Major Industry Acquisition Announced

As an association we strive to keep you up-to-date on relevant information regarding the security industry. Please review the press release below.

Allied Universal Acquires U.S. Security Associates
CONSHOHOCKEN, Pa. and SANTA ANA, Calif. and ROSWELL, Ga. , July 16, 2018 (GLOBE NEWSWIRE) — Allied Universal, a leading security and facility services company, today announced that it has reached an agreement to acquire U.S. Security Associates (USSA) from Goldman Sachs Merchant Banking Division (GSMBD), further building on its position as a leading player in the security services industry. This transaction includes the acquisition of Andrews International, the global arm of USSA.

Based in Roswell, Georgia, USSA has operations in the United States and internationally, with revenues in excess of $1.5 billion and more than 50,000 employees. This acquisition is expected to increase Allied Universal’s national presence and customer service capabilities and will also enhance Allied Universal’s presence in Canada, as well as expand its footprint to Central America and the United Kingdom. USSA also provides Allied Universal with a sizable consulting and investigative division and event staffing business, StaffPro. The combined organization will provide unparalleled and comprehensive security solutions to its customer base around the globe.

“I am excited to welcome the USSA team to the Allied Universal family,” said Steve Jones, Chief Executive Officer of Allied Universal. “USSA has evolved into one of the leaders in the security industry over the years and provides a unique suite of security solutions to a wide array of clients across industry verticals. This transaction aligns with our long-term growth strategy of acquiring scalable businesses with significant potential when combined with the Allied Universal platform. I look forward to collaborating with the USSA team to maximize the value that together we will bring to our customers and in identifying new ideas in the security space,” said Jones.

Richard Wyckoff, President and Chief Executive Officer of USSA, praised his team and embraces the partnership. “This merger with Allied Universal is a testament to the hard work and dedication of the men and women of USSA. We have focused on world-class customer service by providing innovative manpower and technological solutions to our clients. The industry has taken notice. I am very proud of what our team has accomplished and very excited that integrating our business with another industry leader will mean more growth opportunities and career advancement potential for our associates,” said Wyckoff.

“This transaction further bolsters Allied Universal’s position as a leading provider of security officer services. We have been proud to support the Allied Universal team as they have grown the business organically and through strategic and transformative acquisitions such as this one,” said Chandler Joel Reedy, Managing Director of Warburg Pincus, a principal shareholder of Allied Universal. “We are excited to combine USSA with Allied Universal, which has a large and diverse portfolio of customers both in the U.S and internationally. Allied Universal will be exceptionally well positioned to continue to deliver unmatched service to its thousands of clients.”

Wendel North America CEO David Darmon said, “As one of the two principal shareholders of Allied Universal, Wendel is supporting the company’s continued growth as the industry continues to evolve. This is consistent with our original investment thesis and we think will further enhance the company’s leadership position.”

The transaction is expected to close by late third quarter of 2018, subject to customary regulatory approvals.

Financial advisors to Allied Universal for the transaction included Barclays, Citi, Credit Suisse, Deutsche Bank, HSBC, Moelis, Morgan Stanley and Societe Generale. Cleary Gottlieb Steen & Hamilton LLP provided legal counsel to Allied Universal. Financial advisors to U.S. Security Associates included Goldman Sachs and KeyBank. Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel to U.S. Security Associates. Terms of the deal were not disclosed.

About Allied Universal
Allied Universal, a leading security and facility services company with over 160,000 employees, provides unparalleled security services and solutions. With headquarters in Santa Ana, Calif., and Conshohocken, Pa., Allied Universal combines people and technology to deliver evolving, tailored solutions that allow our clients to focus on their core business. An unrelenting focus on clients’ success creates partnerships rooted in quality and value, and is supported by experience gained from being in business for over 60 years. Through our people and leading services, systems and solutions…Allied Universal is there for you. For more information, please visit www.aus.com.

About U.S. Security Associates
U.S. Security Associates (USSA) is a full-service safety and security solutions provider. With over 160 locally-responsive offices, international locations and over 50,000 dedicated professionals, USSA offers a complete array of physical security, remote surveillance, and global consulting and investigations to ensure better outcomes for thousands of clients and a range of industries. For more information, please visit www.ussecurityassociates.com.

