Human Resources Description

Kate

The Californian 2019 Q2 – ON-CALL AND CALL-IN SHIFTS REQUIRE PAYMENT OF WAGES

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ON-CALL AND CALL-IN SHIFTS REQUIRE PAYMENT OF WAGES

Jaimee K. Wellerstein, Esq., Bradley & Gmelich, CALSAGA Network Partner

A sales clerk brought a putative wage and hour class action against his employer, Tilly’s, alleging that store employees were due reporting time pay for on-call shifts or call-in shifts in which employees were required to contact the stores two hours before the start of their shift to determine whether they were needed.  The sales clerk argued that having to be on a tether to determine if he should have to report is the same as being under the employer’s control and should be compensated as reporting time.

The employer argued that on-call scheduling is not what triggers the Wage Order reporting time pay requirements, but rather when they actually report physically to work.  In Ward v. Tilly’s, Inc., 31 Cal. App. 5th 1167 (2/4/2019), the Court of Appeal sided with the employees and held that if an employer directs employees to present themselves for work by telephoning the store two hours prior to the start of a shift, then the Wage Order’s reporting time requirement is triggered by the telephonic contact.

Reporting time pay is one-half of the scheduled shift and, in any case, not less than 2-hours of pay at straight time. (See, IWC Wage Order No. 4, section 5.)

LESSON LEARNED:  Although the On-Call or the Call-In models are not typically used in the security industry, if you do, be aware that each employee is deemed to be under the employer’s control while they are waiting to see if they will be needed.  As such, reporting time wages are required to be paid.

Jaimee K. Wellerstein is a Partner at Bradley & Gmelich LLP, and the Head of the firm’s Employment Department. Jaimee concentrates her practice in representing employers in all aspects of employment law, including defense of wage and hour class actions, PAGA claims, discrimination, retaliation, harassment, wrongful discharge, misclassification, and other employment related lawsuits. She also provides employment counseling and training in all of these areas. Jaimee routinely represents employers in federal and state courts and in arbitration proceedings throughout the state, as well as at administrative proceedings before the Equal Employment Opportunity Commission, the California Department of Labor Standards Enforcement, the United States Department of Labor, and other federal and state agencies. Jaimee assists as a Legal Advisor to CALSAGA, and is a member of ASIS International. She is rated AV-Preeminent by Martindale Hubbel, the highest peer rating available. jwellerstein@bglawyers.com 818-243-5200.

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Kate

The Californian 2019 Q2 – 3 HIGH-VALUE QUALITIES OF LEADERSHIP YOU NEED NOW MORE THAN EVER

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3 HIGH-VALUE QUALITIES OF LEADERSHIP YOU NEED NOW MORE THAN EVER

Anne L. Laguzza, M.A., The Works Consulting

There are many contradictions about what leadership is and the qualities needed to be an effective leader. From below looking up, leadership appears to be a form of dictatorship.

One person presides over a larger group of people. That group must follow the directions of the leader or suffer the consequences.

True, healthy leadership doesn’t align with this structure. Instead, the framework for healthy leadership embodies three high-value qualities.

Leadership Defined:

The position or function of a leader, a person who guides or directs a group.

Notice how this definition does not say who is in charge nor does it mention title or rank. It does not mention serving authority, most skilled, loudest, tenured, or aggressive person. It only says the person who guides or directs the group.

This is great news because it means that a leader may present themselves anywhere in an organization. It also means that what matters most is the guidance a person provides not the title or pay grade they hold.

So what are the three high-value qualities embodied by someone skilled at guiding and directing others? How can you embrace them to level up your leadership ability?

High-value #1: Commitment.

With commitment, an individual knows that regardless of how they feel they will do what needs to get done. No matter what.

For example, think about a time when you committed to something significant and you didn’t want to let anyone down. You found reserves of energy, creativity, and resiliency you may not have known you had to fulfill your commitment.

High-value #2: Courage.

Courage because there will be conflicts that need immediate resolution. Conflict is inevitable and can be a healthy part of team development. Only a strong leader will face them head on to seek resolution.

Someone lacking courage will more often than not find a way to delegate, delay or defer. That of course is not leadership at all, even though it may occur more often than it should.

High-value #3: Discipline.

In today’s world discipline has become somewhat of a profane word. What comes to mind when hearing the word is either a drill sergeant or a parent disciplining a child.

While both examples make sense, the discipline of leadership is not punishment focused. Discipline is simple, do what is right not what is easy.

Discipline glues commitment to courage, for the purpose of attaining a meaningful end goal. This combination eliminates excuses and justifications leaving only the example of how to lead.

