Is Your Security Guard Company Leaving Dollars On The Table?

(And The 2 Reasons Why You Can’t Keep Quality Guards At Your Company)

Ken DuBose, Business Link Solutions, CALSAGA Associate Member

Many articles in Security Guard Trade Magazines, including the Californian report that the turnover rate of security guards at companies is unbelievably high. In fact, the turnover rate has been reported to be as high as 300%. Many of these industry publications blame the up to 300% turnover rate on low wages and lack of affordable health benefits.

Articles in other publications and personal conversations with guards from different companies, cite guards frequently switching companies to chase $.50 to $1.00 or more per hour wage increases and not having access to affordable health benefits.

What can you do to help keep quality security guards on the job and attract trained, quality guards in the future? Business Link Solutions has a solution that helps with the low wage and affordable health benefits problem.

First, even if you are offering a major medical plan at your company, many of your guards at their current wage structure won’t participate if they must pay a percentage of those monthly premiums. Guards making $16.50 – $20 an hour usually can’t afford to have $50 to $100 deducted from their paycheck to pay for Healthcare/Medical benefits, even if the employer is paying 50% to 70% of the bill, with only supervisors and higher management employees utilizing the benefits.

We help to solve the problem….

In 1978 Congress enacted the Section 125 law that allows American companies the ability to pre-tax employee benefits. This enables your business to reduce the amount you pay in FICA payroll taxes, allowing you to keep more of your money in your company’s pocket.

Additionally, ALL your qualified full-time employees (not just the supervisors) will have access to important benefits designed to help them be healthier and with those benefits being pre-taxed, full-time eligible employees will generally see a net increase in their take-home pay.

With our specialized Section 125 plan… if you have at least 5 qualified full-time employees, your company will likely be qualified to participate. Your company will enjoy FICA payroll tax savings of over $500.00 per employee per year. That can mean major savings for you and your business.

Because of the Section 125 pre-taxing process, your qualified full-time employees will enjoy an average of over $80 to $100 a month increase in their take-home pay and will receive valuable benefits designed to help make them happier and healthier.

• With our specialized Section 125 plan… at a minimum, it will save your company over$500.00 per employee per year on your FICA payroll taxes
• Your qualified full-time employees will receive important benefits like Zero-dollar co-pays on Dr’s visit, Prescription Drugs, Urgent Care Centers and much more… and will increase their net pay by an average of over $80.00 dollars a month
• It will not interfere with your major medical plan in any way. In fact, it will complement it and give your employees even more flexibility and choices.
• And the best part? Since the tax savings completely pay for the benefits, it is a net profit for your company and employees.

If you have questions and to get more information, please contact…

RICHARD “RICK” KNIGHT

Regional Vice President/Sales Team RVP

M: (949) 519-0022

O: (866) 399-1376

Rknight@BusinessLinkSolutions.net

www.BusinessLinkSolutions.net

YouTube Link – BLS The Champ Plan – Rick Knight

YouTube Link – AffordaCare TV Commercial (below)

https://youtu.be/-SnLUK7S_nE?si=TZ-QBwpx90L80ddA

https://calendly.com/kendubose

 

“Helping you get back the money you deserve!”™

 

CALSAGA MEMBER SPOTLIGHT

Ashlee Cervantes, CALSAGA Ambassador Committee Chair

The CALSAGA Ambassador Committee is delighted to feature MPS Security in this quarter’s Membership Spotlight. MPS Security offers an extensive range of services, including close protection, personal and residential security, event security, industrial and commercial property security, access control, foot and vehicle patrols, alarm response, loss prevention, risk management, active shooter survival training, and workplace violence training compliance (SB553).

MPS Security is dedicated to delivering exceptional security services that protect the people, assets, and reputations of their clients. Committed to excellence, the team at MPS works collaboratively to build long-term relationships by understanding unique challenges and crafting customized security plans. Their diverse team of seasoned professionals offers comprehensive protection and ensures peace of mind through proactive risk management and unparalleled service.

