WHY YOUR SECURITY COMPANY SHOULD BE TAKING ADVANTAGE OF WOTC FILING

Jeff Davis, TEAM Software, CALSAGA Network Partner

Understanding the Work Opportunity Tax Credit and how to apply it to your business could mean significant savings on your labor costs. 

When labor is your top expense, like it is in the contract security industry, anythisng you can do to control those that costs is going to have a positive impact on your bottom line. Even though your labor costs may increase, you can’t just increase prices for your customers when they can easily find another service provider willing to charge less. One way to help offset labor costs is through the Work Opportunity Tax Credit (WOTC) program.

WOTC is a U.S. federal tax credit designed to promote the hiring of individuals from certain groups who have faced significant barriers to employment. When an employer hires a qualifying employee who meets WOTC criteria, they can claim a federal tax credit against the employee’s paid wages. According to the Department of Labor, over two million WOTC certifications were issued in 2019.

While it may sound simple, there is a learning curve to understanding all the complexities of the program. Here is a quick overview to help you get started with WOTC.

Which of Your Hires are Eligible?

The first step to understanding WOTC is having a basic understanding of who’s eligible for the program. Under WOTC guidelines outlined by the IRS, qualified groups include:

  • Qualified veterans
  • Ex-felons
  • Qualified long-term unemployment recipients
  • Supplemental Nutrition Assistance Program (SNAP) recipients
  • Qualified IV-A recipients
  • Designated Community Residents (DCR)
  • Vocational Rehabilitation Referrals
  • Summer Youth Employees
  • Supplemental Security Income (SSI) recipients
  • Long-term family assistance recipients

Specifically looking at qualified veterans, that includes individuals who meet specific unemployment criteria including but not limited to being unemployed for at least four weeks prior to being hired;, being a service-connected disabled veteran; and being a member of a family who receives assistance under the Supplemental Nutrition Assistance Program (SNAP).

Potential Savings to Your Security Company

According to the Employment Development Department of California, depending on the target group eligibility of the person hired, wages and the number of hours worked, WOTC allows businesses to claim tax credits up to $9,600 of qualified wages per eligible employee, which can be deducted from taxable income. WOTC is especially beneficial for security contract companies due to the number of veterans who pursue a career in the security industry after they’re done serving in the military. As of 2020, over 1.5 million veterans live in California alone. WOTC is also particularly helpful for companies with high employee turnover and new hire rates. Because you can file a claim for any eligible new hire who works at least 120 hours, employers that are continually bringing on new employees can use WOTC to help offset onboarding and recruiting costs. 

How Do I Set Up WOTC Filing for My Company? 

In order to claim WOTC for eligible employees, you must file certification request applications with the state workforce agencies within 28 calendar days of the new hire’s start date. You can find specific submission instructions on California’s workforce agency website. Navigating the WOTC process, especially if you’ve never filed before, can seem daunting. It’s important to verify all steps of the process are followed correctly and to partner with companies that can simplify the process if you don’t have the ability to do it in-house. And, if you use a security industry-specific ERP as your one source of record, you already have all the information you need in one place.

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.

NEW FEDERAL RELIEF BILL LETS EMPLOYERS OFF THE HOOK: FFCRA COVID-19 PAID LEAVE OBLIGATIONS HAVE EXPIRED

Ki Lin Tay, Esq.and Jaimee K. Wellerstein, Esq., Bradley & Gmelich, CALSAGA Legal Advisor

The Families First Coronavirus Response Act of 2020 (FFCRA), the first ever paid leave of absence law to be enacted on a national level,  mandated that certain employers provide emergency paid sick leave and expanded paid family and medical leave to eligible employees experiencing COVID-19-related issues. The FFCRA was passed in March of 2020 in the face of the COVID-19 health crisis, and seemingly just as quickly as it was enacted, it has come to an end. 

On December 21, 2020, Congress opted not to extend FFCRA paid leave obligations beyond 2020, leaving the FFCRA to expire as planned on December 31. As a result, employers are no longer obligated to provide FFCRA paid leave to employees, despite the common belief that these entitlements would be extended into 2021, to maintain some level of paid leave benefit while the world continues to fight the COVID-19 pandemic. 

The subject of paid leave, however, was not entirely abandoned by the federal government. On December 27, 2020, the federal government signed its latest COVID-19 stimulus bill into law. The Consolidated Appropriations Act of 2021 allows employers – on a voluntary basis – to continue to provide paid leave entitlements through March 31, 2021 in exchange for a payroll tax credit.

With all of the ongoing changes in the COVID-19 legal landscape, what does this mean for employers?

FFCRA Paid Leave Obligations Expired on December 31, 2020, But Expanded Tax Credits are Available Through March 31, 2021

As of December 31, 2020, employers with fewer than 500 employees are no longer required to provide FFCRA COVID-19 paid leave benefits to employees. This includes both emergency paid sick leave (EPSL) and paid childcare leave under the Emergency Family and Medical Leave Expansion Act (EFMLEA). While employers have no further obligation to provide FFCRA benefits to employees, employers may choose to continue providing FFCRA paid leave benefits to eligible employees and will receive a payroll tax credit for such paid leave through March 31, 2021.

Importantly, while the Consolidated Appropriations Act of 2021 extends the EPSL and EFMLEA tax credits created by the FFCRA until March 31, 2021, it does not create any additional paid benefits for employees who have exhausted their 80 hours of EPSL or 12 weeks of EFMLEA leave under the FFCRA. Instead, the bill merely authorizes tax credits through March 31, 2021, which allows (but does not require) employers to extend FFCRA benefits to eligible employees to receive the corresponding tax benefit. 