Commitment, courage, and discipline are also the high-value qualities that separate great from good. These powerful qualities take someone with mediocre skills and give them the ability to influence, guide, and achieve.

These high-value qualities are a powerful contradiction to what so many think leadership is. From those doing the ordering to those who accept those orders. Contrary to how it looks from the outside, leadership is not the many holding up the presiding few.

Leadership is the few who step up to uplift those they guide.

It is those who commit not quit. Who show courage not cowardice. Who choose discipline over comfort. Those are the ones showing the high-value qualities demanded of leadership now more than ever.

Anne Laguzza is the President of The Works Consulting. 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.

Prior to founding The Works Consulting in 2001, Anne served as the Regional Human Resources Director for a Fortune 500 distribution company where she led a merger transition team and was responsible for strategic planning, implementing new policies and procedures, workforce restructuring, compensation structures, and integrating the work cultures for over 600 employees.

In addition, Anne was formerly the Human Resources and Training Director for a start-up entertainment company where she organized and implemented a company-wide change management program that involved new company direction and strategic planning. Prior to her work in the entertainment industry, Anne served as the Regional Training Manager for a nationwide retailer where she developed and launched a multi-state training program for human resources managers as part of a corporate expansion project.

Anne earned her Master of Arts degree in Organizational Management from Antioch University, and holds a Bachelor of Arts degree in Psychology from the University of California, Riverside. She is an active member of the Society of Human Resources Management, and is a board member for Harbor Interfaith Services and an advisory board member for Arthritis National Research Foundation. Anne has taught human resources and management courses at Long Beach City College and California State University, Dominguez Hills, and volunteers at non-profit organizations teaching interviewing skills to adults seeking re-entry into the workforce.

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Kate

The Californian 2019 Q1 – AN INSURANCE GUIDE: THE MINDSET OF AN UNDERWRITER IN THE PRIVATE SECURITY INDUSTRY

AN INSURANCE GUIDE: THE MINDSET OF AN UNDERWRITER IN THE PRIVATE SECURITY INDUSTRY

Blair Brownyard, Brownyard Programs

To the business world, insurance is a necessary evil. However, with insurance costs increasing each year, many security companies would go naked, if their clients didn’t insist that they carry insurance. No doubt after your latest renewal increase, this seems like a reasonable proposition. To minimize your next rate increase, here is the mindset of an insurance underwriter who is asked to underwrite and price the liability insurance of a private security company.

With most products, you know what the cost is when they are sold. Not so with insurance products; an insurance company doesn’t know how much their product costs until 5-10 years after they have sold it. And that’s why the pricing of liability insurance is so unpredictable. To give themselves an edge in predicting how much they pay in claims versus how much they received in premiums, insurance companies develop underwriting guidelines/criteria/signposts, which are supposed to help them determine the probability of losses with a specific type of insured to help them make a profit. The four basics of underwriting guidelines are:

  • Prior Loss/Claim Experience
  • Type of Operations
  • Company Management and Sophistication
  • Contract Language
  1. Prior Loss/Claim Experience

This is one of the most critical elements in underwriting a company. Review your current claims through your insurance broker and be aware of your current claim expenses and reserves annually. A poor claim history has a big impact on your premium costs. A poor claim history is due to a number of factors, some of which can be avoided based on the factors below.

  1. Types of Operations

Different clients will bring different risk to your company because many types of operations have historically brought more likelihood of claims. Your large contract with a fast food chain could be enticing for the money but may result in adverse loss experience and a higher insurance premium. Conversely, a gated community client may help reduce your underwriting factors to the carrier, thus decreasing your premiums. Here is a general list of high risk operations that create higher than average premiums. The locations of these operations are also a big factor – the higher the crime in the area, the higher the risk:

  • Anywhere alcohol is served or sold
  • Crowd control at stadiums, events, or concerts
  • Low-income housing
  • Fast food chains
  • Schools
  • Movie Theaters or Malls
  1. Company Management and Sophistication

Underwriting will typically look at a number of factors relating to how well the company is run from a management perspective. Here are three items that help decide how well the company operates.

Screening, Training, and Supervision

Insurance companies look to the business practice of a company in their requirements for education, training, and supervision of employees. This varies across states and the industry as a whole. The 2018 28-member ASIS standards and guidelines commission has decided there would only be guidelines suggested within the industry and not a set industry standard for all to achieve. With regard to underwriting, underwriters will still look for the highest required guidelines in the industry and rate the company to those suggested guidelines.

Pay Scale and Benefits Given to Employees

Offering higher pay attracts higher qualified, better trained applicants. This translates to smarter, more qualified employees who perform better. And if the company provides health, life, or pension/profit sharing plans, this makes for a more satisfied and healthier employee who is less likely to act negligently or file frivolous workers comp or employee practices claims.

