Aley Moyer

The Californian 2021 Q4 – SOLVING THE PROFITABILITY PROBLEM WITH JOB COSTING

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SOLVING THE PROFITABILITY PROBLEM WITH JOB COSTING

Brandy Tomasek, TEAM Software, Network Partner

There’s no doubt you’ve heard something described as the “meat and potatoes” before. The saying refers to the most basic or fundamental aspects of something. For your security company, the meat and potatoes of your business are your jobs. But keeping your security jobs profitable is a challenge. Especially, when labor and overhead costs are on the rise due to added costs of the pandemic.

The challenge: staying profitable when you’re up against tight margins. 

In an industry where profit margins are already thin, you don’t have a lot of wiggle room to dip into your profits to offset new and increased costs. So, it’s especially important to maintain a clear and accurate picture of your profitability at all times. It’s likely you’re managing your business to some degree with technology. But, have you factored in job costing? If you’re not actively allocating costs down the job level, you’re missing the “meat and potatoes” of your profitability opportunities. 

It should be a given that if a particular revenue or expense exists in accordance with a contract, then it should be included in your job costing. But the real challenge is getting accurate numbers and recording them down to the job level. Typically, costs you should be allocating per job include labor costs, payroll taxes, workers compensation, general liability insurance, umbrella insurance, supplies, materials, fuel, vehicles and more.

The solution: gaining visibility into profits at the job level. 

Job costing strategies aren’t one-size-fits all. To maximize your competitive advantage, security companies should be leveraging job costing opportunities that look at costs in detail at the job level. Oftentimes, it can look like a job is profitable when seen from the 1,000-foot view. But when you dig into some of the expenses coded to overhead jobs, you find some of those larger, true cost overhead expenses are what make up a good chunk of costs at the job level, too. 

For example, worker’s compensation typically isn’t expensed down to the job level because it’s hard to manage. Depending on the specific services you provide, worker’s compensation could be more costly than specific payroll taxes. So, if you aren’t accounting a portion of worker’s compensation expenses as a cost per job, you aren’t getting an accurate picture at what it took from your expense budget to service that contract.

As a security industry leader, it’s important to properly allocate your true job costs. Here are some tips to keep in mind when exploring job costing opportunities: 

  1. Make sure you have a way for every financial transaction processed to include a job number. Including everything from payroll, to accounts receivable, accounts payable and adjusted journal entries — no detail is too small. 
  2. Look for additional features that allow for payroll taxes and miscellaneous insurance costs to be taken down to the job level, based on payroll dollars at that specific job. 
  3. Establish review processes to compare data collected to budgets for an accurate gauge of profitability. 

Once you complete these tasks, you should be holding on to some solid, irrefutable data with insights into your true job costs. And as you evaluate contracts or bid for future work, you can use this as solid testimony backing up any negotiations or changes in SLAs. And, keep in mind job costing is an ongoing process. A job that’s profitable at one time could become unprofitable as SLAs change over time, or supply costs fluctuate. 

So, are you job costing? Are you doing so correctly? Do you analyze the data and put it in action? As a security company, you need to be asking yourself these important meat and potato questions to know whether you have a clear view of your profitability.

 

Brandy Tomasek joined TEAM Software in 2016. She’s a part of the Professional Services team, working as a Sr. Business Consultant. Prior to joining TEAM, Brandy earned a Bachelor’s degree in Management and Marketing, as well as her MBA in Organizational Leadership. Brandy’s professional experience spans a range of disciplines from management and leadership, to training and accounting. In her free time, Brandy enjoys spending time with her family, training their puppy and DIY everything.

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Aley Moyer

The Californian 2021 Q4 – STRATEGIES TO REDUCE THE RISK OF WORKPLACE VIOLENCE

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STRATEGIES TO REDUCE THE RISK OF WORKPLACE VIOLENCE

Debbie Howlett, TrackTik, Network Partner

Since the start of the pandemic in March 2020, many previously low-risk workplaces are now at a higher risk for workplace violence. Many people frustrated by mask mandates, social distancing restrictions, and endless line-ups have resulted in a population with hair-trigger tempers. Some workplaces are recognized to be at significantly greater risk than others, like healthcare facilities. An emergency room in San Leandro, California, recently went into lockdown when a visitor, frustrated by Covid-19 restrictions, threatened to bring a gun into the hospital. 

However, workplace violence in healthcare was already on the rise pre-pandemic. The U.S. Department of Labor Statistics reports that in 2019, 47% of emergency department physicians reported being physically assaulted during work, and 71% of nurses reported experiencing sexual harassment at the hands of patients. This year, according to the National Nurses Union (NNU), a recent nationwide survey of more than 5,000 registered nurses, 31% of hospital RNs said that they faced a small or significant increase in workplace violence, up from 22 percent since March 2021.

An unfortunate silver lining to the pandemic has allowed hospitals to review their safety protocols. Across the U.S., hospitals and other facilities have installed more security cameras and video surveillance, limited entry points to monitor visitors more closely, and hired additional security officers. They have also provided de-escalating training, equipped staff with Bluetooth-enabled panic buttons, and in some cases, brought in K9 patrols. 