Importantly, California’s COVID-19 Supplemental Paid Sick Leave Law (CSPSL) and COVID-19 Food Sector Supplemental Paid Sick Leave Law (CFSSPSL), which mandate 80 hours of emergency paid sick leave for Californians employed by employers with 500 or more employees, were to be extended if the FFCRA’s benefits were extended. Thus, along with the expiration of the FFCRA’s benefits, California’s CPSPSL and CFSSPSL paid sick leave mandates have also expired as of December 31, 2020. Since the California paid sick leave benefits do not provide a corresponding tax credit, the federal extension of tax credits to March 2021 does not appear to impact CSPSL or CFSSPSL. California employers should monitor the Division of Labor Standards Enforcement (DLSE) website for the most up-to-date information. In addition, all employers should review any applicable state or local leave ordinances.

No Retaliation By Employers

In order to remain eligible for payroll tax credits for continuing FFCRA paid leave benefits through March 31, 2021, employers must not retaliate, discharge, discipline, or in any way discriminate against employees who seek to take paid leave as provided for in the FFCRA. While this prohibition is addressed in the context of eligibility for expanded tax credits, employers should be mindful that the anti-retaliation provisions of the FFCRA are still applicable to any past use of FFCRA benefits, even if employers do not extend benefits through the first calendar quarter of 2021. 

Employers Must Employ Accurate Recordkeeping of COVID-19-Related Leave

If employers opt to voluntarily provide FFCRA paid leave benefits between January 1, 2021 through March 31, 2021, in order to claim the expanded tax credits, employers must keep accurate records of such COVID-19-related leave and ensure that they comply with the leave limits imposed by the FFCRA. That is, employers must pay close attention to the amount of paid leave for which they will be eligible for tax credits, and should adhere to the specific limitations on paid leave afforded by the FFCRA, as such limits will apply to the available payroll tax credits. With respect to employer-provided paid leave for which tax credits will not be sought, such leave may be tracked separately and administered in accordance with the employer’s paid leave policies.

As we enter 2021, with the end of the pandemic nowhere in sight, employers must brace themselves for another challenging year of navigating COVID-19 and its substantial impact on the workplace. In the meantime, the expanded tax credits afforded by the new federal stimulus bill may provide some degree of support for employers seeking to help their employees stay afloat as they face difficult circumstances caused by COVID-19.

Lessons for Employers: Employers should decide whether to voluntarily extend FFCRA paid leave benefits to employees through March 31, 2021. If doing so, employers must continue to accurately document the use of such leave and ensure compliance with appropriate recordkeeping in order to receive the expanded tax credits. Additionally, employers should determine whether other state and local laws mandate the provision of paid leave benefits similar to those required by the FFCRA, and should closely monitor any developments and adhere to such laws, as applicable to their jurisdiction.

Need assistance with managing your workforce during COVID-19?  Contact the attorneys at Bradley & Gmelich LLP.

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.

 

 

 

 

 

Ki Lin Tay is a Senior Associate Attorney at Bradley & Gmelich LLP. Ki Lin focuses her practice on representing employers and providing strategic advice and counsel in all aspects of employment law and workplace matters, including employment law compliance, employment litigation, workplace investigations, internal audits, wrongful termination, discrimination, retaliation, harassment, misclassification, wage and hour, and general contract matters.

As a qualified attorney in both the United States and Canada, Ki Lin’s experience representing and defending employers in her legal practice is broad and international in scope. Prior to joining the Firm, Ki Lin served as in-house company Counsel and Head of Legal for a national human resources compliance company, arming her with a unique understanding of the dynamics from both sides of the table. Ki Lin specializes in working proactively with employers to develop business and legal strategies that mitigate the risk of employment disputes and maintain compliance with the complex and dynamic landscape of employment law. She regularly provides employers with the mechanisms needed to reduce potential liability and exposure, including employment law counseling, workplace training programs, company policy and handbooks, and all other employment-related contracts and documents used to manage legal risk. ktay@bglawyers.com

 

CALIFORNIA ENACTS MANDATORY COVID-19 NOTICE AND REPORTING REQUIREMENTS

Ki Lin Tay, Esq.and Jaimee K. Wellerstein, Esq., Bradley & Gmelich, CALSAGA Legal Advisor

 

On September 17, 2020, Governor Gavin Newsom signed another COVID-19 related bill into law – Assembly Bill 685. This new bill imposes strict notice and reporting requirements upon California employers, in both the public and private sector, and expands the California Division of Occupational Safety and Health’s enforcement authority to ensure safe workplace operations.

 

Assembly Bill (“AB”) 685 – which will go into effect January 1, 2021 – sets out several categories of employees to whom notice must be provided, and establishes detailed written notice requirements, which must be quickly prepared and distributed to employees within time limits set by the bill. The mandates set out by the new law are certainly not straightforward, so California employers will need to pay close attention to the complexities of AB 685, and should start the compliance process now to ensure they meet the requirements of this new law come the new year.

 

New COVID-19 Notice and Reporting Requirements

AB 685 requires all California employers, public or private, to provide “notice of a potential exposure” to COVID-19 from a “qualifying individual” within one day of being informed of a potential exposure at the “worksite.” These terms are specifically defined in the bill, as follows.

 

When Does An Employer Receive “Notice of a Potential Exposure”?