What is the Education/Background of the Principals

Experience in private security, law enforcement, or military, etc. as well as involvement in security management training through organizations like ASIS International or other business programs are positive impacts on the operations of the company and show underwriters an ability of management to overcome obstacles.

  1. Contract Language

Insurance companies may look at your contracts to see how you are protecting yourself in the event of a claim. Unfortunately, your Clients, the Public, and sometimes even the courts think guard companies are deep pockets to cover losses in the event of personal injury. This is attempted by clients in two ways:

  • Indemnification Agreements
  • Additional Insured language

INDEMNIFICATION AGREEMENTS

In construction or service contracts, a hold-harmless or indemnity agreement will be included in the general contractor’s contract to the subcontractor. In order for your security company to limit claim expense and payments, the clause should not include the liability and mistakes of anyone except your own employees. The larger property managers/owners force many broad form indemnity agreements on the security companies for a deep pocket in the event of any accidents on premises. The good news in California is that an indemnity clause for your client’s sole or willful acts is void by public policy. However, be aware, many will still try to pass it through in their contracts.

Additional Insured LANGUAGE

Closely related to indemnity agreements discussed above, additional insured endorsements are used to increase the obligation of your company to defend and indemnify the owner. This indemnity is usually confirmed to them by a certificate of insurance. Your underwriter will be asked to approve additional insured endorsements for many companies by contract. But as parties requested have less and less relation to the contract, the underwriter will likely question the need for such an endorsement. Any additional insured and indemnity requests need to be scrutinized here to limit the exposure for claims. Like all contracts and RFPs, it is advised to have counsel review these clauses to ensure your client is not trying to shift a disproportionate amount of risk to your company.

 

All factors discussed above are the basics for all underwriting in the security industry. Many might dive deeper into data on location of operations or screening processes. And many might try to look at seemingly unrelated issues. This is all part of the investigative process to ensure the risk is being adequately evaluated for claim potential. This is not an exact science, maybe someday we will have exact predictions of claims, but we are not there yet. It is important to note that security risks are high-severity risks and not high-frequency; e.g. many companies can go decades without one liability claim and then get hit with a monster claim. That is the nature of a security risk; a very unpredictable nature. For now, the underwriting process is a moving target for all carriers, and security companies will be best served by building a trusting, open relationship with a reliable carrier who truly understands their industry.

 

Blair Brownyard has been the VP of Brownyard Programs, Ltd. and has worked exclusively with the security industry for the past 8 years. He has a J.D. from Touro Law in Central Islip, NY. Brownyard Programs, Ltd. has underwritten the security industry for the past 25 years and was purchased by Crum & Forster Insurance in 2015 to join forces with the other oldest name in security insurance, CoverX Specialty. Together, Brownyard Programs and the experienced team rebranded as Crum & Forster Specialty, have a suite of innovative products and services to grow with the security industry into the next generation.

This information contained herein is provided for information purposes only and is not intended to be a representation of coverage that may exist in any particular situation under a policy issued by one of the companies within Crum & Forster. All conditions of coverage, terms, and limitations are defined and provided for in the policy. This information is intended for use as a guideline and is not intended as, nor does it constitute, legal or professional advice. In no event will Crum & Forster or any of its affiliates be liable in any manner to anyone who has access to or uses this information.

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Kate

THE CALIFORNIAN 2018 Q4 – SB 1343 EMPLOYER ALERT – NEW SEXUAL HARASSMENT PREVENTION TRAINING REQUIREMENTS

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SB 1343 EMPLOYER ALERT – NEW SEXUAL HARASSMENT PREVENTION TRAINING REQUIREMENTS

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

With the changes that are happening in society regarding the “Me too” movement and the subsequent litigation surrounding the allegations, it does not surprise me that California legislators passed Senate Bill 1343, effective January 1, 2019.

The current law requires employers with 50 or more employees to provide at least 2 hours of prescribed training and education regarding sexual harassment, abusive conduct, and harassment based upon gender, as specified, to all supervisory employees within 6 months of their assumption of a supervisory position and once every 2 years, as specified.

The new law reduces the 50 employee trigger and now requires an employer who employs 5 or more employees, including temporary or seasonal employees, to provide at least 2 hours of sexual harassment training to all supervisory employees and at least one hour of sexual harassment training to all nonsupervisory employees by January 1, 2020, and once every 2 years thereafter, as specified.

Here is a brief summary of the new bill:

1. All employers with 5 or more employees, including temporary or seasonal, must provide all employees in a supervisory role a minimum of 2hrs of sexual harassment training (this does not include bullying, which is required and is in addition to the minimum 2hr requirement).

