It’s the Most Wonderful Time of the Year (for Plaintiff’s Attorneys)

Holiday Parties: 4 Areas of Exposure and How to Avoid Liability

Alcohol - Having no alcohol at holiday parties can greatly reduce risks of liability (e.g., injuries at the party, harassment/improper comments).  But the reality is that everyone likes a little holiday cheer (in moderation).  If you choose to have alcohol at your event, here are a few things to consider:

• Try to limit alcohol consumption by offering a variety of alternatives to alcohol and ensure that sufficient food is served.  Also, consider serving only beer or wine and not offering any hard liquor; 
• Offer a limited number of drink tickets and a cash bar.  Non-alcoholic beverages should be free and plentiful; 
• Provide cab vouchers or otherwise arranging for the safe transportation home (e.g., car pools).  This can help reduce the risk of drunken employees driving on the roads;
• Have a luncheon where it is less likely that employees will drink too much (or at all).

Harassment- Although holiday parties are business events, employees sometimes engage in behavior they would typically avoid at work.  Management and Human Resources should look out for inappropriate behavior and respond promptly and appropriately to protect employees from otherwise avoidable incidents and the employer from liability.  This doesn’t mean organizing a sentinel watch, but keep your eyes open.  Even though employees are having fun, this is not the time for HR to look the other way.

Religious Discrimination – employers should be sensitive the variety of beliefs within their workforce.  Be as inclusive as possible when organizing and promoting holiday events. 

Attendance - Attendance should be optional – if attendance is mandatory, you might have to pay your employees for attending.

Holiday parties can be fun and an opportunity for you to express your appreciation to your employees.  Unfortunately, these can have the unintended effects of increasing employee complaints and possibly litigation.  If you’re thinking about sponsoring a holiday party for your staff, plan carefully and hopefully everyone will enjoy themselves. 

If you have any questions about holiday parties or any other employment law issues, please contact me.