Security Officers at Risk

At present, the California Occupational Safety and Health Administration (Cal/OSHA) only has rules that regulate workplace violence in the healthcare industry. Still, there are no regulations covering workplace violence in other sectors. The Cal/OSHA Guidelines for Workplace Security have been in circulation since March 1995, so workplace violence has been a concern for a long time in California. The guidelines include specific factors that may put employers at a higher risk for violence, many of which are characteristic of the role security officers play in the workplace, such as:

  • Lone workers
  • Security officers transporting money between financial institutions
  • Armed security officers at cannabis dispensaries and plants
  • Safety ambassadors at healthcare facilities
  • Public safety officers in communities and cities
  • Public-facing security officers enforcing mask mandates and social distancing rules

Identifying Workplace Security Issues 

Many workplaces are at risk for workplace violence, but specific workplaces are significantly more at risk than others. Therefore, every employer should perform an initial assessment to identify workplace security issues. The security assessment should begin with a physical tour of the workplace in question, a review of security procedures already in place to identify any potential vulnerabilities. 

As you tour the workplace, consider the following ten questions: 

  • Where could someone easily access the building? 
  • Are potential entrances secured? 
  • Is there any form of access control upon entering the building? Is identification required? 
  • What is the procedure for visitors to the building? 
  • Have potential escape routes been explored in the event of a threat? 
  • Is the building a shared space? Do other tenants share your security concerns? 
  • Are there blind corners, hedges, or unlit areas where someone might hide? 
  • Are all the gates and fences surrounding the building secure with no gaps? 
  • Is the parking area well lit and maintained? 
  • Are doors left open and unlocked? 

Crafting the Workplace Security Plan

Once the workplace tour is complete, create a workplace security plan using the information you collected. Unfortunately, there is no one-size-fits-all security plan that employers can download and implement. Every employer needs a plan tailored to its particular environment and takes company culture, physical layout, resources, and management styles into account. 

Craft your security plan with the following suggestions in mind. 

Secure your workplace – Consider using physical barriers likes fences and gates, access control systems, door locks, and video surveillance. 

Create an access control plan – Use keys that cannot be replicated, electronic access cards, or a biometric option like fingerprint, palm print, or iris scanning. Provide badges for visitors. 

Contract security officers – Hire security officers to perform foot or mobile patrols and checkpoint tours. Officers can also assist with visitor screening and monitoring access control systems. 

Position security cameras where you need them – Security surveillance is key to monitoring who enters and exits the building at all times. 

Provide good lighting – Make sure that employee entrances and exits are located in well-lit areas, and interiors, corridors, stairwells, and parking lots are illuminated. 

Consider using alarms – Ensure that entrances and exits are equipped with alarm systems that warn employees if unauthorized individuals try to enter the building. 

Create a map of the building – Identify entrances and exits, stairwells, doors, and security cameras. It will help you determine where to deploy extra security, video surveillance, and extra lighting. 

Review and revise your security plan – The review should ensure that doors are closed or locked, the locks are working, and security officers properly screen visitors. 

Redesigning aspects of your workplace can reduce the likelihood of violence and keep your security officers and the people and facilities or institutions they protect secure. Consider revisiting your security plan today with some of these suggestions.

Debbie Howlett
TrackTik

Debbie is an experienced writer with a demonstrated history of working in the security industry. She is based in Montreal, Canada, with TrackTik—a dynamic and cutting-edge tech company that sells cloud-based security workforce management software.

debbie.howlett@tracktik.com
Twitter: @TrackTik 

 

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Kate

The Californian 2021 Q3 – IMPROVING CONTRACT MANAGEMENT FOR BETTER BUSINESS STRATEGY

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IMPROVING CONTRACT MANAGEMENT FOR BETTER BUSINESS STRATEGY

Brandy Tomasek, TEAM Software, CALSAGA Network Partner

 

As a leader of a security company, managing your contract updates can become an incredibly daunting task, especially given today’s ever-changing environment. Not only are customers requesting more from your business in terms of the services you provide, but you’re also being required to monitor your service delivery to meet new and specific compliance standards. As contract management becomes more complicated, you’re simultaneously being asked to provide more visibility to your customers through business data and proof of service — a process multiplied by each dispersed job site spelled out in your contract agreements. 

As contract management evolves, one thing is clear. Your business strategy needs to evolve as well, namely in finding a way to leverage your technology so it’s working for you, not against you. Managing a contract across multiple platforms — or worse, through only paper-and-pencil processes — is tricky, messy and ultimately a drain on your resources. Even with regular communication to and from the field, you’re more likely to end up with answers that don’t line up across systems, discrepancies in how information is processed and assigned, and a loss of customer business. It’s important to use technology specifically designed for the needs of the security industry to counteract these dangers and better manage your contracts. 

Trainings, Licensures and Breaks

With your contracts, it’s important to make sure you have officers with the correct qualifications fulfilling the requirements of any given job, and that you’re providing fair and equitable hours whenever possible. Employees need to be onboarded thoroughly and appropriately with ongoing training and licensure requirements accurately tracked, so when a job does require specific certifications, you can fill those service-level agreement needs appropriately. When your officers are on duty, a holistic workforce management solution can monitor time worked against necessary compliance regulations, ensuring you accurately track time, including meal or rest breaks. This is especially important for instances when meal or rest breaks could theoretically be attributed to a different week due to how shift schedules fall, mistakenly resulting in more overtime expenses on your payroll. Without a software solution working to provide accurately, timely data to produce outputs, you’re relying on human subjectivity to manage minute details where error can result in headaches and liabilities for your company to handle down the road.  

Scheduling and Your Bottom Line

As a service contractor, labor costs are one of the biggest expenses narrowing your profit margins. Seemingly harmless scheduling gaffes, like an officer coming in early or staying late, can quickly add up in expenses your company is on the hook for but that you ultimately can’t bill to your customer. By eliminating manual processes from the scheduling equation, you can more accurately manage shift punches and rule out any de minimis time by setting up configurable default time and attendance settings. From a contract standpoint, this helps with cost attribution, while minimizing any back-office reconciliation work before payroll is due. Plus, a tool that monitors open posts, offers positions to employees and schedules based on compliance requirements (guard licensing, driver’s license, weapons permit, CPR training, etc.) ensures you’re still able to identify gaps in coverage, prevent pre-scheduled overtime and receive notifications if an officer doesn’t clock in for a shift. 