Under the new law, notice of a potential exposure is defined to include:

 

a) Notification from a public health official or licensed medical provider

that an employee was exposed to a “qualifying individual” at the

worksite;

b) Notification from an employee or the employee’s emergency contact that

the employee is a “qualifying individual”;

c) Notification through the testing protocol of the employer that the

employee is a “qualifying individual”; or

d) Notification from a subcontracted employer that a “qualifying individual”

was on the employer’s worksite.

 

Who is a “Qualifying Individual”?

A “qualifying individual” is any person that has: (1) a laboratory-confirmed case of COVID-19; (2) a positive COVID-19 diagnosis from a licensed health care provider; (3) a COVID-19 related order to isolate from a public health official; or (4) has died from COVID-19.

 

It is important to note that if an employee provides informal notice that they may have been exposed to COVID-19 – that is, where one of the above four “qualifying” scenarios has not occurred – that employee is not a “qualifying individual” as defined by AB 685. However, it is always best practice to remove any employees that suspect that they have been exposed to COVID-19 in order to maintain the health and safety of the workplace, unless and until testing or diagnosis can be obtained to confirm they are not infected with the virus.

 

What is Considered the “Worksite”?

Pursuant to AB 685, the “worksite” is defined as “the building, store, facility, agricultural field, or other location where a worker worked during the infectious period”. The term “worksite” does not include “buildings, floors, or other locations of the employer that a qualified individual did not enter”. Employers need only provide notice to workers that were at the same worksite as the qualified individual.

 

Who Must the Employer Notify?

The new bill sets out three categories of employees to whom notice must be provided. The employer must provide written notice to: (1) all employees; (2) the employee’s exclusive representative, where applicable; and (3) the employers of any subcontracted employees “who were on the premises at the same worksite as a qualifying individual” within the “infectious period” (as defined by the State Department of Public Health).

 

Furthermore, if the level of exposure meets the definition of a COVID-19 “outbreak,” as defined by the State Department of Public Health, the employer must provide notice to the local public health agency within 48 hours. This notice must disclose the names, number, occupation, and worksite of the employees who have contracted COVID-19. The employer will also have an ongoing obligation to update the local public health department regarding any further confirmed cases of COVID-19.

 

How and When Must the Notice be Provided?

Written notice must be given within one business day after the employer is informed that there has been a potential exposure to COVID-19 at the worksite. This notice must be provided to employees in the same manner the employer “normally uses to communicate employment-related information”, as long as that method of communication will reach the employees within one business day. These methods of communication may include personal service, overnight mail, electronic mail, or text message, provided it can be reasonably anticipated that the employee will receive the communication within one business day. This notice must be provided in English as well as any other language understood by the majority of the employees at issue.

In addition, “exclusive representatives” of the employees, such as union representatives, must receive notice which contains the same information required to be indicated in a California Division of Occupational Safety and Health (“Cal/OSHA”) Form 300 incident report, to the extent that information is known to the employer.

 

What Information Must the Notice Contain?

The notice to employees must contain the following information:

 

a) Notification from a public health official or licensed medical provider

that an employee was exposed to a “qualifying individual” at the

worksite;

b) Notification from an employee or the employee’s emergency contact that

the employee is a “qualifying individual”;

c) Notification through the testing protocol of the employer that the

employee is a “qualifying individual”; or

d) Notification from a subcontracted employer that a “qualifying individual”

was on the employer’s worksite.

 

In terms of record-keeping requirements, employers must retain records of any written notices issued for a period of three years.

 

Are Any Employers Exempt From These Provisions?

Yes – the notice requirements do not apply to certain health facilities as defined in Section 1250 of the Health and Safety Code, nor do they apply to employees who, as part of their duties, conduct COVID-19 testing or screening or provide direct patient care or treatment to individuals who are exposed to or have tested positive for COVID-19, unless the qualifying individual is an employee at the same worksite.

 

Cal/OSHA’s Expanded Enforcement Authority

AB 685 expands Cal/OSHA’s authority to shut down places of employment by prohibiting operations and entry onto the worksite if that worksite poses any risk of exposure or “imminent hazard to employees” related to COVID-19. In the event that this occurs, Cal/OSHA will provide the employer with a separate notice that must be posted in a conspicuous location.

Employer Takeaway:

Given the complexities and detailed requirements of this new bill, as well as the short window of time permitted to provide the required notices, California employers should immediately begin implementing the practices and procedures necessary to ensure compliance with these new laws in time for the new year.

 

For further information or assistance with preparing for compliance with these new requirements, contact your attorneys at Bradley & Gmelich LLP. We are here to help you make the compliance process as painless as possible!

 

Ki Lin Tay is a Senior Associate Attorney at Bradley & Gmelich LLP. Ki Lin focuses her practice on representing employers and providing strategic advice and counsel in all aspects of employment law and workplace matters, including employment law compliance, employment litigation, workplace investigations, internal audits, wrongful termination, discrimination, retaliation, harassment, misclassification, wage and hour, and general contract matters.