2. All employers with 5 or more employees, including temporary or seasonal, must provide all employees in a NON supervisory role a minimum of 1hr of sexual harassment training.

3. The period in which this is to be accomplished is 1/1/2020, if the employee is currently employed.
a. for new employees in supervisory or non supervisory positions, the training must be conducted at time of hire or within 6 months of hire
b. for employees entering a new, supervisorial role, the training must be conducted within 6 months of their new role
c. for temporary, seasonal or employees hired to work less than 6 months, the training must be conducted within 30 days of hire or 100 hours worked, whichever occurs first.

4. Training for both the minimum 2 hour training for supervisors and the minimum 1 hour training for non-supervisory employees must continue every 2 years, thereafter.

5. Post-training documentation must be retained for 10 years, irrespective of the employee’s employment status with the company.

6. The bill also requires DFEH (dept. of fair employment and housing) to develop or obtain and post 1hr and 2hr online courses. An employer will have the option to conduct online training or classroom setting training.

7. All employers must make sure that their sexual harassment policy is in line with the current policy revision of 04/01/2016.

8. The new sexual harassment policy requirements which went into effect on 04/01/16 in part require that you discuss your policy at time of hire and or during a new hire orientation.

9. Another requirement is that you provide each employee with a copy of your policy with an acknowledgement form for them to sign stating that they have received, read and understand your policy.

10. An often overlooked regulation that took effect in 2018 requires that employers display a poster regarding transgender rights prepared by the California Department of Fair Employment and Housing.Below is a link to more details of SB 1343:

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB1343

If you have any questions, please do not hesitate to contact us.

 

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.

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Kate

THE CALIFORNIAN 2018 Q3 – FEELING THAT CANNABIS HIGH

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FEELING THAT CANNABIS HIGH

by Stephan P. Hyun, Esq.

 

Starting on January 1, 2018, cannabis-related business activity became legalized in California, resulting in a lot of questions about the opportunities that have now become presented.  We as legal counsel often get asked:  Should I do business with a cannabis company?  What should I look out for?  How do I protect myself?  After all, this legalization affects both the licensed cannabis businesses themselves as well as the businesses who do business with them.

Here are important issues that we frequently deal with in protecting our clients who want to start doing business with a cannabis company.

1) Typically in contracts, there are provisions that say how the agreement will be governed and interpreted, as well as where any claims can be brought.  Having these provisions properly drafted can be ‘life-savers’ because while cannabis is legal in California, it is not legal federal-wide.  Also since California has enacted additional protections to ensure that the contract can be enforced under California law, adding certain clauses and language in your contract can allow California courts to determine that your contract is valid and enforceable.  This will help you in instances when the cannabis business your dealing with is not upholding their end of the bargain.

2) We advise our clients to put into the agreement ways in which you can terminate or suspend your services immediately without any notice.  When advising our clients and drafting their contracts, we take into account the possibility of the federal government investigating or prosecuting cannabis activity even in states where it’s ‘legal’.

3) Our firm has negotiated key provisions to be incorporated into cannabis security service contracts.  One of the provisions that we insist be carved out is about when the cannabis business will defend you and cover your losses if the federal government comes after you for being seen as facilitating/assisting a cannabis business.

4) In the agreements we have worked on, we want to ensure our clients are protected by eliminating consequential damages.  Consequential damages are damages that go beyond the contract itself and flow from some type of failure in adhering to the contract.  Consequential damages in a cannabis-related situation would be the loss of the cannabis product that may have been stolen, or the cannabis company’s lost profits as a result of the security officer failing to show up at the dispensary on time.  For our clients, we advise them to limit their exposure, and draft contracts to meet that end.

5) Because many banks do not want to deal with cannabis businesses, cannabis businesses frequently pay in cash.  We counsel our clients to be wary of the temptation to be paid in cash.  By accepting cash, you could be accused of money laundering by the federal government.  Further, federal prosecutors may be suspicious that you are not simply a security services provider, but rather a pawn in the cannabis company’s scheme to hide where the money is truly coming from.  Certainly, this is unwanted attention for your business.

Recommendation:  We recommend that you get ahead of the ball and be proactive in preparing separate cannabis security service agreements, different from your standard contracts.  That way you lead in the negotiations for your services versus the other way around.  By understanding the intricacies and interplay between federal and state cannabis law, you will be able to fully capture this new opportunity and better protect yourself from this emerging cannabis high.