Communicating to Field-Based Officers

Manual back-and-forth communications can get the job done, but a software solution that provides communication to and from the field helps provide visibility to your security officers, supervisors and management. System notifications help identify things like gaps in coverage for contracts and better manage compliance requirements via messaging solutions. Plus, the ability to notify employees of open posts via push notification and SMS texting helps shorten the lead time of filling gaps in coverage and ensuring contract management. By tracking all communications within one system, executives have peace of mind — and a paper trail to refer to when reviewing contract fulfillment or queries from customers. 

The possibilities of software built specifically for the needs of the security industry are endless. Take advantage of tools that work for you to help manage your contracts. 

 

Brandy Tomasek joined TEAM Software in 2016. She’s a part of the Professional Services team, working as a Sr. Business Consultant. Prior to joining TEAM, Brandy earned a Bachelor’s degree in Management and Marketing, as well as her MBA in Organizational Leadership. Brandy’s professional experience spans a range of disciplines from management and leadership, to training and accounting. In her free time, Brandy enjoys spending time with her family, training their puppy and DIY everything.

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Kate

The Californian 2021 Q3 – HIRING PROBLEMS & YOUR SOLUTIONS

HIRING PROBLEMS & YOUR SOLUTIONS

Armand Adkins, Guardslink

One of the most recurring problems in the security industry is finding and hiring qualified security officers.  If there was a show of hands, I don’t think many members of CALSAGA would say hiring, when and how they want, is easy.  It just isn’t. Building the team of security officers your company needs will require creativity as well as a rigorous process to search and employ the right people to service your existing clients and move your company forward.

We need to recognize that finding the right candidates is even harder for security companies than in other industries as those we select are expected to protect lives and properties. Qualities such as experience, fitness, and appropriate training are only a few of the things security companies look for from their pool of candidates. While there are endless in-house problems that get in the way of an effective hiring process (administrative time commitment, costs, etc.), the good news is, as hard as these problems might seem, there are practical ways to effectively tackle them.

Shortage of Candidates

Always surprising – even though the physical security industry is a long standing and established sector of our economy, the Service Employees International Union still records an annual turnover rate of 100%-300% for security officers. This means that security officers leave a job within 1 year and sometimes within their first four months in a new company. This makes the market very competitive for companies looking to hire security officers, with the demand typically higher than the available talents.

There have historically been three proven ways to get candidates, and now there’s a fourth new approach.

 

Method One: Get your job openings in front of as many potential candidates as possible to raise the visibility of your hiring needs.

This can take the form of job boards such as Indeed, Ziprecruiter, etc that will post your positions on their websites for a fee since they are able to draw a significant number of job seekers looking for work.  The second, is a job ad in a physical or online circulars.  Examples of these sorts of circulars are Craigslist or PennySaver USA.  With job boards and circulars, you cast the net as wide as possible but you can never be sure of the response rate.

If your company takes the traditional route of job boards / employment ads, do you have a firm sense of the amount of money involved?  Are you factoring the actual costs of posting, boosting, as well as the labor cost of resume reviewing, candidate communications, interviews, negotiation, and sometimes the added need to train, live scan coordinate and apply for a guard card license. All steps involve time, which means money.

 

Method Two:  Those already in your circle of influence.  This method includes adding career / job openings language or a dedicated page on your website for those already familiar with your company and coming to your site.  In addition to just job openings, you may want to consider adding testimonials / testimonial videos from your existing security officers to share their positive views of working for your company. Your sphere of influence also includes asking your existing employees for referrals out of the goodness of their hearts or for an incentive.  This is a solid approach to take with the exception that it limits the reach of your potential pool.

While this technique may seem like a bargain, you will most likely face actual costs in terms of referral bonuses as well as the unseen cost of limiting your reach to find qualified candidates if you are looking to grow your business.

 

Method Three: Traditional recruiters. Going with a standard recruiting firm is definitely an option if your company is in an immediate need for a position to be filled and Method One and Method Two have not panned out.

Using traditional recruiters really should be seen as a last resort as they greatly increase your cost to hire in terms of potentially upfront and certainly hourly rate premiums that you would be contractually obligated for.  However, in a pitch, they exist.

 

New Method Four: There exists a brand new model for flat fee placement providers.  GuardsLink is an example of one such service provider that has recently expanded its offering beyond online training and tracking to include hiring assistance.  Qualified candidates that already have their unarmed or armed guard licenses can be presented to your company for interviews, and if you hire one or more of the candidates, you pay a relatively small flat fee per hire.

There is a cost per hire, but it is simple and transparent – no unknown return for money spent like in Method One, no limitation of your network of people familiar with your employees and company like in Method Two, and no expensive hourly rate premium like with traditional recruiters.  However, your company would need to be willing to try new business providers, and not all companies are open to expanding options from what they already do.

Each of these four methods can find you candidates, it is simply up to you if you choose one or more of the methods to implement in order to improve your odds.

Making the offer

It is one thing to have found the perfect fit for the job, it is a different task to get to a mutually agreeable “yes,” resulting in potential time wasted on negotiations.

To solve this specific hiring problem, the wage range should be included in your Employment Postings. This will streamline the candidate pool applying to fit your budget as those that seek different rates of pay will self-select and not apply.  This is a huge time saving as you and your staff won’t need to spend your time reviewing resumes, contacting to coordinate interviews, interviewing and discussing the position with someone who will not be accepting the job for monetary reasons.