As a qualified attorney in both the United States and Canada, Ki Lin’s experience representing and defending employers in her legal practice is broad and international in scope. Prior to joining the Firm, Ki Lin served as in-house company Counsel and Head of Legal for a national human resources compliance company, arming her with a unique understanding of the dynamics from both sides of the table. Ki Lin specializes in working proactively with employers to develop business and legal strategies that mitigate the risk of employment disputes and maintain compliance with the complex and dynamic landscape of employment law. She regularly provides employers with the mechanisms needed to reduce potential liability and exposure, including employment law counseling, workplace training programs, company policy and handbooks, and all other employment-related contracts and documents used to manage legal risk. ktay@bglawyers.com

 

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-Hubbell, the highest peer rating available. jwellerstein@bglawyers.com

WHAT YOU SHOULD KNOW ABOUT CALIFORNIA WORK BREAK LAWS 

Debbie Howlett, TrackTik, Network Partner

While many security companies recognize that hungry and tired security officers aren’t at their most productive, providing meal or rest breaks to employees isn’t universally required by law (though many employers do provide meal or rest breaks out of courtesy).  

It is well-known that the state of California has some of the strictest employment laws in the United States. And while a number of U.S. states do require employers to provide meal breaks or rest breaks, California is only one of a few states that require both. It also requires that security companies pay their officers for some of this time by offering both a meal break and paid rest breaks.  

Meal Breaks

California law requires that for every five hours a security officer has worked, security companies must provide a 30-minute meal break. However, companies do not have to pay for this time – meal breaks are unpaid. So if the officer only works six hours or less, they can waive the right to a meal break. Security officers who work ten hours are entitled to a second 30 meal break which is also unpaid. If the entire shift doesn’t exceed 12 hours, then an officer can waive the second break as long as the officer took the first break. Two breaks may not be waived in one day.  

Rest Breaks

California law also requires companies to provide rest breaks to their officers. For every four hours worked, security companies must provide a paid 10-minute rest break. Security officers who work less than three-and-a-half hours are generally not offered rest breaks. 

As with all legislation, compliance with California’s labor laws is critical for security organizations since a failure to comply can lead to costly labor claims, stiff penalties, and lawsuits. So staying compliant with meal and rest breaks requirements is critical.  

Recent Lawsuits

Here are two examples of the consequences of not complying with California Work Break Laws, although there are some exceptions to the laws like for private-sector emergency workers who need to be available during their entire shift. 

In 2019, a resort located in Rancho Palos Verdes settled a class-action lawsuit with its hotel workers for $2.1 million. The Terranea Resort failed to provide hotel employees with rest and meal breaks, as well as numerous other violations under California labor law. 

Also in 2019, McDonald’s agreed to pay $26 million to settle a 6-year old lawsuit that alleged it violated wage and hour laws by not granting meal and rest breaks for 38,000 workers at its California restaurants. While McDonald’s didn’t admit culpability in the lawsuit, it did agree to ensure employees get adequate breaks.  

Advanced Break Management

To address the complexity of California work break laws, security companies should look for a security workforce management solution that includes Advanced Break Management. This allows supervisors and managers to implement break rules and automate break management to ensure that employees take the right breaks at the right time. It also ensures that you remain in compliance with the strictest labor legislation in your jurisdiction.   

A good rule of thumb here is to choose a solution that enables multiple meal and rest break rules to be created instantaneously, and alerts so security officers are always aware of breaks for best performance. Other important features include an overview of guard break schedules, simplified scheduling according to positions rather than individuals, and break reminders and overriding features for changes and exceptions.  

Advanced break management gives security organizations peace of mind by making it easier to comply with California’s ever-changing break rules and legislation – and reduce legal and financial risk – while simultaneously increasing workforce flexibility and guard productivity.

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 
Content Specialist 
TrackTik 

debbie.howlett@tracktik.com
Twitter: @TrackTik  

 

BENEFITS OF ONLINE TRAINING FOR SECURITY OFFICERS 

Armand Adkins, GuardsLink

Traditional methods of training were confined to four walls, where a room full of participants would listen to a facilitator who stood at the front of the class.  With today’s technologies, we can now think outside the box, or if you will, train outside the four walls. With the necessity for social distancing in certain locations, taking training courses online is not only logical, but the safe option. These days, security officers can receive online training on a range of different topics, ranging from communications to the theory portion of armed training. Ensure you take your training from a top online training platform for security officers. This article discusses the benefits of online training for security officers. 

Tools Needed For Online Learning

Before we dive into the benefits of online training for security officers, we have to take a moment to highlight the tools someone would need for online learning. As we know, for the traditional on-site methods of training, all one needs is a notebook, a pen and, of course, to show up on time at some location which may or may not be convenient. However, in an online environment, the learner will need the following in order to access their instructional materials that may include videos, audio, text and images: 

  1. Laptop, desktop, tablet or smartphone 
  2. Strong internet 
  3. Space for re-enact demos and practice, and 
  4. Props for practice, if necessary 
Convenience and Flexibility

Because online training courses are available 24/7, prospective security officers can take their mandatory training at a timethat is convenient for them. This flexibility allows trainees to fit their training around their lifestyle, rather than the other way around. This is especially vital for trainees with children, or prospective security officers still working at another job. Imagine having to juggle a full-time job with on-site training; that could translate to long commute hours and loss of weekends. Also, online training reduces the chance of a security officer missing their training, which potentially could result in committing errors while on duty. 

Compliance and Liability

As Calsaga is correct to remind its members regularly, all security officers, and by extension security companies in California, are required to meet the training and continuing education standards set out by the BSIS. No exceptions. 

There are many existing BSIS approved, third-party online trainers.  Your security officers will find one of them to receive training, and then your company must have the administration process in place to know when training is due by guard, track down the security officer to obtain the certificates and properly store them consistently, every time.  Likewise, there are integrated training platforms, like GuardsLink, that not only include the training for consistency across all your guards, but includes the tracking and proper, secure storage of certificates to ensure compliance.  Whether you send your security officer to obtain third-party online training or you have a platform to simplify the process in-house, your obligation remains the same –  to maintain compliance with training requirements to protect your company and security officers from compliance findings and/or liability issues.  

