On Tuesday, March 19, 2024, the City of Milwaukee Common Council approved an amendment to the Milwaukee Code of Ordinances that will affect security guards and businesses who employ them.

The new ordinance, once enacted, will make it unlawful for any establishment operating within city limits to use any security personnel who are not licensed by the city and bonded. Specifically, the ordinance defines security personnel as: any on-site employee or contractor of an establishment, or any employee of a third-party security firm hired by an establishment, whose primary job responsibility is maintaining the security of a premise.

If you are a business owner who employs or hires security guards, you will be required to verify that your guards are licensed and bonded. These requirements will apply to currently licensed businesses and businesses seeking renewal licenses or new licenses. Failure to comply with these regulations could result in sanctions for the security personnel, but also for the businesses employing/utilizing them.

Here’s a breakdown of what you need to know:

MCO 81-104.7: Security Personnel License

1. Any business applying for a new business license or renewal, and indicating the use of private security personnel, must ensure the individual is licensed by the city, and has a copy of a valid bond on file with the license division.

2. The license will be valid for two years and costs $100 per individual.

3. The security personnel must obtain a bond or liability insurance policy of at least $2,000 which must be maintained throughout the license period.

Conditions for Approval

In order to obtain a security personnel license from the city, the person must meet the following conditions:

1. No arrest or conviction record involving a misdemeanor or violation.

2. No felony convictions, unless pardoned.

3. Not a user of drugs or alcohol to the extent of endangerment.

4. No physical, emotional, or mental conditions affecting the ability to perform security duties responsibly.

Penalties for Non-Compliance

Violations of the ordinance will result in fines ranging from $25 to $300, depending on the offense. Non-payment of fines may lead to imprisonment. Multiple violations could lead to license termination and a five-year prohibition on obtaining another license. Although the ordinance aims to set forth the requirements for security personnel, and applies to individuals who seek work as security guards, the provision of 84-55(2) arguably extends the penalties under the ordinance to businesses and their owners. Thus, business owners should know that they and their businesses could be penalized for hiring security guards that are not licensed and bonded.

The ordinance changes are expected to be signed into law by the Mayor’s office in the coming weeks. If your business employs security personnel or plans to do so, it’s crucial to ensure compliance with these new regulations. Failure to do so could result in sanctions, and could jeopardize the issuance or renewal of your business licenses. It is recommended that all business owners operating within Milwaukee city limits conduct an audit of their plans of operation and create a plan of action to complete all due diligence items required by the ordinance if they utilize security guards.

Furthermore, it is prudent for business owners to (1) verity licensure and bond upon hire; and (2) ensure they have a written agreement with the security guard or company that includes representations and warranties that all licenses and bonds are valid and will remain valid during the term of service, and indemnification provisions protecting the business from monetary liability if the security guards breach their obligations or representations under the agreement. As always, business owners should consult with an attorney to ensure they are fully compliant with the requirements imposed by the ordinance.