A completely different approach that some employers have been known to use is to let each candidate freely lead the negotiation phase. This will give you an insight into each candidate’s expectations. If there are unrealistic wage expectations for the position, this may serve as a warning flag that despite ultimately accepting the position, this new hire may become part of the turnover statistic and you enter into the employment relationship with eyes open.

Not enough time to make decisions

No good hiring process is done in a rush. Adequate time is needed. To tackle the problem of time, ensure that you have a good work policy that allows your staff to inform you ahead of resignation. This will give those involved in searching for new hires ample time to run the hiring process. In urgent situations, even a short notice or resignation will give you the breathing room to temporarily cover work shifts with your existing employees.

Side note, the company culture that encourages some amount of resignation notice is a self-fulfilling prophecy.  If you honor resignation periods, employees are more likely to give you sufficient resignation notice.  However, if you accelerate the last day of a security officer who gives advance notice of resignation, you are setting an unspoken company standard and few employees in the future will provide the same resignation notice for fear of impacting their final checks.  As CALSAGA is made up of mainly fellow employers, it is a hard decision whether to honor or not honor the resignation notice period, and no one can tell you the right balance, but you.

 

Also on the subject of time to vet candidates, it may make sense to have a process in place to be continuously searching for new employees, whether through an evergreen job posting, a referral bonus program, or an ongoing relationship with a flat fee placement provider.  If you are regularly searching, the odds are in your company’s favor of finding a qualified security officer sooner rather than later.

 

Making the final decision is hard

For security companies with great visibility, an extensive job posting strategy or a flat fee placement structure with a trusted organization like GuardsLink, the problem might come down to making the final decision to pick the perfect candidate.

Tools may make the difference in viewing candidates as objectively as possible to help make the right choice in a way that can be referred to later (for runner-up candidates if your top pick doesn’t join your team), and provide a process to try to eliminate any unconscious bias or hiring disorganization.

A classic tool that most are familiar with and capable of using are our old friends, Microsoft Excel or Google Sheets.  A well thought through spreadsheet, with columns that help sort the pros and cons of each candidate with added notes can give you the one page comparison needed to drill down on a ranking order of  candidates you wish to make an offer to and hire.

In addition to spreadsheets, you can also reach final decisions with the use of paid and free online tools that sort and select candidates. These are easy-to-use soft automation tools that work by helping companies to sort applications according to their preferences and instructions. Most human resource platforms will contain or be able to connect to such tools.

 

Conclusion

At the end of the day, we can all agree that there is no one silver bullet to solve all the problems and costs associated with the hiring process.

The goal of this article is to shake your organization out of its complacency and share the hurdles, as well as opportunities available to your company to try new approaches for finding your next hire.  If there is one or more of the four methods discussed above that your company has not already explored, give them a try – whether it’s employee testimonials on your website, new places to post jobs, or reaching out to a flat fee placement service like GuardsLink. The hiring of security officers is difficult enough without limiting your avenue of potential candidates.  Remember, without a pipeline of employees, you not only risk not being able to service the clients you already have but artificially limit your company’s ability to expand.

Much success, and good hiring!

 

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Kate

The Californian 2021 Q3 – LEGISLATIVE UPDATE

LEGISLATIVE UPDATE

Kate Wallace, CALSAGA Association Manager

As we reported to you earlier this year, Assemblymember Chris Holden introduced Assembly Bill 229 which would require the development of Use of Force curriculum for the private security industry. Among other topics the training would include active shooter situations; implicit and explicit bias and cultural competency; mental health and policies.

The CALSAGA Executive Committee along with our lobbyist Kelly Jensen have been working with Assemblymember Holden’s office, the Committee Consultant for the Senate Business, Professions and Economic Development Committee and Chief Andres of the Bureau of Security & Investigative Services on the text and ramifications of the bill. CALSAGA President David Chandler has testified before Assembly and Senate committees regarding the bill.

The current draft of the bill would remove Weapons of Mass Destruction from Powers to Arrest and replace it with Use of Force. Weapons of Mass Destruction will become an elective option.  It would require the initial guard card training to be administered in a traditional classroom setting with a physical instructor utilizing “hands-on training.” Originally the legislation would have increased the initial training requirement from 8 hours to 10 hours. CALSAGA addressed this with Assemblymember Holden and are glad to report that he is agreeable to keeping the initial training as an 8 hour course.

Proposed legislation would also increase requirements for reporting altercations. Currently all physical interactions involving a security officer must be reported to the BSIS. If passed, this legislation would require that any altercation be reported to the BSIS. This would include verbal altercations and unwanted touches such as common instances of gently touching an individual’s shoulder to guide them out of a building, officers restraining someone in a hospital setting, etc.

Last Tuesday David Chandler testified before the Senate Business, Professions and Economic Development Committee in opposition to the bill as currently written. There are portions of the legislation to which the association objects particularly the barrier to employment created by the increased training requirements and the lack of provisions for administering training in the event of a future pandemic.

During committee session this week, Assemblymember Holden stated, “I have committed to CALSAGA that I will work with them to find an appropriate balance between traditional classroom and their suggestion of web-based platform training.”

CALSAGA will continue to keep you updated regarding AB 229. Should this legislation pass, new requirements would not take effect until 2022.

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Aley Moyer

The Californian 2021 Q3 – HIRING CHALLENGES CONTINUE

HIRING CHALLENGES CONTINUE

Jeff Davis, TEAM Software, CALSAGA Network Partner

Every market seems to be haywire right now. Low interest rates, high building costs and excess disposable income has led to unprecedented demand and price increases in the housing market. The stock market has also been a rocket since hitting lows at the beginning of the pandemic. So, why should we expect anything less from the security labor market?  