Media Relations Contacts

Allied Universal
Nancy Tamosaitis, Vorticom Public Relations
212-532-2208
nancyt@vorticom.com

U.S. Security Associates, Inc.
W. Blair Meeks, Jackson Spalding
404-214-2271
bmeeks@jacksonspalding.com

There’s a lot coming up.

There are a lot of things coming up!
Managing Private Security and Growing Your Private Security Company coming in August – register now!
Nominations are now open for our Annual Awards
2018 Annual Conference & Exhibits coming in October – register now!

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Nominations are now being accepted for the Al Howenstein Lifetime Achievement Award, Valor Award, Lifesaving Award and Security Officer of the Year Award.
Each year at the Award’s Dinner that takes place during the conference, we recognize deserving security professionals. Click here for the award criteria and nomination form for the 2018 Valor, Lifesaving and Security Officer of the Year awards.


Do you know someone who deserves recognition?

Click here to learn more about the Al Howenstein Lifetime Achievement Award and access the nomination form.

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As always, we strive to bring you the most relevant information to help you run your business as efficiently and productively as possible and the programming for the Annual Conference is no exception! Session topics include: Legal Update Affecting the California Security Industry, Legislative Update, Terrorism 101, Human Resource Challenges, The Business of Worker’s Compensation and General Liability, BSIS Update, Candidate Sourcing and Recruitment and more. NEW for 2018 we are offering a session dedicated to tackling the multi-faceted topic of cannabis in California. You won’t want to miss it!

REGISTER NOW FOR THE 2018 ANNUAL CONFERENCE

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Getting to beautiful Ranch Mirage is no problem!

Need help with travel planning? We’ve got you covered.

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You’ll have another opportunity to attend Managing Private Security (formerly PPO 101) and Growing Your Private Security Company (formerly 102) August 15th and 16th in San Jose!

Managing Private Security will cover topics such as: Licensing, Financials, Service Delivery, Contracts, Human Resources, Staffing, Insurance and more. This class serves as fantastic way for those new to operating a PPO or those who desire a refresh on the legalities and complexities of running a PPO.
Check out the Managing Private Security Schedule.

Growing Your Private Security Company will cover the sales process from beginning to end with topics such as: Prospecting and the Sales Cycle, RFP’s, Pricing New Work, Contracts (and deal breakers), Insurance provisions, Transitions and Staffing, BSIS Regulations, Employee Files, and Client Follow up.
Check out the Growing Your Private Security Company Schedule.

Update from the BSIS: Important Information Regarding New Fees and Firearms Assessment

As an association we strive to keep you up-to-date on relevant information for your business. Please review the information below from the BSIS.

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NEW LICENSING FEES – EFFECTIVE JULY 1, 2018

As a result of legislation (SB 547, Chapter 429) signed into law in 2017, effective July 1, 2018, there will be new fee amounts for most license types regulated by the Alarm Company Act, Collateral Recovery Act, Locksmith Act, Private Security Services Act, and Proprietary Private Security Services Act.
Please note that SB 547 did not affect the fees in the Private Investigator Act.
Submitting Initial Applications for Licensure: The date the application and payment for initial licensure is submitted will determine whether the current or new fee will apply:
  • If the application is submitted by mail and postmarked before July 1, 2018, the current fee will apply.
  • If the application is submitted by mail and postmarked on or after July 1, 2018, the new fee will apply.
  • If the application is submitted by BreEZe or in-person before July 1, 2018, the current fee will apply.
  • If the application is submitted by BreEZe or in-person on or after July 1, 2018, the new fee will apply.
Submitting Renewal Applications: The expiration date for your current license, registration, certificate or permit determines whether your renewal payment is the current fee or the new fee amount. If the expiration date is before July 1, 2018, the current fee will apply. If the expiration date is after July 1, 2018, the new fee will apply even if you pay the renewal fee before July 1, 2018.
To see a breakdown of the application fee amounts per license type, please visit the following link: http://bsis.ca.gov/forms_pubs/newfees.pdf