No Class Size Minimum & More Precise Training

With online training, it is easier and faster to distribute learning resources and monitor and track how security officers are engaging with the content. Training is available on-demand and does not require special planning and logistics. To access, all one needs to do is make a purchase, create an account, and find a convenient time to work through the learning materials. The right training can be taken at the right time, without the concern of whether there are enough trainees to justify the coordination and cost of on-site training.  

Manage Dissemination of Protocols

When a new security protocol or guideline is issued, whether from regulators or internal, it is easier to manage its dissemination among security officers in active service through online training. This way, SOPs (Standard Operating Procedures) and other procedural materials can reach those it is intended for in a streamlined manner.  

Opportunity for One-on-One

The majority of time traditional training involves one-to-many. Although online training is also one-to-many, the opportunity for having a one-on-one with the facilitator is greater because learning management systems (LMS) are built to have a one-on-one feature by default. On-site training has to follow specific schedules, especially where the venue and/or trainer have to be booked and paid for. It is different for online training, as trainees can drop their questions and receive feedback from the facilitator at each other’s convenience. Sometimes, this one-on-one opportunity could be extended post-training, which could be helpful for those new on the job. 

Go In-Depth on Niche Topics

As new situations arise in society, new security issues will also arise. Using online training, security officers and security companies are assured of receiving high-value training from those with subject matter expertise on niche topics. For instance, with active shooter training, who better to facilitate than one who had previously trained for and worked in an active shooter environment from the perspective of a security and public safety professional? Everyone can also save time by having the facilitator record once, rather than having to be physically present in several locations.  

Reduce Costs

On-site training involves several costs like equipment, location, transportation, trainers per session, and so on. With online training the purchase is the only cost, where the individual gets unlimited access at their convenience. Importantly, quality online training does not have to mean expensive.  Several vendors, including GuardsLink, offer affordable online training, whether the cost is picked up by the individual security officer or company. In fact, security companies can expect to get discounts when purchasing in bulk on behalf of their security officers. 

Conclusion

Of course, there are limitations to online training such as slow internet connection, distractions at home, and space for practice. However, the benefits outweigh the limitations. Current realities have created an essential need for transitioning to digital. Education, training and professional development have now transitioned online. Benefits of online training for security officers  

range from convenience and flexibility, reduced costs, and easy tracking. Not only that, but clients can be assured that your security officers are up to date on security trends that will keep their business, staff and properties secure.  Choosing to take training courses online is a smart move. 

Armand Adkins is CEO of Security Alliance Group (SAGPro.com), a provider of best-in-class support services/systems for small to mid-sized private security guard companies. With 25 years of legal, compliance and operational experience, Armand leads a dynamic company that delivers two unique services to address the training and hiring needs of security companies.

GuardsLink platform gives security companies the ability to provide their employees branded online training that is both affordable and quality, and includes an integrated system to monitor and manage guard training. 

SecurityHires (SecurityHires.com) is a security industry focused job board designed and built using cutting edge technology to assist in all the hiring requirements of security companies seeking qualified guards.  

Those looking for an intuitive and robust training solution implemented at no cost with a revenue sharing model, or more information regarding the benefits of the industry specific job board, should contact Armand at info@sagpro.com or call (888) 360-9373.

THREE WAYS YOUR SOFTWARE SHOULD SUPPORT MEAL AND REST BREAK COMPLIANCE 

Team Software, Network Partner

By capturing electronic timekeeping data with your software, you’re able to catch and prevent violations before they happen — something that isn’t possible with manual timekeeping. 

Timekeeping is an everyday concern for security companies. Your guards are clocking in and out of shifts across multiple locations. Your supervisors can’t be everywhere at once to ensure breaks are being taken by the right people at the right times. This doesn’t just have an impact on your individual employees — it also has an impact on your business’s financial wellbeing when it comes to paying for meal and rest break compliance violations. 

Understanding the impact of these laws is especially crucial for security companies in?California, where violating meal and rest break laws can result in compensating employees for lost breaks with additional hours of pay. Here’s a list of three ways your software should support your business when it comes to meal and rest break compliance. 

Timekeeping and Punch Types

Your meal and rest software should offer enhanced timekeeping and punch types to allow you to track your guards’ multiple unpaid and paid (otherwise known as on-duty) meals and paid breaks. You should also be able to see actual in and out times, and view, edit, and clean up your collected data in efficient and helpful ways when punch data must be corrected. 

Reporting

Look for software with useful and informative meal and rest reporting to help determine who is and who isn’t in compliance with your company and/or state’s meal and rest laws. Reporting should be flexible to allow you to identify any or all violations such as meals and breaks that have been missed, are too short or not taken in a timely manner. The identification of and premium (or penalty) payment of the violations you identify according to your business policies should be a simple, streamlined process. 

Notifications 

Your software should be able to send notifications to the right people at the right time to support your company’s meal and rest compliance and minimize premium payments to employees. To ensure lunch breaks are taken in a timely manner, look for focused notifications that alert supervisors if a meal hasn’t been started after a certain amount of time into a shift. Guards should also be notified if they’re checking back into work before their lunch or break is taken in full. 