With 12 years as a CALSAGA member, the executive management team at MPS Security collectively brings an impressive 113 years of security industry experience to the table. Their wealth of knowledge and expertise significantly benefits their clients and the broader security community.

Reflecting on the future of the industry, MPS Operations Manager Robert Ramirez notes, “The security industry faces an uncertain future with California’s ever-changing economic and labor landscape. The need for dedicated and trained personnel is quickly becoming the biggest challenge for our industry. CALSAGA’s commitment to providing the resources and materials to train our employees, along with their advocacy and voice for the security industry, makes it easier to face these challenges.”

Mr. Ramirez further expresses, “I believe CALSAGA is a beacon of hope for the security industry. Through its educational and training resources and firm, positive voice in the state legislature, CALSAGA empowers all PPOs to be industry leaders and provide quality service to all who seek their services.”

In conclusion, MPS Security stands out as a comprehensive security firm, offering top-tier physical and asset protection through their Executive Protection Agents and Uniformed Security Officers. They truly exemplify the industry’s best in class for a medium-sized firm.

Applying Employee Incentive Programs in the Security Industry

Chris Shumaker, TEAM Software by WorkWave, CALSAGA Network Partner

Although United States employers added 206,000 jobs to the economy, the unemployment rate rose to 4.1%, reported the Bureau of Labor Statistics in June 2024. These facts coupled with the low labor force participation rate shows that the job market is still tight for employers and more in favor of job seekers who are more likely to switch jobs to achieve better benefits.

While the tight job market has impacted employers in various industries, security contractors could be particularly vulnerable to high turnover rates and have trouble attracting qualified guards, which makes retention and hiring efforts top-of-funnel priorities for industry professionals.

However, security companies that focus on incentive programs that aid in recruitment and retention efforts may be in a better position to offset some of the challenges impacting their competitors, who will mostly also be seeking and trying to retain qualified guards.

Actionable opportunities to improve retention

To help offset these high turnover rates, employers can invest in incentive programs by recognizing the efforts made by staffers and rewarding their valuable contributions. A robust benefits program helps to acknowledge the efforts employees bring to the workplace while letting companies demonstrate their commitment to well-being and growth.

Examples of incentive programs and benefits can involve monetary incentives, such as bonuses, cash rewards, profit-sharing and referral bonuses. Performance incentives can include investing in career development, flexible working hours or conditions. Other non-monetary incentives consist of additional vacation days and travel incentives, in addition to career development stipends or skills development courses.

Although some of these opportunities may be difficult to implement due to monetary constraints, earned wage access, also referred to as on-demand or flexible pay, is a proven incentive for retaining employees because it gives workers access to part of their paychecks in advance of their payday, so long as those hours have already been worked and logged.

Why incentive programs work

Creating a company culture rooted in appreciation and employee motivation can improve retention rates while making companies more appealing to talented workers. Well-designed company incentive programs can boost job satisfaction, performance, commitment, engagement and trust in management.

Companies with high levels of employee engagement reported profits that were 23% higher than companies with low levels of employee engagement, according to a Gallup study. Aligning an incentive program that meets the needs and expectations of employees can create a more ideal work environment, where employees are encouraged to excel.

By strengthening employee commitment to organizational goals, workers can feel more engaged in their work while fostering trusting relationships amongst leaders who recognize and value employee contributions.

Measuring the effectiveness of incentive programs

The common challenge with initiating incentive programs involves finding a way to measure its success. Even though HR professionals use exit interviews for feedback to help evaluate their effectiveness, it can be difficult to measure the impact of an incentive program.

One of the most straightforward methods involves opening the channels of communication. Encouraging employees to communicate more with their managers and team leaders ensures that everyone can productively voice their concerns.

This can open the door to routinely scheduled coaching sessions where supervisors can give feedback while identifying areas for improvement and providing support for employees who want to improve. Setting aside time for employee coaching also provides greater clarity of responsibilities, as employees will then better understand their responsibilities and priorities.

If your organization is struggling with declining employee retention rates, creating an incentive plan is worth the effort. Not only do these programs help improve overall employee performance and retention, but they also help your business stand out as an employer of choice.