NEW FIREARMS ASSESSMENT REQUIREMENTS FOR SECURITY GUARDS

Please be advised that effective July 1, 2018, a BSIS security guard registrant seeking an initial BSIS firearms permit must complete an assessment for the purposes of determining whether he/she possesses, at the time of the assessment, appropriate judgement, restraint, and self-control to carry a firearm while on duty (Business and Professions Code Sections 7583.23 and 7583.47). Additionally, under certain circumstances a holder of a firearms permit requesting to associate it with his/her security guard registration may be required to complete/pass the assessment as a condition for the association. For additional information about the assessment, including when someone is required to complete it, visit this link on our website: www.bsis.ca.gov/firearmsassessment.

REQUEST TO ASSOCIATE BSIS FIREARMS PERMIT WITH ADDITIONAL QUALIFYING LICENSE(S) AND REQUEST FOR REPLACEMENT FIREARMS PERMIT

A current and clear BSIS Firearms Permit authorizes the permit holder to carry an exposed firearm while performing the duties of only those license types listed on the firearms permit itself. For example, a permit holder who only has a security guard registration listed on his/her firearms permit and who also holds a Private Investigator (PI) license cannot work armed while carrying out the duties of a PI licensee. The firearms permit card must list the PI license for the permitholder to work as an armed PI licensee.
The Bureau created a new form called the Request to Associate BSIS Firearms Permit with Additional Qualifying License(s) and Request for Replacement Firearms Permit which can be used to associate a current and clear qualifying license that the requestor holds to the requestor’s current and clear firearms permit outside the firearms permit renewal process.
While the Bureau does not charge a fee for the association of a BSIS Firearms Permit with additional qualifying licenses, if you wish to obtain a firearms permit replacement card that reflects the additional associated licenses, you must submit the replacement fee along with the form.
Replacement Permit Fees submitted in-person, online in BreEZe, or postmarked:
  • Before July 1, 2018:            $10
  • On or after July 1, 2018:     $25
To download the new Request to Associate BSIS Firearms Permit with Additional Qualifying License(s) and Request for Replacement Firearms Permit form, visit the following link: http://www.bsis.ca.gov/forms_pubs/fq_assoc_form.pdf

It’s getting hot out there!

While the official start of the summer season is still nine days away, many areas of California are already experiencing high temperatures. Did you know that private patrol operators and proprietary security employers with outdoor post assignments must comply with the Heat Illness Prevention Standard – Title 8 California Code of Regulations (T8 CCR) Section 3395?

Cal OSHA has developed a guide to assist employers in crafting their own heat illness prevention procedures, and to reduce the risk of work related heat illnesses among their employees.

Click here to read CAL OSHA’s Employer Sample Procedures for Heat Illness Prevention.

We wish all of our members a safe and prosperous summer!

Mark your calendar!

Tickets are now on sale for our private security management training programs Managing Private Security (formerly PPO 101) and Growing Your Private Security Company (formerly PPO 102).


CALSAGA President David Chandler covers BSIS compliance and audits

 

Managing Private Security (formerly PPO 101)

This  one day training class will cover topics such as: Licensing, Financials, Service Delivery, Contracts, Human Resources, Staffing, Insurance and more. This class serves as fantastic way for those new to operating a PPO or those who desire a refresh on the legalities and complexities of running a PPO.

View the schedule for Managing Private Security 

 

Growing your Private Security Company (formerly PPO 102)

This  one day training class will cover the sales process from beginning to end with topics such as: Prospecting and the Sales Cycle, RFP’s, Pricing New Work, Contracts (and deal breakers), Insurance provisions, Transitions and Staffing, BSIS Regulations, Employee Files, and Client Follow up.

View the Schedule for Growing Your Private Security Company 

 

 

Attend one or both days! Registration includes a light breakfast and a catered lunch.  Tickets may be purchased for $99 per day or $185 for both days. 