When used properly, a holistic software solution ensures your timekeeping is accurate, easy to manage and in compliance with state, local, union or company-specific regulations. Contact TEAM Software at sales@teamsoftware.com to learn about how we can help you manage your meal and rest break compliance. 

HOW TO WIN IN-HOUSE CONTRACTS AS A PRIVATE SECURITY COMPANY 

Chris Anderson, Industry Expert, Thinkcurity, Silvertrac, Network Partner

For a long time, the contract security industry has faced fierce competition. A limited number of large companies dominate the market and hundreds of other security guard businesses battle for what’s left of the contracts. 

2020 is no different. The top 5 security guard companies account for $17.1 billion of the $28 billion contract security market. For every other security company, staying on top of trends is critical for success in the industry. 

Robert Perry’s white paper on the U.S. Contract Security Industry is one of the best resources to follow these trends. One opportunity in the security industry that the paper talks about is contract security companies winning contracts with businesses that currently use in-house security. 

There is an estimated $15 billion in potential revenue from converting in-house security to contract security. But many security guard companies are not moving on this opportunity. 

This article will look at 3 advantages of contract security over in-house security. You can work these advantages into your sales strategy to win more contracts with these businesses. 

  1. Cheaper Security Costs 
  2. More Experience & Training 
  3. Security Technology 

If you want more information on this topic and other trends in the security industry, you can watch the on-demand Thinkcurity Virtual Physical Security Summit. Robert Perry, the Day 1 keynote speaker, reviewed the 2020 white paper as well as how to have long-term success in the contract security industry. 

  1.  Cheaper Security Costs

If you run your own security business, you know that business owners are constantly thinking about their bottom line. One of the biggest advantages for a company to use contract security services, instead of keeping it in-house, is that it is much cheaper. 

In-house security requires a business to cover all kinds of extra costs like recruiting, onboarding, training, insurance, and benefits. Hiring 1 employee costs an employer an average of around $4,000, and healthcare benefits can be as much as 9% of employer costs per employee. 

Contract security is often sold as one flat, hourly guard rate. Not only are you providing the security guard and paying their salary, you also cover all of the associated costs with maintaining the roster, working them into that flat, hourly rate. 

When a company hires security officers in-house, they need to be extra careful when they decide to change their roster size. As a contract security provider, you can easily increase or decrease coverage for a client as needed. 

Lastly, contract security companies can more easily offer additional security services. Take mobile patrols for example. An in-house team would have to invest in the vehicle itself, any extra training or licensing, and other costs. 

As a contract security provider, you either already have mobile patrol teams in place or can more easily subcontract a company that offers mobile patrols. Plus, since you are spreading the cost across your entire business, it keeps the rates lower for a client, making them even more likely to give you the contract. 

More Experience & Training

Highlighting the experience and training your security guards have is one of the best cases you can make to win a contract from a company currently using an in-house team. Of course the first step is making sure that your guards and supervisors are properly trained. 

Thinkcurity is a great resource for general knowledge like training security supervisors to be true leaders. On top of that, training that is backed up with certifications is very helpful. Organizations like CALSAGA and ASIS can provide your officers with certified training that will look great to any potential client. 

When you have experienced officers, you will stand out in the industry and will be in a good position to win contracts – even without being the lowest bid. If you trust the quality of service provided by the officers you employ, you can wow a potential client even further by showing the steps you take to have high accountability and transparency in your operation. 

Experience means more than just the amount of years each one of your security guards has worked in the industry. Your experience as an owner is a huge value add to a company whose focus is not on security services. 

Because of this, if you’re looking to win over in-house contracts, start with businesses that are in industries or require services that you have the most experience in. Your resume as a security service provider in the specific areas they need help with will be a very convincing argument even before you get to talking about your rates. 

Security Technology

Technology is becoming more and more important to the private security industry every year. 

Depending on the size of your security company and what kind of services you offer, there is a wide range of security technology and software solutions you can use to improve operations. 

Regardless of size, every guard company should have some level of security incident reporting software. Small operations need at least a simple software to collect good data from the field and keep track of guards during guard tours. 

Larger security companies probably will require more sophisticated security software. Command center (GSOC) and visitor management features are key to handling larger contracts with more specific needs. 

Artificial intelligence (AI) technology is becoming more popular in security – especially with tools like AI integrations with remote guarding. 

Whatever security technology you have incorporated into your business can give you an advantage when trying to win over an in-house security contract. Already having technology that’s worked into your guard rate is likely to be appealing to a potential client. 

Closing

With all of the competition in the private security industry, keeping your eyes open for new opportunities is critical to growth and long-term success for your security company. If you are interested in going after in-house security contracts, these 3 advantages should absolutely be highlighted during the proposal process. 

Still want more hands-on advice? Make sure to watch the on-demand Virtual Physical Security Summit and tune-in to Robert Perry’s keynote speech on long-term success in the security industry. 

Chris is the Founder of Silvertrac Software and has been working in the security industry for more than 25 years. He enjoys working with our clients everyday to help them grow their businesses and really enjoy what they are doing. Chris currently lives and works in Seal Beach, CA.

SB 1159 – REPORTING WC CLAIMS WHETHER WORK-RELATED OR NOT!

 Shaun Kelly, Tolman & Wiker, Preferred Broker

Credit needs to be given to the CALSAGA staff and President David Chandler for their ability to put together a great virtual conference in the midst of the COVID pandemic. there was an abundance of information provided by the speakers that was shared with the CALSAGA Members and those that were able to attend the conference. This event took tremendous amount of coordination, time and resources to put together and they did an outstanding job!