Let’s go ahead and address the 800-pound gorilla in the room: security firms are not getting enough applicants. While pundits debate the reasons for the drop in applicants, we can assume the answer is likely due to multiple factors affecting job seekers. Before we look at the possible causes, let’s take a look at recent trends in hiring and applicants. 

Hiring Trends

Hiring has steadily grown week-by-week in 2021, with the most new hires coming in late June. Overall, hiring for April 2021 was up 62% year over year. Demand is strong for contract security services. As the world reopens, it makes sense that demand for security services would increase.  

Applicant Volume

Applicant volume has not followed the same path as hiring. Where hiring has steadily built each week, applicant volume started high, dipped in the spring, and has somewhat leveled off to first quarter (2021) numbers. This presented a very challenging spring when trying to fill security positions, as well as in other industries, as new applicants were hard to find. 

Key Factors

Steady hiring with lower and inconsistent applications makes for a difficult hiring environment. Recruiters are in a fight against the lingering effects of the pandemic, state and local policies, and outside industries to lure employees back. The most discussed (and politically polarizing) factors right now are unemployment benefits and specifically the additional $300 federal benefit. California is allowing the full benefit to be paid through September as reported by Zip Recruiter:  

“The maximum unemployment benefit available to individuals in California is $750 a week, or about $19 per hour, through September 6, 2021. After that, the maximum weekly benefit for individuals is $450 a week, or about $11 per hour.”

Using Indeed’s salary estimator tool, the average hourly base pay for a security guard in California is $15.98. Based on the numbers alone, luring guards on unemployment back in the workforce is difficult. Many states are offering bonuses for returning to work, but to date, California has not joined the trend.

Other factors such as child care and fear of COVID-19 variant strains are also keeping some at home, but the biggest trend may be a shift in the workforce itself. A recent ZipRecruiter survey found 70% of job seekers who last worked in the leisure and hospitality industry say they’re now looking for work in a different industry. This isn’t specific to contract security, but if the hospitality industry is having this type of movement, it’s logical to hypothesize much of the security employee base may be looking to switch industries as well.  

Moving Forward

One side effect to the labor market is classic supply and demand: rising job board advertising costs. Due to the lack of job seekers, employers have sponsored more job listings on job boards, leading to an all-out bidding war. Where organic (free) postings used to get visibility on the first page of a job board, they’re now buried on the third and fourth page behind the high volume of sponsored advertisements.  With placements coming at a premium, companies have had to aggressively increase their job board spending budget simply to remain visible. 

With rising labor costs, increased unbillable overtime and slimmer margins, how do we find employees to fill the demand? While there may not be a magic bullet, there are tactics you can implement.

  • First — build a solid employee referral program and actively promote it. Your best future employees are referred by current employees. 
  • Second — focus on retention of current employees. The cost to acquire and train a new employee is significant and refocusing those funds into retention may be valuable. 
  • Third — look to other industries. When unemployment was high, hiring could be selective and managers could pick and choose to only interview candidates with experience. Now may be the time to explore potential hires with different backgrounds. I hear the workers from the leisure and hospitality industry may be looking for a change.

TEAM Software is dedicated to ensuring our software solutions meet the ever-changing needs of our customers. We’re also continually working to bring you relevant content to help you manage your business better by taking advantage of programs like WOTC. While we’re committed to keeping you informed, it’s important to do your own research, and consult your own legal and tax advisors when necessary, too. For more information on the WOTC tax credit, visit the United States Department of Labor WOTC page.

Jeff Davis was president of Kwantek, a recruiting and onboarding software provider acquired by TEAM Software, the leading provider of integrated financial, operations and workforce management software for cleaning and security contractors, in 2020. Since joining TEAM, Jeff is the VP of Strategic Growth North America, acting as a subject matter expert and thought leader for TEAM in the security and cleaning industries and assisting with global sales and marketing initiatives. For the last 20 years, Jeff has focused on technology, working in sales and marketing to executive leadership, with four years specializing in human resources technology. He has an MBA focusing on Information Systems from Tennessee Tech and a Bachelor’s degree in Marketing from the University of Louisville.

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Aley Moyer

The Californian 2021 Q3 – THE STAFFING DROUGHT

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THE STAFFING DROUGHT

Tony Unfried, CSA360

We have a new drought among the security industry… It is a staffing drought. Finding new staff has been harder than ever. According to LinkedIn there are over 53,000 jobs available in the US. For various (some valid) reasons, not many people are eager to return to work. Lowering your turnover and improving retention is more important now than ever. Here is how you can help solve staffing gaps.

Art of Incentives
People are competitive by nature and nothing like a friendly competition to motivate your team. Using the art of incentives can be one of the best kept secret methods to encourage your team. This can be your secret weapon to keep your security team motivated. Perhaps finding a good scheduling software that can track this is a good idea.

Transparency
Having transparency within your staff is easier said than done. From knowing the availability of your staff to how they are performing can be difficult. It is a definite must. While having fun, positive incentives are great. It has been proven that people perform better when they know they are being watched and critiqued based on their work performance. Reward the employees who are always on time by giving them the better shifts or their preferred shift or the best positions. While you can keep track of this with a spreadsheet that can become a bit tedious, it is recommended you read into security software which can automate this process.

HR Software
It is nearly impossible to know everyone on your staff’s schedule. You’re only human after all. One thing recommended to help you be on top of your staff is investing in guard scheduling software. It can allow your employees to input their availability. Scheduling software can offer you valuable insights that will help you keep track of who is on time and who is making all the guard tour checkpoints. This can help increase employee transparency.

