market

The overall insurance market has softened, but the security class has not. Several longstanding carriers have pulled out of the space over the past few years due to persistent hard market conditions, leaving many guard firms with limited options.

As some insurance carriers fight to remain profitable, they are adding multiple exclusions to their policies. Some exclude coverage for firearms or assault and battery. Others have put $100,000 sub-limits on care, custody and control coverage, which is arguably a guard firm’s biggest exposure.

To see why, consider a firm securing an office building. If someone commits arson while the guard is on break, the firm’s policy would pay only $100,000 toward what could be full liability for a multimillion-dollar loss.

Guard firms that require higher limits may have to shop for umbrella coverage, which is becoming more expensive. Umbrella premiums rose by an average of 5.3% in Q2 2026, marking the 35th consecutive quarter of premium increases, according to data from The Council of Insurance Agents & Brokers.

For firms that need to insure patrol vehicles, a persistently hard commercial auto market can add to the financial burden. Net losses incurred increased to a five-year high of nearly $50 billion in 2025 due to a rise in nuclear verdicts (jury awards that equal or exceed $10 million), causing commercial auto premiums to keep rising with no apparent end in sight.

How to Maintain Insurability

As insurance capacity decreases and premiums rise, security guard firms would be wise to position themselves as best-in-class risks in 2027. A few ways to achieve this:

Prioritize guard quality over labor costs. Insurers will feel more comfortable writing policies for firms that hire experienced guards. Firms should consider hiring former police officers, Secret Service and FBI agents and others with law enforcement backgrounds. If you cannot afford those candidates, look for guards with four to five years of experience in the security field. Firms that screen new hires thoroughly and invest in adequate training are also more likely to have a favorable loss experience and generate better coverage options.

Be selective about clients and assignments. Firms that cover low-profile risks such as office buildings, warehouses, government contracts and security consulting will be looked on favorably by insurers. Firms that cover high-profile risks such as hospitals, retail, schools, low-income housing, special events, dispensaries or anywhere that crowds gather may struggle to find favorable insurance coverage.

Strengthen your contracts. Look to limit your liability in any way possible. If you are covering high-profile risks, consider limiting your services to observe-and-report and make it clear that your guards will call law enforcement in an incident rather than engage with the perpetrators. Firms that use technology in place of guards should make sure their contracts limit liability, as technology may not be as effective as a physical guard.

Maintain strong fleet safety practices. Firms that implement defensive driver training, prohibit distracted driving, track driver behavior with telematics and keep their fleets up to date can keep their auto insurance premiums in check.

Negotiate liability limits with clients. Clients in hard-to-insure categories may ask you to carry high liability limits that are not financially feasible for your firm. In these situations, honesty is the best policy. Consider informing clients that higher limits are not available for that particular class of business, then negotiate a lower limit that satisfies the client and will not strain your budget.

Rising wages, staff shortages and insurability challenges may make guard firms nervous heading into 2027, but those that commit to hiring experienced guards, choose clients selectively and improve their loss history will be best suited to find favorable coverage.

Tory Brownyard, CPCU, is president of Brownyard Group, an insurance program administrator with specialty programs for select insurance groups. In addition to his responsibilities as president, he spearheads the Brownguard® Security Guard Insurance Program. The firm can be reached at Brownyard.com or 1-800-645-5820.

AI Won’t Replace Your Officers. But It Can Bolster Your Back Office.

Jordan Wallach, Belfry, CALSAGA Network Partner

What five years of building software for security guard companies has taught us about where artificial intelligence actually helps, and where it doesn’t.

Every operator I talk to, whether they run 40 officers or 4,000, eventually gets to the same math problem. You win a new contract, and the field grows. Uniforms, training, scheduling, another site to keep covered. But you can’t grow the back office at the same rate; the margins in this business don’t allow for it. So the same three or four people who were managing 60 officers are now managing 90, then 120, often with no more hours in the day and no real increase in headcount. Eight, ten, sometimes more officers for every person handling scheduling, timekeeping, payroll, and billing behind them.

That imbalance isn’t new. It’s the defining constraint of this industry, and it’s the reason so many owners I meet are, frankly, exhausted by the parts of the job that have nothing to do with why they got into it. They didn’t start a security company to spend their evenings reconciling time sheets. They started it to protect people and property, and to build something their officers and their clients could count on.

For a long time, technology didn’t help much with that. Most of the software this industry inherited was never built for it. It was adapted from field service, adapted from general workforce management, stitched together from three or four disconnected tools that didn’t talk to each other. Scheduling in one place, payroll in another, a spreadsheet somewhere holding the whole thing together. I’ve sat in enough back offices to know that “the system” often meant three systems and a lot of manual re-entry in between. In California specifically, where licensing renewals, meal-and-rest-break compliance, and multi-agency reporting add real weight on top of everything else, that gap has always been more costly than it looks from the outside.