We are receiving a large volume of calls regarding the compliance with the SB 1159 and what to do. As this was part of our presentation for the conference, we want to reemphasize the details of the new law and help Members navigate through the process. Compliance with the SB 1159 is mandatory and comes with a penalty for those employers that do not comply. However, if you have less than 5 employees, this new law does not apply to you.

Linked below is an outline of FAQ’s that we have developed for you. Click on the link and please review. Do not hesitate to contact us if you have any questions.

Thanks again to CALSAGA for putting on a wonderfully informative conference!

View Senate Bill 1159 Primer: New Reporting & Notification Requirements for Employers


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.

 

COVID-19 AND EMERGING SECURITY RISKS

Tory Brownyard, Brownyard Group 

Earlier this year, I wrote about how a hardening market for security insurance was going to have a pronounced effect on the industry. What I did not — and could not — anticipate was the impact of a pandemic, global civil rights protests and inner city looting across the country.

It has been heartening to watch how the security industry has responded. Security firms did not hesitate to change their policies and procedures to protect officers. If they had hesitated, we may have seen more guards fall ill with COVID-19. Yet many still have questions about what this all means for them, particularly when it comes to insurance and liability. Let’s review the issues.

 

COVID-19

As was the case for many industries, early stages of the pandemic brought much uncertainty to security. It was unclear where officers would be needed most, and many expected that firms may struggle as schools, shopping centers and public spaces were shut down. Security companies acted fast to protect their staff and figure out what their clients needed most in these difficult timeswhich is why the industry hasn’t been hit as hard as might be expected. COVID-19 has highlighted a greater need for security officers, as well as their versatility.

While we saw an expected decline in business in some sectors and regions, we have also seen many security firms adapt to changing business needs and even reinvent themselves in response to COVID-19. This has meant taking on patrol duties, hospital work and alarm response jobs. As businesses have started reopening, security officers have been asked to handle temperature screening.

These temperature screenings raise many questions about risk and insurance. This may seem outside the bounds of typical post orders, yet officers who protect office buildings and other large facilities have been conducting these temperature checks. In these instances, insurance protection could be available under incidental medical malpractice coverage. Still, it is important for security firms to take measures to ensure their clients understand that temperature readings do not guarantee tested individuals don’t have COVID-19.

To limit liability, other firms have responded by contracting medical professionals to conduct temperature screenings. In this case, incidental medical malpractice coverage no longer applies as it is intended to cover security workers, not contracted medical professionals. For medical contractors, security firms would want to consider acquiring a separate medical malpractice insurance policy.

Security officers have also been asked to add sanitizing and disinfecting to their list of duties. Since the intent of security insurance coverage is usually only for security work, these tasks likely fall outside the risks insured by a security firm’s policy. This is a situation where checking in with a trusted insurance brokers is a good idea. Sanitation services may need to be classified as janitorial services or something similar, which may necessitate a separate insurance policy. Otherwise, any claims arising from sanitizing and disinfecting may not be covered.

Beyond additional responsibilities, the security industry has also had to deal with the virus itself. What happens if an officer contracts COVID-19 on the line of duty? In some instances, contracting a disease in the line of duty may be covered under workers’ compensation policies. Any claim would have to be followed by a thorough investigation to find out whether the contracting of the virus was work-related. If it is determined, that the claim is compensable, then benefits may include coverage for medical bills and indemnity pay for those who have lost time from their job. As every case is different, it is always a good idea to talk it through with your broker or insurer to make sure you have all the facts.

How the protests have impacted security

Nationwide, there have been riots and protests regarding the police force in recent weeks. As noted in news reports, police in a few areas of the country did not respond to calls in late June. This is clearly a conundrum for security officers with post orders to observe and report. For example, if a security officer works at an apartment complex that deals with intruders who damage the lobby, typically they would alert the police. Now, they may be forced to choose between enduring daily intrusions and ignoring the risk to life and property or taking on the risks of physical intervention.

Consequently, we’ve received many calls in recent weeks asking if officers are covered to act in these circumstances. Since they cannot just call the police any longer, what are the potential liabilities? In this situation, the answer likely comes down to their post orders. If the post orders clearly state the responsibility of the officer is to just observe and report, then they take on liability by acting further, even in the event police do not respond. Plus, officers typically tasked with observing may not have the training to de-escalate physical confrontations — putting the officers and others at risk.

The other issue that has emerged for security officers in recent weeks has been the actual protests. Some guard firms have been asked to step in and help secure businesses in areas affected by looting. With this significant exposure to crowds and potential acts of violence, this is a risk to be carefully weighed.

Over the past two decades, the security industry has made a dramatic shift towards careful risk management. The industry is safer than ever — and well equipped to respond to our current realities. It still helps for companies to maintain an open dialogue with their insurer to ensure any and all additions to their services are covered in their policy, particularly as responsibilities outside their normal comfort zone become more relevant in the industry.

 

Tory Brownyard, CPCU, is President of Brownyard Group (www.brownyard.com), an insurance program administrator with specialty programs for select industry groups. In addition to his responsibilities as President, he currently spearheads the Brownguard security guard insurance program. Tory is a highly-regarded subject matter expert in the field of Security Insurance and has contributed to industry publications such as Security Magazine and has been featured regularly in leading insurance publications. He can be contacted at TBrownyard@brownyard.com.

7 DE-ESCALATION TIPS FOR PRIVATE SECURITY

Chris Anderson, Silvertrac Software, CALSAGA Network Partner

Keeping people and property protected is the most important service that private security provides.