Keeping your staff engaged and motivated can be easier said than done but make sure you’re setting clear goals and expectations. Keeping things transparent within your staff. Once goals are met give a reward. This will help keep your security staff motivated and help solve staffing gaps.

Tony Unfried, CEO of CSA360, holds a master’s degree in Public Affairs and Criminal Justice from Indiana University, where he graduated with honors. While enrolled in his master’s program, Tony worked for The TJX Companies, Inc., leading the region in loss prevention and moving the company toward technology use in Security. Tony went on to join the most significant security company in Indiana, managing more than 500 employees and 50 sites, including the Indiana Convention Center, Bankers Life Fieldhouse, and Ruoff Home Mortgage Music Center. Seeing a noticeable gap in technology use in the physical security sector, Tony created his first security software application, launched at the Super Bowl in 2012, and recognized twice for Excellence in Mobile Technology by Techpoint. Tony has also spoken on Tech in Physical Security on panels with ASIS and IAVM.

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Aley Moyer

The Californian 2021 Q3 – CALIFORNIA SUPREME COURT RULES CALCULATION OF PREMIUM PAY MUST INCLUDE NON-DISCRETIONARY PAY

CALIFORNIA SUPREME COURT RULES CALCULATION OF PREMIUM PAY MUST INCLUDE NON-DISCRETIONARY PAY

Saba Zafar, Esq. and Jaimee K. Wellerstein, Esq. Bradley & Gmelich, CALSAGA Legal Advisor

On July 15, 2021, the California Supreme Court held that if an employer fails to provide a legally compliant meal period or rest break to an employee, the wage premium owed to the employee must be paid at the employee’s “regular rate of compensation,” which includes not just hourly wages but all nondiscretionary payments for work performed by the employee. The Court also held that its decision will be retroactive. 

The Case

Jessica Ferra worked as an hourly bartender for Loews Hollywood Hotel. She received hourly wages plus quarterly nondiscretionary incentive payments. If an hourly employee was not provided a compliant meal or rest break, Loews paid the employee an hour of pay at the employee’s base hourly rate. Loews argued this was the “regular rate of compensation” mandated by Labor Code section 226.7(c).

In 2015, Ferra filed a class action lawsuit, arguing that nondiscretionary incentive payments should be factored into the regular rate of compensation for purposes of meal and rest break premiums. The trial court and Court of Appeal agreed with Loews that the “regular rate of compensation” was not synonymous with the “regular rate of pay” used in Labor Code section 510(a) governing overtime. Ferra appealed to the Supreme Court, and the instant ruling followed.

The Supreme Court discussed the history and evolution of the wage orders as well as Labor Code section 226.7 extensively as the basis for its holding. The Court noted that neither the Labor Code nor Wage Order No. 5-2001 define the terms and the words could reasonably be construed to mean hourly wages or wages plus nondiscretionary payments as is the case under Labor Code section 510(a) for calculation over the regular rate of pay for purposes of overtime.

The Supreme Court also relied on the courts’ and DLSE’s understanding of two different terms, that “regular rate” under the Federal Labor Standards Act (“FLSA”) and “regular rate of pay” in Labor Code section 510 have the same meaning. “Regular rate” under the FLSA for purposes of overtime includes “all remuneration for employment paid to, or on behalf of the employee” including nondiscretionary payments. Thus using the word “compensation” in Labor Code section 226.7 as opposed to “pay” in Labor Code section 510 does not necessarily mean the terms have different meanings.

The Supreme Court also rejected several federal district court opinions holding that the regular rate of compensation only means an employee’s hourly rate. The Supreme Court observed that such an interpretation would put an employee who received only a piece rate or both a piece rate and an hourly rate of pay as compensation at a disadvantage as the nondiscretionary payments would not be counted towards calculating their premium pay.

Based on its analysis and legislative history, the Supreme Court held the phrase “regular rate of compensation” in section 226.7(c) has the same meaning as “regular rate of pay” in section 510(a) and encompasses not only hourly wages but all nondiscretionary payments for work performed by the employee.”

As the final blow to employers, the Supreme Court rejected Loew’s request to apply the decision prospectively. Thus, the decision will be applied retrospectively.

Employer Takeaway:

Employers should closely examine their policies and practices with regard to meal and rest periods. Employers must demonstrate constant vigilance in complying with California’s rigid wage and hour laws, including proper calculation and payment of the one-hour premium when violations do occur.

As the decision is retroactive, employers who have paid premium pay should analyze their calculations to ensure that it includes nondiscretionary pay.

If you have any questions about how this decision may impact your obligations, or need assistance with regards to calculating premium pay, please feel free to contact Bradley & Gmelich LLP. We are here to help.

 

Saba Zafar, Esq. is Special Counsel in Bradley & Gmelich LLP’s Employment Law Department. Saba has over a decade of experience as an attorney, primarily in employment law. Saba focuses her practice of providing strategic advice and counsel in all aspects of employment law and workplace matters, including drafting and implementation of HR policies and procedures, Employment Handbooks, providing advice to clients on personnel issues as well as general business matters. 

Prior to joining the firm, Saba was a Senior Counsel providing advice and counsel to mid-sized to large businesses on employment law compliance and day-to-day employment issues, including implementing policies and procedures, employee classifications, employment separations, managing and disciplining employees, and COVID-19 rules and regulations. Saba also handled a wide variety of employment matters in state and federal court, including cases involving wrongful termination, discrimination, and wage related cases. 

In her spare time, Saba has volunteered as a Mediator for the Department of Consumer Affairs and the Orange County Human Resources Department. She was also a Volunteer Tutor for Schools on Wheels, tutoring elementary school students on skid row in Los Angeles. Prior to practicing law, Saba was a Judicial Extern for California Court of Appeal, Second Appellate District.  

