1. I'll take the laptop with me to watch a good movie and navigate the internet. I’ll sleep at least 3 hours to be ready and fresh for my tomorrow’s morning other job. Boss: “Do you want me wearing a black t-shirt ?” “I will use my gun…” “I’ll patrol with my car…” “Go home and relax, I’m a security expert!” “Your bussines is secure and well protected with me!” Your business or your association hires a person to perform Security duties...

2. ...and you believe that are taking a wise decision to save money! But you are exposing your business or association to more risk, liabilities and legal problems, a decision that is only in favor of the employee and not your organization. Do you know why?

3. IN-HOUSE SECURITY VS SECURITY COMPANIES

4. Pros (+)Cons (-) If you hire directly the employee your cost may be lower and you may pay higher the person that will perform the duties. If you decide to pay him/her with a 1099 form as a independent contractor you are violating the law because if you assign the schedule, you supervise and you direct them, legally they are your employees, so when you are paying them with a 1099 form you are raising a red flag to the IRS that may go against you for misclassification of employees and for avoid employer taxes. If you pay him/her as your employee with a W2 form your cost will be higher because of the mandatory overhead cost as follow: FICA, FUTA, social security, Medicare, liability insurance, worker’s compensation insurance. Your Liability insurance cost will increase because the risk and exposures are different that your business classification. Your Worker’s Compensation insurance cost will increase because the code classification for persons performing security job is the same rate of a Police Officer, and goes around 3.80 to 4.21 percent per dollar paid! If you do not report them as performing security duties if any accident happens you won’t be covered! Sounds logical to you that at 2 am your worker classified as a “clerk” felt off at the business parking lot? No? Neither for the insurance company!

5. Pros (+)Cons (-) You will be legally open to be sued by any of your personnel performing security duties because they felt off, where attacked, had an accident the day after spend the whole night at your location etc. The legal cost will go out of your pocket moreover if no covered by any insurance policy! You must deal with personnel management, as last hour sick calls, unjustified absences, tardiness etc. Who will replace your worker if any of the above situation happens? Will have you enough back up personnel to cover? In the future you will be open to pay back all the employer taxes avoided after any IRS or Florida department of Revenue (FLDOR) audit if you paid them as independent contractor You must write policies and contingency plans as well as operating procedures manual to direct your workers security job. You must conduct training programs in order to maintain your security personnel updated and trained. You must deal with all the Human resources related management problems as payroll, vacations, transfers, personal problems, medical leaves, light duty etc.

6. Pros (+)Cons (-) You must supervise your worker, moreover during night hours and week ends. You will be responsible of the consequences of any improper behavior of your worker (vicarious liability): Personal attacks, verbal discussions, threat to others, personal injuries, self shooting or third party shooting, battery, improper towing etc. You must control the schedule to avoid that your worker only works 40 per week. If work more than 40 hours per week you must pay time and a half overtime rate which will increase your cost. If you pay him/her a flat regular rate, you are violating a Federal law and leaving a door open to a Lawsuit! After all the above, what do you think now?

7. The only person benefited by this decision will be the person performing the duties not your business or association! You must focus on your organization management and duties. Rely your security problems to a professional Security company! As you may realize, are more the cons than the pros to such decision!

8. SECURITY COMPANYIN-HOUSE WORKERS Officers properly licensed by the State of Florida May be Basic training to perform Security dutiesIf Licensed by the State of Florida Properly screened by the company and FBIIf Licensed by the State of Florida Authorized to carry a gunIf Licensed by the State of Florida On site Supervision on an identified patrol carNo Several personnel available to cover absencesNo Liability insurance PolicyNot to cover security related work Your property will be additional insured by policy No Worker’s Compensation insuranceNot to cover security related work Training program availableNo Human resources managementNo Night dispatcher controlNo Remote supervision by CCTVNo On site supervision with deggy systemNo Additional and specific post trainingNo Can deal with the overtime and avoid its cost.No

9. Example: You hire a person to perform security duties or use one of your current workers: You will pay him $ 8.00 per hour Your overhead cost (FICA, FUTA, Social Security, Medicare, Liability Insurance, Worker’s Compensation Insurance, Payroll cost), will be approximately + $ 1.60 per hour. Real cost of your worker per hour $ 9.60 ($ 8.00 + $ 9.60)

10. Personnel management Human resources management 24 hour Supervision in an identified Patrol car. Liability insurance protection and additional coverage to your property Worker’s compensation insurance protection Vicarious liability protection Legal protection Training program Payroll services Customer service Conflict resolution Protection, expertise Best of all: Peace of mind BLACK HAWK PROTECTION SERVICES INC. for a rate of $ 2.40-2.70 more per hour will give you:

11. What are my potential cost and monetary risk? I’m really saving money? Letter from attorney to respond any employee claim +/- 2,500.00 Medical bill for minor injuries if no protected by worker’s compensation insurance +/- 4,000.00 Law suit cost for accidentDepends of the injuries Monetary compensationDepends of the injuries and worth in case of disability Labor related Law suitBetween $20,000 to 30,000 on mediation Labor related Law suit on court if you win Between $30,000 to 40,000 if you are the prevailing party Labor related Law suit on court if you lost Between $60,000 to 80,000 if lost the case and depending of the claim the amount may be higher.

12. What are my potential cost and monetary risk? I’m really saving money? Labor lawsuitAre placed on Federal courts and allow suing the business and the owners personally. Paying employees as Independent contractor (1099) Open door to an audit in which you must pay all the non paid labor and unemployment taxes. Lack of supervisionDepending of the claim and the situation happened Vicarious liabilityDepending of the claim and the situation happened As a business owner, may I be sued by any injured employee? Under the provisions of Chapter 440, Florida Statutes, an injured worker has two years from the date of the accident to file a petition for benefits with the Division of Administrative Hearings.

13. What are my potential cost and monetary risk? I’m really saving money? What if an employee get injured and your company doesn’t have Workers’ Compensation coverage? Every employer who fails to secure the payment of compensation as provided by Florida’s Workers Compensation Act may not in any suit brought against him by an employee for damages defend the suit on the grounds that the injury was caused by the negligence of the fellow worker or employee or that the injured worker assumed the risk in his employment and/or was comparatively negligent. The Florida Workers Compensation Act insulates an employer against suit for monetary damages under most circumstances where the employer is covered by Workers’ Compensation insurance which is mandatory over 4 employees or more.

14. What are my potential cost and monetary risk? I’m really saving money? Having a worker’s compensation protected employees will avoid If an employee receive Florida workers' compensation following an injury, cannot sue his/her Florida employer for additional compensation in connection with his/her injury. The fastest grooving litigation in the U.S. right now is negligent security. Due to the economic situation the number of Labor related Law suit are grooving every day. Even if you have all the evidences to demonstrate you did right you’ll must involve an Attorney and this will cost you money!