In any tense situation where there’s potential for violence, de-escalation needs to be the priority, not just one of many options. To make sure this happens, your entire security operation needs to be on the same page about how to respond to and de-escalate tense situations.

This article will cover some basic strategies your security guards can use to keep tense situations calm and prevent violence or injury.

  1. Escalation Warning Signs
  2. Steps to De-Escalation
  3. What Not to Do in Threatening Situations

Once you start implementing these strategies in your operation, training your officers on them should be the highest priority. Well-trained guards, supervisors, and managers will be able to better execute de-escalation strategies.

Escalation Warning Signs

In the private security industry, there’s a good chance your security guards will be in potentially dangerous situations. That’s why having strong situational awareness is incredibly important.

Here are some of the most common warning signs that a person might escalate a situation in the field:

  • Direct threats
  • Bragging about previous violent encounters
  • Yelling
  • Extensive profanity
  • Violating security guard’s personal space
  • Finger pointing
  • Heavy breathing/flaring nostrils
  • Making fists

 

These are the most obvious signs that a situation could escalate. But there are less obvious signs that are just as common:

  • Higher tone of voice
  • Laughter at odd/inappropriate times
  • Refusing to make eye contact
  • Tensing body

Making sure that your security guards who work in the field are aware of these warning signs. It will make dealing with dangerous situations that much easier.

7 Steps to De-Escalate Situations

Staying calm in a potentially threatening or dangerous situation is a lot easier said than done. It’s completely normal for security guards to want to fight fire with fire and stand their ground.

But this is only going to make the situation worse. If a guard responds aggressively, the person they’re dealing with will want to respond even more aggressively back.

These 7 steps will help any security operation be better equipped to handle sticky situations and keep everyone safe.

1. Prepare

Having a plan for your security teams to follow in threatening situations has a lot of benefits. Following a plan can minimize mistakes, give officers confidence, and keep them calm. Using past situations to help develop your plans will make them even better

Things to consider in these plans include knowing when to call for backup, when using physical force should be considered, and how to communicate. Once you have a solid plan in place, make sure all security officers are trained well to implement that plan.

2. Understand

Whether a security officer is trying to remove a homeless loiterer, a violent criminal, or an aggressive soccer mom, it’s important to look past the person’s actions. Looking at everyone as people first – even in tense situations – will make them feel like someone actually wants to help them.

If anything an officer says or does comes off as judgmental, the person they are trying to calm down will see the situation as a struggle instead of an attempt to find a solution. If the officer’s goal is to keep everyone calm, escalation is a lot less likely.

3. Listen

The #1 rule for listening is to not interrupt. But it’s more than just letting an angry person rant and yell. People need to feel like they’re actually being heard. Security guards dealing with an angry person should practice active listening.

Maintaining eye contact will keep guards focused and show the person that someone is paying attention to them.

Repeating what they say back to them makes sure the security guard knows what the person is trying to say, not just guessing.

4. Communicate

Communication is not just about the words you say. Studies show that communication is only 7% verbal. The rest comes down to how things are said and body language.

Your security guards need to pay attention to every aspect of how they communicate. Doing things like keeping a calm tone of voice or standing further back will communicate that the security guard is not a threat and wants to help.

When asking questions, giving people plenty of time to respond can make a huge difference. Not only will the security guard be practicing patience and keeping calm, the problem person won’t feel rushed.

5. Collaborate

Even the most aggressive or threatening person is more likely to respond better when they feel like someone is genuinely trying to help them. Again, an officer’s main priority should be peacefully resolving the situation, not using force.

Using phrases like “let’s figure out how we can fix this problem together” shows that the officer is willing to work with the person. Asking questions to better understand why the person is mad in the first place can help the officer come up with the best solution.

Offering solutions to the problem based on what the person has said shows the security officer is actually trying to help or mitigate  the situation.

6. Document

Documenting a problem interaction can make all the difference. If the situation turns violent, having documentation can help later on in potential lawsuits or interactions with law enforcement.

Using a guard management software like Silvertrac will allow security guards to record audio, take notes, and take pictures to make sure the entire story gets told.

To keep the situation calm, it’s always best to ask or inform the problem person that they will be recorded. If they start to escalate in response, taking notes and/or making sure backup is nearby are good alternatives.

7. Debrief

Talking about tense situations as a team is super important. Getting feedback from guards in the field can help update and improve de-escalation preparedness in the future.

This is a great time to get more buy-in from your security guards since they will get to play a part in developing strategy.

What Not To Do

Knowing what not to do in potentially threatening situations is also important. Here are a few tips of things to avoid when dealing with an escalating situation.

  • Don’t make false promises. Promises, in general, are probably better to avoid.
  • Don’t interrupt. This is so important it’s in here twice. Interruption is one of the quickest ways to start escalating an already tense situation.
  • Don’t make any type of threat. Again, the goal is to resolve the situation without violence. Threats make that less likely.
  • Don’t show visible frustration. The problem person will respond better to an already calm security officer.
  • Don’t say stereotypical lines like “calm down” or “just breathe.” These phrases can actually cause a negative response and make the situation worse.

One Last Word

These are great tips for trying to keep situations calm and people safe. But we know this won’t prevent every bad situation from getting out of hand.

Violent and tense situations are inevitable in the private security industry. Having a good grasp on every strategy and option will help security teams have the best response in any situation. Knowing how to respond appropriately will keep your security guards safe and your clients happy.