In her free time, Saba enjoys embarking on culinary adventures and catching up on new television shows. szafar@bglawyers.com

Jaimee K. Wellerstein, Esq. 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-Hubbell, the highest peer rating available. jwellerstein@bglawyers.com.

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Aley Moyer

The Californian 2021 Q3 – THE HEAT IS ON! AGAIN – HEAT ILLNESS PREVENTION

THE HEAT IS ON! AGAIN – HEAT ILLNESS PREVENTION

Shaun Kelly, Tolman & Wiker, Preferred Broker

With the weather so hot, I thought it would be a good reminder to the members on the Heat Illness Prevention Plan requirements. CALSAGA has previously published articles about heat injury illness prevention yet many members do not have a plan implemented.

With the change in seasons comes the warmer weather and it is imperative (and required by Cal/OSHA!) that all employers train their supervisors and employees on heat illness prevention. The safety of your employees is the responsibility of the employer and if an unfortunate event does occur, Cal/OSHA may be investigating the event. If so, they will be asking if you have your Heat Illness Prevention Program in place. The investigation will include verification that you have provided training to your supervisors and employees. 

A Cal/OSHA study identified the key role that employers play in preventing worker fatalities due to heat illness. The findings highlighted the value of training supervisors so that they can make the fullest use of their power to control safety on the job. 

California Code of Regulations, Title 8, Section 3395 Heat Illness Prevention requires all employers to have a Heat Illness Prevention Program which includes the following: 

Provide fresh/potable drinking water 
Employers must provide employees with fresh, pure, and suitably cool water, free of charge. Enough water must be provided for each employee to drink at least one quart, or four 8-ounce glasses, per hour and the water must be located as close as practicable to the work area. Employers are also required to encourage employees to drink water frequently 

Provide access to shade 
When temperatures exceed 80 degrees, employees must be provided shade at all times in an area that is ventilated, cooled, or open to air and that is as close as practicable to the work area. There must be sufficient space provided in the shade to accommodate all employees taking rest. When temperatures do not exceed 80 degrees, employees must be provided timely access to shade upon request. Employees should be allowed and encouraged to take preventative cool-down rest as needed, for at least 5 minutes per rest needed. 

Have high heat procedures in place 
High heat procedures are required of agricultural employers when temperatures exceed 95 degrees. The procedures must provide for the maintenance of effective communication with supervisors at all times, observance of employees for symptoms of heat illness, procedures for calling for emergency medical services, reminders for employees to drink water, pre-shift meetings to review heat procedures and the encouragement of employees to drink plenty of water and take preventative cool-down rest as needed.

Agricultural employers must additionally ensure employees take, at a minimum, one 10-minute preventative cool-down rest period every two hours in periods of high heat. 

Allow for acclimatization 
New employees or those newly assigned to a high heat area must be closely observed for the first 14 days of their assignment. All employees must be observed for signs of heat illness during heat waves. A “heat wave” is any day where the temperature predicted is at least 80 degrees and/or 10 degrees higher than the average high daily temperature the preceding 5 days. 

Train all employees regarding heat illness prevention Employees must be trained regarding the risk factors of heat illness and the employers’ procedures and obligations for complying with the Cal/OSHA requirements for heat illness prevention. Supervisors must additionally be trained regarding their obligations under the heat illness prevention plan and how to monitor weather reports and how to respond to heat warnings. 

Have emergency response procedures 
Employers must have sufficient emergency response procedures to ensure employees exhibiting signs of heat illness are monitored and emergency medical services are called if necessary. 

Have a Heat Illness Prevention Plan 
Employers must have a written heat illness prevention plan that includes, at a minimum, the procedures for access to shade and water, high heat procedures, emergency response procedures, and acclimatization methods and procedures.

Download a sample Heat Illness Prevention Plan

With all of the constant changes and updates required by CalOSHA compliance, if you do not have a dedicated Safety Manager, Tolman & Wiker highly recommends hiring a Safety Consultant to make it easier on you to stay current. Tolman & Wiker has worked with EEAP/Got Safety for many years to customize Safety Plans and keep clients compliant.  At this time, EEAP/Got Safety has partnered with Tolman & Wiker to provide CALSAGA clients with a reduced rate which is very reasonable. Please let them know that Tolman & Wiker referred you and they will take care of you.

EEAP/Got Safety
Rick Rohmann, Operations Manager
Cell: 661-433-7063 – (Preferred Contact Method)
Office: 800-734-3574 Ext #102
Direct & Fax: 435-708-0014
www.gotsafety.com
Be safe and call Tolman & Wiker if you need assistance!

Shaun Kelly, Sr. VP, Risk Advisor
Tolman & Wiker Insurance Services
(661) 616-4712

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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Aley Moyer

The Californian 2021 Q2 – CALIFORNIA RE-ENACTS (AND EXPANDS) MANDATORY COVID-19 SUPPLEMENTAL PAID SICK LEAVE

CALIFORNIA RE-ENACTS (AND EXPANDS) MANDATORY COVID-19 SUPPLEMENTAL PAID SICK LEAVE

By Martin Vigodnier, Esq. and Jaimee K. Wellerstein, Esq., Bradley & Gmelich, CALSAGA Legal Advisor

On March 19, 2021, Governor Gavin Newsom signed SB 95 into law, once again providing COVID-19 related supplemental paid sick leave to California workers. Employers will recall that 2020 mandatory COVID-19 paid sick leave – both federal Families First Coronavirus Response Act (FFCRA) and California Supplemental Paid Sick Leave (SPSL) expired on December 31, 2020.