 

Stephan P. Hyun is an associate attorney at Bradley & Gmelich LLP, where he represents clients in a variety of business litigation and general liability matters, with a focus on providing legal counsel in business transactions and contracts, as well as business formation/development.  His practice also extends to handling licensing and compliance issues for both private security and cannabis industries.  He recently presented on the topic of Cannabis in California at the CALSAGA conference.  shyun@bglawyers.com  /  818-243-5200.

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Kate

THE CALIFORNIAN 2018 Q2 – PERFECTING THE PRE-HIRE PROCESS

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PERFECTING THE PRE-HIRE PROCESS

Kwantek Team

For 15 years, Kwantek has served the recruiting needs of thousands of companies across the nation. Most of our clients have a need to fill low-paying, hourly jobs. They use our applicant tracking software to post these jobs en masse across multiple job boards and take advantage of our seamless onboarding process once hired.

A natural byproduct of these types of these jobs is poor employee retention. After monitoring the pre and post-hire process for over 1,000,000 security and building services jobs, we’ve been able to identify three critical pieces of data for these industries that directly correlate retention back to the interview process:

1) 50% of scheduled interviews will ever show up for the interview.

2) Over 90% of interviewees are offered jobs in the interview process.

3) Over 40% of new hires make it past 30 days of employment.

In this five-part blog series, we will discuss the critical stages of the pre-hire process and how you can make simple adjustments that will help you reduce your retention rate.

Blog #1: Who’s Interviewing Who? A Counter-Intuitive Approach to the Hiring Process

Blog #2: The Most Important Person in the Interview Process

Blog #3: The True Goal of the Phone Screen

Blog #4: How to Modify Your Job Application to Increase Applicant Volume

Blog #5: Mastering Messaging in Your Recruiting Process

Perfecting the Pre-Hire Process Webinar

If you’ve found this series helpful, we invite you to watch a replay of our webinar where we went even more in-depth on each phase of the pre-hire process. Join our CEO, Collie King, as he dissects each stage of the applicant funnel to help you identify which parts of the process you need to improve.

In the webinar, you’ll learn:

  1. How to leverage your pre-hire process as a key strategy in scaling your business.
  2. Which numbers to track in your pre-hire process and why.
  3. How to build trust with applicants and make them want to work for you.
  4. How to generate more applicants, more interviews, and more accepted offers.
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Kate

The Californian 2018 Q2 – 2019 Workers Compensation – The First $250 of Every Claim Is Excluded

2019 Workers Compensation – The First $250 of Every Claim Is Excluded

Shaun Kelly, Tolman and Wiker

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Employers in California will be receiving some relief on their Workers Compensation Experience Modifications in 2019. The Workers Compensation Insurance Rating Bureau (WCIRB) will be eliminating the first $250 of each claim, before the calculation of an employers’ experience modification in 2019.

The rationale behind the change is as follows:

  •   Increase the reporting of all claims (Including First Aid) to obtain credible information on injury and accident experience.

  •   Eliminate disincentives to reporting claims which will enable insurance carriers to improve their ability to manage claims.

  •   Improve healthcare to employees, by giving employers an incentive to file first aid claims.

  •   The change will benefit the employer by lowering their experience modification, however the effect overall will be modest for employers. So, please do not expect significant reductions.

Here are some “Frequently Asked Questions” that were published on the WCIRB website regarding the change:

How does the $250 loss exclusion work? Under California’s Experience Rating Plan only the amount of each of your claims, up to your primary threshold, is used in the experience modification computation. With the $250 loss exclusion, that amount is reduced by $250. For example, if you have a $10,000 primary threshold and a single claim of $5,000. The amount used in the experience modification computation is $4,750. If you have a single claim of $15,000 the amount used in the experience modification computation is your primary threshold ($10,000) less $250, or $9,750.

Is the first $250 excluded from all claims? Yes, any claim incurred against policies incepting during the experience period for your 2019 experience modification, which include 2015, 2016 and 2017 policies, will be used in the experience modification computation at $250 less than its reporting value.

What if I file a claim that’s valued at $250 or less? A claim with a reporting value of $250 or less will continue to be shown on the experience modification worksheet, but will not be used in any way in the experience modification calculation.

How this will affect each employer individually will depend on how many claims are incurred during the experience period (3 years) used for the experience modification calculation.

The WCIRB will be monitoring the $250 value that is being used and will adjust in subsequent years for inflation.

If you would like more information on how this change will affect you or how the Workers Compensation Experience Rating Plan works, please do not hesitate to call.

 

 

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.

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Kate

THE CALIFORNIAN 2018 Q1 – CHANGES TO CALIFORNIA WORKERS’ COMPENSATION PREMIUM ASSESSMENTS…

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Changes to California Workers’ Compensation Premium Assessments…And what the heck are premium assessments anyway?