Chris has been supporting customers for the bulk of his entire career. He joined TEAM Software by WorkWave in January 2023, and since then he has built connections with customers by understanding their needs, educating them on the software and promoting value through customer experience.

Cal/OSHA’s New Indoor Heat Regulations Was Approved 7-23-24 and Went Into Effect Immediately

Shaun Kelly, Assured Partners , CALSAGA Preferred Broker

Hope everyone is doing well and staying cool.

Change is inevitable!

Cal/OSHA’s new regulations, “Heat Illness Prevention in Indoor Places of Employment” [Title 8, Section 3396] was approved 7-23-24 and went into effect immediately to protect indoor workers from heat illness. The new regulations apply to most indoor workplaces where the temperature reaches 82 degrees Fahrenheit, such as restaurants, warehouses, and manufacturing facilities.

I have attached a brief summary (with resource links on the last page) and Cal/OSHA’s current sample written plan in case it’s helpful.

If you feel that your employees are exposed to the indoor heat exposures, please review the attached, implement the plan, provide training and document the training.

Please be safe and let us know if we can be of assistance.

Take care

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.

Earlier this year CALSAGA made a contribution of $100,000 to join with other industry associations and chambers of commerce to support FixPAGA.

Please see information below from CALSAGA Legal Advisor Bradley, Glemich + Wellerstein, LLP with good information regarding PAGA reform!

California employers can breathe a sigh of relief (for once)! On June 27, 2024, California Gov. Newsom signed Assembly Bill (AB) 2288 and Senate Bill (SB) 92, significantly reforming the 20-year old Private Attorneys General Act of 2004 (PAGA). While employers may not have gotten rid of this one-sided adversary, they’ve finally been given some tools to defend PAGA claims. As a result of this new law, the November ballot initiative to repeal PAGA has been withdrawn.

The PAGA reform will apply to civil actions brought on or after June 19, 2024, and will not apply to matters in which notice was filed before June 19, 2024.

Here are the highlights about PAGA reform:

Standing

AB 2288 provides that a plaintiff must have personally suffered each Labor Code violation they seek to pursue on behalf of other aggrieved employees within one year of filing the required administrative notice (PAGA Notice) with the California Labor & Workforce Development Agency (LWDA). This is a significant win for employers as previously, any employee that suffered even one Labor Code violation was entitled to file a PAGA lawsuit for all alleged violations, even for those the employee did not suffer.

PAGA Penalties 

AB 2288 reforms PAGA’s penalty structure by incorporating new caps and reductions, as follows:

1. For employers who proactively take steps to comply with the Labor Code before receiving a PAGA notice, the maximum penalty that can be awarded is 15% of the applicable penalty amount.
2. For employers who take steps to fix policies and practices after receiving a PAGA notice, the maximum penalty that can be awarded is 30% of the applicable penalty amount.Examples of such reasonable steps include, but are not limited to, conducting periodic payroll audits and taking action in response to the results of those audits, disseminating lawful written policies, training supervisors on applicable Labor Code and Wage Order compliance, and/or taking appropriate corrective action with regard to supervisors as needed. Whether or not the employer took reasonable steps will be a decision left to the discretion of the court, which can take into account factors such as the size and resources available to the employer, and the nature, severity and duration of the alleged violations.
3. Penalties for wage statement violations under Labor Code Section 226 that do not cause injury (i.e. misspelling of company name or forgetting to add “Inc.” on the wage statement) will be capped at $25 per employee per pay period. Note: there is no cap on penalties for a failure to provide wage statements.
4. The penalty for isolated errors that do not extend beyond the lesser of 30 days or four consecutive pay periods will be capped at $50.
5. Penalties will be reduced by 50% for employers who pay employees on a weekly basis (such as private patrol operators).
6. Creates a new penalty ($200 per pay period) if an employer acted maliciously, fraudulently, or oppressively. However, this penalty will be assessed only after (1) a court or agency “has issued a finding or determination to the employer that its policy or practice giving rise to the violation was unlawful” within the 5 years preceding the allegation violation, or (2) the court determines an employer acted maliciously, fraudulently or oppressively.
7. Employees may not receive penalties for “derivative” violations (in other words, PAGA penalties when an employee has already received penalties for the underlying violation) for (1) failure to timely pay wages at termination (i.e., Labor Code §§ 201-203); (2) failure to timely pay wages during an employment (i.e., Labor Code § 204) if the violation was neither willful nor intentional; or (3) wage statement violations (i.e., Labor Code § 226) that are neither knowing or intentional, or a failure to provide a wage statement.
8. The allocation of penalties to the LWDA will decrease from 75% to 65%.
9. The allocation of penalties to the aggrieved employees will increase from 25% to 35%.