So when the industry started hearing “AI” everywhere over the last couple of years, I understood the skepticism. Most of what gets called AI in business software today is vague… a chatbot bolted onto a dashboard, a feature nobody asked for, a headline with very little underneath it. And in an industry built on accountability, where a client’s first question after any incident is “who was responsible for this, and can you prove it,” handing anything to a black box was never going to sit well. It shouldn’t.

The question worth asking isn’t whether a piece of software uses AI. It’s much narrower than that: does it take work off a specific person’s desk, does it operate under rules that person controls, and can they see exactly what it did and why. Framed that way, AI stops being a headline and starts being a tool. One that either earns its place in a back office or doesn’t.

We’ve spent the last year building toward that narrower bar with Belle, the AI teammate inside our own platform. One version of Belle watches shifts in real time and reaches out to officers on the exceptions that used to sit on a dispatcher’s desk all day: a missed clock-in, a post that’s gone quiet, a shift nobody’s confirmed. It operates under rules operators set themselves, and it escalates the moment something needs a human decision. It doesn’t get to decide what “resolved” means… the operator does. A second version answers plain-language questions about a firm’s own operational data, so a question that used to mean a report request now takes seconds.

The clearest proof point we have is a customer, not a claim. Jason Fellows built LincRo Security Solutions in Minneapolis past 120 officers without ever hiring a dedicated dispatcher. Belle has responded to 2,719 missed clock-ins on his account, and roughly 86 percent of those ended with the officer back on the clock without anyone picking up a phone. As Jason put it to us: “We can rest easy knowing Belle is watching the schedule for us. We let her do her thing, and if she escalates something to me or my team, that’s when we step in and start making calls. Until then, we know she has it covered.” That’s not a headcount reduction. That’s a firm that grew without needing to build a function it couldn’t afford, and a team that gets to spend its attention on the handful of things each day that actually need a person’s judgment.

I’d offer California operators evaluating any AI claim from any vendor, ours included, a short list of questions worth asking before you believe it:

Is it actually built on your industry’s data? Consider: shifts, posts, billable hours… or is it a generic layer dropped on top of software that wasn’t designed for how you operate?

Does it work under rules you set, with a clear, visible handoff when something needs a human, or is it a black box you’re asked to trust on faith?

Will the vendor show you real usage numbers from a real customer, not a projected outcome?

And does the pricing reflect the work it’s actually doing for you, rather than a flat tax on the size of your team?

None of this is really about AI. It’s about the same thing this industry has always needed from its technology: tools built specifically for how security firms operate, that give owners and operations managers back the hours they didn’t get into this business to spend on paperwork. That was true when we started Belfry five years ago, built entirely around this industry after months spent listening to owners, operations managers, supervisors, and officers about what was actually getting in their way. It’s still the mission behind everything we build now: automate the busywork, never the judgment calls that actually need a person.

Jordan Wallach is co-founder and CEO of Belfry Software, an all-in-one operating platform built for security guard services companies. He can be reached at [email protected].

SB 1203 Campaign Update: The Fight Continues

Governor Newsom now has less than three weeks to take action on SB 1203. We have very compelling arguments against the bill and need to maintain pressure on the Governor’s Office to veto it.

Legislative Update

The lobbying team continues to meet with the Governor’s key staff to urge a veto.

Coalition for a Safe & Secure California

Total Coalition Members: 67

  • Statewide Business & Chambers of Commerce: 17
  • Minority & Ethnic Business Advocacy: 2
  • Small Business & Industry: 45
  • Senior & Consumer: 2
  • Social Justice: 2
  • Taxpayers: 1

We launched an Activation Toolkit to equip partners with the resources to submit letters to the Governor, call his office, and share selfie style videos telling their personal stories. This phase is focused on clearly communicating the impact of SB 1203 to the Governor and his office, while strategically engaging our organizational partners and their members to generate broad participation and, importantly, quality contacts with the Governor’s office.

Several partners generated hundreds of direct phone calls and delivered 10 letters to the Governor’s office, including from small private security companies and organizations such as United Latinos Action, California Consumer Advocates, the Gaslamp Quarter Association, the Long Beach Chamber of Commerce, and more.

Communications

A veto press release was sent to Capitol press corps reporters, with a focus on how this legislation is bad for workers.

Overall, news coverage of SB 1203, primarily generated by the CALSAGA team, has produced 101 stories across the internet, including most major news outlets in the Sacramento region, and landed on websites with a combined monthly visitor count of 1,062,191,320. Over 25,000 journalists were reached through the outreach.

Paid Outreach

Five weeks into the campaign against SB 1203, we’ve surpassed 4.25 million total views across Facebook/Instagram, X, and Programmatic.

The campaign is deliberately targeting the audience closest to the Governor’s office, and increasing how often they see the ads, to make sure this message sticks. On Facebook and Instagram alone, this key audience has now seen the ads 1,534,700 times: 410,387 as static ads and 1,124,313 as video ads.

The strategy is straightforward: put this issue in front of the people who shape the Governor’s decisions as often as it takes to make sure it can’t be ignored, with the overall goal of encouraging Newsom to veto the bill.

What Can You Do?