Nick Langer, Turner Surety & Insurance Brokerage Inc. 

On November 30, 2017 the California Department of Industrial Relations issued a notice to “All Insurers Authorized to Transact Workers’ Compensation in California” which detailed the 2018 workers’ compensation premium assessments. The new premium assessment rates ultimately increase the total cost of workers’ compensation for employers. If you are like most other employers, the premium assessments listed on your insurance policy most likely go over looked. Let’s take a step back to fully understand what “premium assessments” are and how they affect your workers compensation costs.

When you’re not out trying to solicit new clients, manage your employees and juggle expenses, take a moment to dust-off the actual worker’s compensation policy that your company maintains. Thumb through the pages until you reach the “Declarations Pages.” Within the Declarations you will stumble across the classification and/or rating schedule. At the bottom of this page you will see various line items labeled some version of “CA […..] Assessment.” Labor Code Sections 62.5 and 62.6 authorize the Department of Industrial Relations to assess employers for the costs of the administration of the workers’ compensation, health and safety and labor standards enforcement programs. According to the California Department of Industrial Relations, “These assessments provide a stable funding source to the support operations of the courts, to ensure safe and healthy working conditions on the job, to ensure the enforcement of labor standards and requirements for workers’ compensation coverage.”

Some of the Workers’ Compensation Premium Assessment (WCPA) began in 2008 due to a budgetary crisis in California. The WCPA was a funding shift designed by the California legislature to stabilize funding for the Department of Industrial Relations (DIR) operations, which includes the Divisions of Workers’ Compensation, Occupational Safety and Health and Labor Standards Enforcement. The Assessments were intended to continue funding the efforts of Division of Occupational Safety & Health (DOSH) and Division of Labor Standards Enforcement (DLSE). DOSH & DLSE rely upon stable budgets to provide California employers with benefits including:

  • Enforcement of programs to eliminate the underground economy
  • Labor law enforcement activities to ensure a more competitive business environment by pursing employers who break employment laws
  • Pursuing uninsured employers who fail to carry workers’ compensation coverage for their workforce
  • Ensuring workplace safety
  • Providing compliance assistance to employers who are striving to increase safety on their jobsites
  • Decreasing injuries, illnesses and fatalities at jobsites across the state

Insurance carriers must advance these assessments to the Department of Industrial Relations and are required to collect the assessments from policyholders during the policy term. Assessable Premium is the premium the insured is charged after all rating adjustments (experience rating, schedule rating, premium discounts, expense constants, etc.) except for adjustments resulting from the application of deductible plans, retrospective rating or the return of policyholder dividends.

Included below are comparison charts of the assessment factors to be applied to the estimated annual assessable premium for 2018 and the previous assessment factors for 2017.

2018 Workers’ Compensation Premium Assessment Rates – Insured Employers
FUND 2018 Rate Factor 2017 Rate Factor Variance (%)
California Workers’ Compensation Administrative Revolving Fund (WCARF) .008146 .003128 160%
California Occupational Safety & Health Fund (OSHF) .002655 .002305 15.18%
California Workers’ Compensation Fraud Assessment (FRAUD) .00255 .001675 52.24%
California Uninsured Employers Benefits Trust Fund(UEBTF) .000573

 

 .000721 -20.52%
California Subsequent Injury Benefits Trust Fund (SIBTF) .003599 .001335 170%
California Insurance Guarantee Association (CIGA) .0200 .0200 —
California Labor Enforcement & Compliance Fund (LECF) .00215 .001918 12.10%
TOTAL of all Assessments .039673 (3.97%) .031082 (3.11%)              27.64%
Rate Factors are charged on “Assessable Premium”
2018 Workers’ Compensation Premium Assessment Rates – Self-Insured Employers
FUND 2018 Rate Factor 2017 Rate Factor Variance (%)
California Workers’ Compensation Administrative Revolving Fund (WCARF) 0.032620

 

 .025226 29.31%
California Occupational Safety & Health Fund (OSHF) 0.011066

 

 .012111 -8.63%
California Workers’ Compensation Fraud Assessment (FRAUD) 0.008790

 

 .009262 -5.10%
California Uninsured Employers Benefits Trust Fund(UEBTF) 0.007006

 

 .004707 48.84%
California Subsequent Injury Benefits Trust Fund (SIBTF) 0.011754

 

 .006927 69.68%
California Labor Enforcement & Compliance Fund (LECF) 0.008882

 

 .010479 -15.24%
TOTAL of all Assessments .080118

(8.02%)

 .068712

(6.87%)             

 16.60%
Rate Factors are charged on “Assessable Premium”

Let’s take a look at what these funds actually support.