 

Secure Your Spot Today

Questions? Contact kris@calsaga.org

BREAKING NEWS: AN EPIC WIN FOR EMPLOYERS

BREAKING NEWS!

AN EPIC WIN FOR EMPLOYERS – SCOTUS RULES THAT CLASS ACTION WAIVERS IN EMPLOYMENT ARBITRATION AGREEMENTS ARE VALID

by Barry A. Bradley, Esq.

and Jaimee K. Wellerstein, Esq.

In a monumental victory for employers in one of the most significant employment rulings in recent history, the Supreme Court of the United States held on Monday, May 21, 2018 in Epic Systems Corp. v. Lewis that class action waivers in employment arbitration agreements do not violate the National Labor Relations Act (“NLRA”) and are enforceable under the Federal Arbitration Act (“FAA”).

The long-awaited decision resolved a prior federal court circuit split. According to the National Labor Relations Board (“NLRB”), class action waivers prevented employees from engaging in protected concerted activity in violation of the NLRA. The Fifth Circuit rejected the NLRB’s rulings, first in D.R. Horton, Inc. v. NLRB, and, later in NLRB v. Murphy Oil USA, Inc. The Fifth Circuit was then joined by the Second and Eighth Circuits in refusing to enforce the NLRB’s rule.

However, in Epic Systems Corp. v. Lewis, the Seventh Circuit reached the opposite conclusion, holding that the right to bring a class or collective action is protected concerted activity under the NLRA, and that class action waivers violate that right. In Ernst & Young v. Morris, the Ninth Circuit agreed with the Seventh Circuit and the NLRB.

To resolve the dispute, the United States Supreme Court granted certiori in the three consolidated cases – Epic Systems Corporation v. Lewis; Ernst & Young, LLP v. Morris; and NLRB v. Murphy Oil USA, Inc. The Supreme Court heard oral argument in October 2017. In a 5-4 opinion, Justice Gorsuch, writing for the Court, settled the issue once and for all, holding that the right to bring a joint, collective, representative, or class-based claim is not considered a “concerted action” as understood and protected by the NLRA.

While class action waivers do not mean the end of all representative actions (because employees may continue to bring PAGA actions in California), the Supreme Court’s ruling today should still be viewed as a monumental win for employers.

Employer Takeaway: Class action waivers contained in employment arbitration agreements are valid! There is no longer any legal reason for employers not to have employees waive their ability to bring class actions under federal, state, and local employment laws. Companies, along with their counsel, should review their employment arbitration agreements to determine whether they comply with the SCOTUS standards.

Please contact Bradley & Gmelich LLP if you have any questions about the Court’s ruling.

The attorneys at Bradley & Gmelich LLP bring a wide variety of experience to assist their clients. Bradley & Gmelich attorneys excel in litigation, and a number of them focus specifically on appeals and motion work. Bradley & Gmelich attorneys have worked for large civil litigation firms, managed large and small businesses, served as deputy district attorneys and state prosecutors, and been honored with judicial internships and clerkships. Bradley & Gmelich LLP believes in the importance of continuing legal education for their clients, and we have presented seminars, workshops, and classes on many legal topics.

Barry A. Bradley is the Managing Partner of the 25-attorney law firm of Bradley & Gmelich LLP, located in Glendale, California, where he also heads up the firm’s Private Security Team.  A former Deputy District Attorney (Hardcore Gang Prosecution Unit), Barry’s practice concentrates on security licensing, business litigation and transactions, as well as defending cases involving negligent security, wrongful termination, wage and hour class actions, and assisting clients in avoiding liability through proactive, preventative measures.  The firm acts as general counsel for many security companies in California.  Barry is Legal Advisor to CALSAGA, and is an active member of ASIS International, and several other non-profit organizations.  He is rated AV-Preeminent by Martindale Hubbel, the highest peer rating available, and has been named a Southern California Super Lawyer for the past consecutive 14 years. Barry is a founding member of LEAPS, and has served on its board since its inception. bbradley@bglawyers.com

 