Employer Cure Provisions

The reform contains various cure provisions and separate processes for small and large employers, as follows:

Small employers (with fewer than 100 employees during the period covered by the PAGA Notice) may submit a confidential proposal to LWDA to cure the alleged violations. If deemed necessary, the LWDA will have the ability for a conference with the parties. The employer will be provided time to complete the cure, and the employee will be given an opportunity to respond. All proceedings will be deemed confidential.

Large employers (with at least 100 employees during the period covered by the PAGA Notice), will be able to request an early evaluation conference, which will include a statement regarding whether the employer intends to cure any or all of the alleged violations, and a request for a stay of court proceedings. While the proceedings are stayed, the parties will work with a neutral evaluator assigned by the court through a multistep process designed to help resolve the dispute.

Importantly, an employer may only use the notice and cure provisions once in any 12-month period for violations of the same provisions set forth in the PAGA Notice.

Strengthening Enforcement Agency

The Administration will pursue a trailer bill to give the California Department of Industrial Relations (DIR) the ability to expedite hiring and filling vacancies to improve and expedite enforcement of employee labor claims.

Judicial Discretion (Manageability)

AB 2288 expressly provides the courts with the power to manage PAGA claims, including the discretion to limit the evidence to be presented at trial or “otherwise limit the scope of any claim filed pursuant to this part to ensure that the claim can be effectively tried.”

Injunctive Relief

For the first time, AB 2288 allows PAGA plaintiffs to seek injunctive relief.

Employer Takeaway 

PAGA reform should be viewed as an opportunity – employers are given the chance to lower and cap potential exposure, and in some cases, cure the violations before penalties even arise. The new law is intended to incentivize employers to be proactive and stay compliant, so you are encouraged to take action immediately.

Employers should become familiar with the new law. Take reasonable steps to become compliant, including conducting regular audits, ensuring policies and procedures are lawful and disseminated to employees (and documented), train (and retrain) supervisors on all applicable wage and hour issues, pay employees correctly, and correct/modify/change anything, as needed.

If you have any questions about how this new law may affect your business or need assistance conducting audits, preparing compliant policies or revising your practices or policies, please contact your attorneys at Bradley, Gmelich & Wellerstein LLP. We are here to help.

 

Jaimee K. Wellerstein, Esq. is a Partner and the firm’s Employment Team Head. Representing employers in all aspects of employment law, Ms. Wellerstein collaborates with her clients to develop proactive business and legal strategies to try to avoid workplace conflict and employment disputes. She provides legal advice and counsel to numerous businesses, including conducting individualized training programs for both management and employees.

Ms. Wellerstein performs internal audits of her clients’ employment practices to ensure compliance with the rapidly-changing world of employment laws, and guides investigations of employee allegations regarding harassment, discrimination, and employee misconduct. When litigation cannot be avoided, Jaimee K. Wellerstein aggressively defends her clients against employment law claims in the state and federal courts, as well as at administrative hearings, arbitrations, and mediations. Having defended numerous representative and individual lawsuits on behalf of her clients, Ms. Wellerstein is a skilled litigator and negotiator with a broad spectrum of experience upon which to draw.

A frequent speaker on numerous topics, including employment law and contract law, Ms. Wellerstein regularly conducts training seminars and programs for managers and employees in all areas of employment practices and policies.