WCARF – Workers’ Compensation Administration Revolving Fund adds funding to the administration of the workers compensation system which includes the return to work program, and employers’ workers’ compensation coverage compliance enforcement. Additional funding comes from fines, fees, and penalties. California Labor Code Section 62.5

OSHF – Occupational Safety and Health Fund provides funding to state safety and health agencies, to implement and enforcement of current occupational health and safety laws, and promoting safe and healthful working conditions.  California Labor Code Section 62.5

WCFA – Workers’ Compensation Fraud Assessment funds investigating and prosecuting worker’s compensation fraud. California Labor Code Section 62.6

UEBTF – Uninsured Employers Benefits Trust Fund pays benefits to employees injured while working for illegally uninsured employers. California Labor Code Section 62.5

SIBTF – Subsequent Injuries Benefits Trust Fund pays for workers who have suffered serious injury and who are suffering from permanent disabilities or physical impairments that were present before the injury. California Labor Code Section 62.5

LECF – Labor Enforcement and Compliance Fund. ABX4-12 (2009) founded the LECF which enforces Employer Compliance with labor standards and secures worker compensation insurance by funding the Division of Labor Standards Enforcement (DLSE). California Labor Code Section 62.5

CIGA – California Insurance Guarantee Association. Created in 1969, CIGA settles unpaid claims of insolvent insurers that are licensed to do business in California. CIGA consists of three separate funds that guarantee different lines of insurance: workers’ compensation; personal lines (auto, homeowners, personal liability); and other (commercial property, liability, products liability, supplemental and pollution). CIGA is not an insurance company. CIGA was created to provide only a limited form of protection in the event of insurer insolvency. California Insurance Code Section1063.5

Circling back to the 2018 workers compensation premium assessment rates, it is easy to see that California Employers will be spending more money this year on workers’ compensation expenses. In summary, insured employers will be paying assessments at a rate of nearly 4% on top of “assessable premium” which is a 28% overall increase for assessments over 2017. Self-Insured employers are experiencing a 17% increase.

If you have additional questions regarding the assessments on your workers compensation policy we encourage you to discuss these items with your insurance broker/agent or to contact the California Department of Industrial Relations whom oversees the collection of these assessments. DWC@dir.ca.gov Phone: 1-844-522-6734

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Kate

THE CALIFORNIAN 2018 Q1 – HOW TO WRITE THE PERFECT JOB LISTING FOR A SECURITY GUARD

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HOW TO WRITE THE PERFECT JOB LISTING FOR A SECURITY GUARD

Collie King, Kwantek

Years ago, when the recession was at its peak, it was easy to write a job posting and get dozens of applicants.

Our applicant data shows the average job posting for a Security Guard received 30.3 applicants per job in 2012. In 2017, the average job posting for the same Security Guard position receives just 15.9 applicants.

Simply put, there are more jobs available than job seekers in today’s economy. It’s vital that you stand out from your competition (hint: this is NOT just other Security Guard jobs) and write job postings that appeal to the individual.

Kwantek’s Applicant Tracking Software has generated over one million applications for Security Guards, and our onboarding tools give us the data to help us understand how long those applicants stay in the job.

We have found the commonalities in job postings that not only get lots of applicants, but produce long-lasting employees. Here is what we’ve found:

Part One – The Preview: What Gets Them to Read the Next Line?

According to the Pew Research Center, 77% of all adults own a smartphone, up from just 35% in 2011.

And according to Indeed, over 80% of building, grounds cleaning and maintenance job searches originated from a mobile device. It’s safe to say security guards aren’t far behind.

The first step is to get people to click your job listing as they are scrolling through the job board.

If they’re on a phone (and more often than not they are), you have about one sentence to get them to take that action.

So what gets them to read that next line? The first step is understanding how to craft your title and description.

Tip #1) Include specific locations in the title, but NOT just ‘City, State’

Most job boards actually have an algorithm to lower job postings that just say ‘City, State’ in the title. It’s important to be extremely specific about the location.

For example, if your client is in the downtown area of Louisville, KY, make your title say “Downtown Louisville, KY” and not just “Louisville, KY.” Or if your client is in the Highlands Neighborhood, include that in the title such as “Highlands/Louisville, KY”

Tip #2) If you have competitive rates, add it to the title

Competitive rates displayed in the job title are more likely to attract applicants. This may seem obvious, but including the pay (if it’s a good rate) provides a huge boost to your job posting’s click rate.

Tip #3) Post new jobs consistently for better results

The final thing the user sees is the day the posting was created. If you have an evergreen job posting, it’s vital to continuously refresh it. Otherwise, the user perceives the job as being either filled or undesirable, and the click rate will decrease.

