Letter From the Executive Director - Audit 2024
LSBPSE • April 4, 2025
To All Licensed Private Security Companies,
Dear Private Security Industry Professionals,
We hope this letter finds you well. As part of our ongoing commitment to ensuring compliance and integrity within the private security industry, we are initiating the annual audit process for all security companies that held an active company license in 2024.
As we begin this audit year, please be advised of the following key steps and expectations:
- Documentation Request: Your company will receive an initial email requesting specific documents, such as payroll records, employee earnings reports, and other necessary documentation. These records must be submitted to the agency within seven (7) business days of the request.
- Compliance Visit Scheduling: Following a review of your submitted documentation, your company will receive an email to schedule a visit with a compliance investigator. This visit will provide an opportunity for our staff to answer any questions and review your company's current roster to address to ensure compliance moving forward.
- Audit Resolutions: After reviewing payroll records and determining preliminary findings, if applicable, your company will have two (2) weeks to provide documentation to dispute any findings.
- If no findings are determined, the company owner will receive a letter confirming compliance.
- If findings are identified, an informal conference will be scheduled to review outstanding violations. A consent agreement will then be drafted by the Board's legal counsel and submitted for final approval by the Board.
We have thoroughly reviewed our 2023 audit process and have made significant improvements. By implementing an efficient structure and clear deadlines, we aim to conduct our duties with the utmost consideration for all companies while ensuring accountability and compliance across the industry.
We appreciate your cooperation and commitment to maintaining high standards and integrity within the private security industry. We look forward to working with you throughout this process and value your partnership.
If you have any questions or require further clarification, please do not hesitate to contact our office.
Sincerely,
Major Carl Saizan (Ret. LSP)
Executive Director
To All Private Security Industry Stakeholders, We hope this letter finds you well. We are writing to inform company owners on specific requirements for security officers in their employment. Specifically, a company cannot hire a security officer as a 1099 worker. The security officer must be a W-2 employee. Louisiana R.S. 37:3272(A) (18) defines a security officer as “an individual who is employed by a contract security company whether armed or unarmed, to protect a person or persons or property or both…” The U.S. Department of Labor addresses the difference between 1099 and W-2 workers. According to the final rule on Employee and Independent Contractor Classification Under the Fair Labor Standards Act, RIN 1235-AA43, independent contractors are workers “who, as a matter of economic reality, are not economically dependent on an employer for work and are in business for themselves”. This is in contrast to the Fair Labor Standards Act (FLSA)’s definition of employers, employees, and employ. RIN 1235-AA43 defines “Employer” as “any person acting directly or indirectly in the interest of an employer in relation to an employee,” “employee” as “any individual employed by an employer,” and “employ” as “to include to suffer or permit to work.” The IRS considers 1099 individuals as independent contractors who are self-employed. More specifically, under IRS definition, a person is not an independent contractor if they perform services that can be controlled by an employer (e.g., what will be done and how it will be done). This applies even if the person is given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed. If an employer-employee relationship exists (regardless of what the relationship is called), then the individual is not an independent contractor but rather an employee whose earnings, benefits, and other deductions must be reported on a W-2 form. Furthermore, the only subcontractor relationship allowed by the Louisiana Private Contract Security Licensing and Regulatory Law is when one licensed company acts as a subcontractor to another. This is because individuals classified as independent contractors would not be covered under a company’s general liability insurance coverage and thus be liable should they be involved in an incident. Therefore, all security officers in the state of Louisiana must be employees of private contract security companies pursuant to state and federal laws and rules. Companies who currently have 1099 independent contractors performing private security services must immediately transition their personnel to W-2 employees or provide us in writing a detailed timeline for accomplishing this transition. Failure to inform the board of this timeline or comply with the provisions of this letter may cause a company to be in violation of Louisiana R.S. 37:3282 and Title 46, Chapter 9, §903 of the Louisiana Administrative Code, which may result in fines being issued for a company or LSBPSE taking action to suspend or revoke a company license. Our primary goal in outlining this policy is to ensure accountability among private contract security companies and the public and, most importantly, protect individuals, companies, and the public should an incident occur. We are committed to working closely with you to ensure these standards are met and maintained. Thank you for your continued cooperation and dedication to upholding the standards of our industry. Please feel to reach out to us should you have any questions. Sincerely, Carl Saizan (Ret. LSP Major) Executive Director Louisiana State Board of Private Security Examiners