SB 95 now requires any California employer with more than 25 employees to provide SPSL for COVID-19 related reasons in addition to regular paid sick leave offered. The new law also authorizes SPSL for providers of in-home supportive services and waiver personal care services.

START DATE & RETROACTIVITY

The new law took effect on March 29, 2021 and remains in effect through September 30, 2021. However, SB 95 is retroactive to January 1, 2021. Thus, any leave granted since January 1st for any of the qualifying reasons (discussed below) would require reimbursement. 

QUALIFYING REASONS FOR LEAVE

The qualifying reasons for leave have been expanded for 2021. Employees who are unable to work or telework can use SPSL for the following reasons, which are more numerous than they were in 2020:

  1. Employee is subject to a quarantine or isolation period related to COVID-19 as defined by federal, state, or local orders or guidelines. 
  2. Employee is advised by a health care provider to self-quarantine due to concerns related to COVID-19. 
  3. Employee is attending an appointment to receive a COVID-19 vaccine. 
  4. Employee is experiencing symptoms related to a COVID-19 vaccine that prevent the employee from being able to work or telework. 
  5. Employee is experiencing COVID-19 symptoms and seeking a medical diagnosis. 
  6. Employee is caring for a family member who is subject to a quarantine or isolation order or guideline or who has been advised to self-quarantine by a health care provider due to concerns related to COVID-19. 
  7. Employee is caring for a child whose school or place of care is closed or otherwise unavailable for reasons related to COVID-19 on the premises. 

AMOUNT OF LEAVE AVAILABLE

  • Full-Time Employees: Employees receive 80 hours if either their employer considers them to work full time or, on average, they worked or were scheduled to work at least 40 hours per week in the two weeks preceding the leave. 
  • Part-Time Employees: Employees with a normal weekly schedule receive the total number of hours they are normally scheduled to work over two weeks. Employees who work a variable schedule and have worked six months or more will receive 14 times the average number of hours they worked each day in the six months preceding their leave date. (For example, the total number of hours worked in last six months divided by 182 days equals the daily hours; then multiply the daily hours by 14 for the total hours entitlement). If the employee worked only between 15 days and six months, the same calculation would be used, but over their entire period of employment. Employees who worked 14 days or fewer receive leave hours equal to their total number of hours worked. 

RATE OF PAY & CAP

The 2021 SPSL pay rate calculation mandates that non-exempt employees receive the highest of the following (subject to the cap, below): 

  • The employee’s regular rate of pay for the workweek in which the leave is taken; 
  • A rate calculated by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90 days of employment; or 
  • The state or local (whichever is applicable) minimum wage. 

Note that for exempt employees, SPSL is calculated in the same way that the employer calculates wages for other forms of paid leave.

The 2021 SPSL is capped. The most an employee can receive for 2021 SPSL is $511 per day or $5,110 in the aggregate.

CERTIFICATION OF LEAVE

An employee is entitled to SPSL immediately upon their oral or written request. Moreover, an employer cannot require medical certification in order to provide the paid leave. However, bear in mind that it may be reasonable in some circumstances to request documentation where the employer has information indicating that the employee is not requesting SPSL for a legitimate purpose.

NOTICE, POSTING & PAYSTUB REQUIREMENTS: 

A notice of employee SPSL rights must be posted at the workplace, or sent via email if employees work from home. A link to the notice required (available through the Labor Commissioner’s Office) is available here. 

Like in 2020, California requires information concerning employees’ SPSL benefits be available on employee paystubs. Importantly, the 2021 law requires that SPSL and non-COVID statutory paid sick leave be displayed separately.

For part-time, variable-scheduled employees, employers must calculate the initial amount of SPSL available as of the first printing of the paystubs and indicate “variable” next to the amount on the paystub. The employer would then do the actual calculation if/when the employee actually requests the leave.

Finally, any retroactive SPSL payment must be identified on an employee’s paystub for the pay period during which payment is made.

Have questions about 2021 Covid-19 Supplemental Paid Sick Leave or any other pressing employment law issues? Contact your attorneys at Bradley & Gmelich LLP. We are here to help.

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. The firm acts as general counsel for many security companies in California.    

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 Hubbell, the highest peer rating available. jwellerstein@bglawyers.com / 818-243-5200.

 

 

 

 

Martin P. Vigodnier, Esq. is a Senior Associate in Bradley & Gmelich LLP’s Employment Law Department.  Martin focuses his practice on labor and employment litigation, class actions, and Private Attorney General Act (PAGA) actions, including wage and hour claims, discrimination, leaves of absence, reasonable accommodation, defamation, trade secrets, retaliation, harassment, wrongful termination, breach of contract, and fraud.  Martin also drafts, in both English and Spanish, contracts, regulatory compliance materials, agreements, and policies such as anti-harassment, discrimination, and retaliation policies, OSHA safety policies, employee reimbursement policies, employee stock purchase plans, independent contractor agreements, arbitration agreements, settlement agreements, cross-purchase buy sell agreements, and employee handbooks.  

?Prior to joining the firm, Martin was President and Founder of his solo law practice handling various employment matters.  Prior to practicing law, he was an extern for the Equal Employment Opportunity Commission (EEOC) and awarded the prestigious Peggy Browning Fellowship to work for the Federal Labor Relations Authority (FLRA), assisting the Office of General Counsel analyze unfair labor practice charges against government agencies.   

Martin is a native Spanish speaker and writer, and a former amateur boxer. 

Education

  • B.A., University of California, Los Angeles (UCLA)
  • J.D., University of Illinois, College of Law 

Bar Admission

State Bar of California

 

 

 

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