Here is a handy graphic to share the differences with you:

Part Two: What’s in it for them?

Retention starts with the job posting.

Let that sink in. It’s vital to get the job posting right, especially with Security Guards. Think about the best qualities of a good Security Guard: they crave structure and a plan and they thrive on facts.

To understand what’s in it for the person applying for the job, ask yourself why somebody would like this job. Also ask yourself why somebody would not like this job.

You must include all the details of the job within the posting itself. Will it require the Guard to work in the middle of the night? Will the Guard be surrounded by lots of people? Will the Guard be sitting or standing? Make sure every possible detail involving essential functions of the job are communicated clearly.

Beyond the essential job functions, why is somebody going to really enjoy the job?

If the Guard is doing their job correctly, they could go weeks or months without ever seeing their boss. Is that the case with your available positions? If so, mention it! Autonomy is something most humans crave.

Will they have access to food and drink? Will they get any kind of equipment? Will they receive ongoing training? Think about all the good things the Guard will receive upon accepting the offer, and be sure to include them in your posting.

Lastly, one of the biggest reasons for not applying to a job is perceived job requirements the applicant may not have. If you require a guard card, feel free to mention that, but also mention that you could help someone easily apply for their guard card. Help them envision an easy path to success.

Remember, you have two goals with your job posting:

Make sure plenty of qualified candidates apply and make sure those candidates have a high likelihood of retention.

In summary, the best thing to do before posting your job is to simply know exactly what you are looking for before you post it. That way, you can create job descriptions that are:

  • Highly specific
  • Focused on them (not you)
  • Descriptive of ‘how’ they will do a job
  • Void of the unknown

To learn more about best practices in hiring security guards, click here to download Kwantek’s free eBook, “The 3-Step Hiring Guide for Growing Security Companies.”

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Kate

THE CALIFORNIAN 2018 Q1 – FOUR THINGS YOU NEED TO KNOW WHEN IT COMES TO HIRING AND ONBOARDING VETERANS

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FOUR THINGS YOU NEED TO KNOW WHEN IT COMES TO HIRING AND ONBOARDING VETERANS

Anne L. Laguzza, M.A., The Works Consulting

It is important to remember veterans are coming from a culture, community, and environment
that is unique compared to the corporate world. From communication to expectations, here is
what you need to know when hiring veterans for your organization.

#1 Awareness of the cultural shift taking place for these individuals will enhance the entire
hiring experience. From the moment you review their application and resume through to
the hiring decision itself.
DO: Be aware of the major culture shift from military to civilian work.
DON’T: Assume they’ll just adapt and figure it out without training and structure.
Yes, there’s a different language, culture, and set of expectations in military life. However, with
proper training and communication you can utilize their ability to adapt and their openness to
direction to minimize those differences. This upfront investment in training will ease the
onboarding process, by encouraging them to connect their work to the company mission. This
will set them and the organization up for long-term success.

#2 Use your new awareness regarding veterans who are new hires for your organization.
DO: Be empathetic by taking time to learn about the military culture.
DON’T: Gloss over this opportunity for connection and understanding.
While discipline, work ethic, and camaraderie are required in the military culture. understanding
where these qualities come from will benefit your organization. By taking the time to place
yourself in their boots, learning how their military experience shaped them into who they are
today, will create a deeper connection.
Remember, their experience is not typical, yet many aspects of corporate culture bare strong
resemblance to that of the military. The employer should learn about military culture, by reading
articles, and asking veterans and/or others with military experience. Knowing how military
experience and culture are similar to or different from your organization’s culture will help the
applicant if selected.

#3 One of the most crucial things you need to do prior to interviewing a veteran.
DO: Find out how their military job description relates to the job they are applying for in your
organization.
DON’T: Miss the chance to bridge the gap between what they did and what they can do in this
new role.
Military jobs have numerous correlations to civilian positions. What may seem like unrelated
skills may in fact be easily transferable, ask about their specific duties and have them
communicate how they are transferable to the position. Finding common ground will improve
rapport, and make the interview and selection process more efficient, and you’ll also learn more
about their service experience.

#4 How do you put it all together?
DO: Express how you plan to take time to learn about them and their skills to assist with
training.
DON’T: Assume they’ll just figure it out, or behave in a certain way, without consistent
communication and training.
Now that you know the DO’s of hiring veterans you see these same four characteristics can be
applied to any individual going through the hiring and onboarding process. The value of applying
these tips with veterans specifically, is not just that your effort will be recognized and
appreciated, although it certainly will. The value is in the connection they’ll experience from the
very beginning helping them focus on their job, and creating cohesion between their work and
the company mission. They will begin to see long-term success for themselves within your
organization.

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