Jaimee K. Wellerstein is a Partner at Bradley & Gmelich LLP, and the head of the firm’s Employment Team. She 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 Legal Advisor to CALSAGA, and is a member of ASIS International. She is rated AV-Preeminent by Martindale Hubbel, the highest peer rating available. jwellerstein@bglawyers.com

 

California Supreme Court Sides with Employees in Lawsuit


Recently, the California Supreme Court handed down a decision regarding the calculation of the rate of pay for overtime, which is anything but user friendly.  A number of our members have indicated they are confused by the specifics of the decision.  The following information is meant to clarify the details.
In California, the multiplier for calculating overtime pay is based on an employee’s regular rate, which is not always an employee’s normal hourly wage. The “regular rate of pay” must include almost all forms of compensation that the employee receives. But how do you calculate the regular rate of pay when an employee receives both an hourly wage and a flat sum bonus or incentive – such as an extra $25 for working a weekend shift? This is at the crux of the case in question, Alvarado v Dart Container Corporation of California.

In the case, Dart Container allegedly maintained a policy of paying a flat “attendance bonus” of $15 per day to employees who worked Saturday and Sunday shifts, regardless of the number of hours worked on the weekend shift. A Dart employee (Alvarado) sued, claiming he was improperly paid overtime during the weeks that he earned the weekend attendance bonus.

Alvarado argued that overtime pay on any flat sum bonus or incentive should be divided only by the “regular” (non-overtime) hours he worked that week (the method used by the California Division of Labor Standards Enforcement [DLSE]), not by the “total” hours worked during the week (regular hours plus overtime hours worked – which is the formula used by the federal government and many other states). Under the DLSE method, if an employee worked 48 hours in one week, an employer would calculate the regular rate of pay by dividing 40 regular hours instead of 48 total hours (regular hours plus overtime hours) by all compensation earned in that week. This would result in a higher regular rate of pay and, thus, a higher overtime rate.  What was not clear before this case was whether the DLSE method was the law of the state.

After hearing the arguments, the California Supreme Court unanimously approved the DLSE method of calculating the regular rate and held that when a flat sum bonus or incentive is involved the total compensation earned in that week should be divided by only the regular hours worked, but also include the compensation earned as a flat sum bonus. Employers must divide the employee’s total compensation by the employee’s non-overtime hours worked, not by the total hours worked.
The Court reasoned that a flat sum bonus is not tied to the number of hours worked – the $15 will be paid when an employee picks up a weekend shift, regardless of how many hours the employee worked that week. Because the flat sum bonus was payable even if the employee did not work overtime, only the non-overtime hours should be considered when calculating the regular rate of pay.
FYI, the Court also based its ruling on two other policy factors:

  • California requires premium overtime pay which is meant to discourage employers from imposing overtime work.
  • California labor laws are interpreted liberally in favor of worker protection.
Interestingly, the Court held that the DLSE manual is a void underground regulation and not entitled to any deference, but nevertheless applied that standard. Should you have questions please contact at CALSAGA Executive Director Rahn A. Rahn directly at (916) 508-5177 or by e-mail at rrahn@calsaga.org.

It’s the last week to register!

Time is running out to register for Managing Private Security (formerly PPO 101) and Growing Your Private Security Company (formerly PPO 102)!
Our management programs will take place next week in Orange County.

In an ever changing legislative climate, it is essential to ensure that you are complaint with the law and insurance regulations as well as maximize efficiency and productivity. In addition, Managing Private Security (formerly PPO 101) will cover contracts and legal pitfalls, human resources, pricing and profitability and BSIS compliance and audit.
 
Growing Your Private Security Company (formerly PPO 102) is a new program focused on helping PPO companies grow their businesses! Come to learn tips on prospecting, RFP’s, dealing with procurement, pricing, legal deal breakers, insurance concerns, transitions, recruitment and staffing accounts, building employee files and client follow up.

Don’t miss your chance to attend these great learning opportunities!

You can register for one or both days. Registration includes a light breakfast and catered lunch. Registration closes Sunday, April 15th at 6:00pm.

Register today!
Orange County
April 18th – 19th
See complete details and purchase tickets at:
https://calsaga.org/ppo101and102/