Holiday Parties – Be Careful with the Good Cheer
This is the time of year when many employers host holiday parties for their employees and sometimes their employee’s families as well. Unfortunately, with the good cheer comes a minefield of potential legal liability – especially when alcohol is served. Some of the legal claims that can arise include:
Sexual harassment claims resulting from intoxicated employees making unwanted sexual advances or gestures or using offensive language.
Injuries to third parties. Employers also face liability when intoxicated employees leave the office party. Employers who allow employees to drink and drive can be liable for the intoxicated employee’s actions if the injured party can prove that the intoxication occurred while the employee was at the employer’s business.
Premises Liability. Employers are also vulnerable to premises liability claims if the event is held at the office. These claims tend to occur when intoxicated employees fall and injure themselves at the party.
Considering the above, employers should carefully consider whether alcohol should be served at office parties. As banning alcohol entirely is often out of the question, then some advance planning can reduce the legal risks. For example, alcohol can be limited in quantity and type, thereby minimizing the risk that employees will overindulge. Employers can also offer taxi cab rides home and/or encourage carpooling with a designated driver for those who will be drinking. When the employer takes steps to minimize alcohol consumption and reduce the risk of alcohol related incidents, a good time is far more likely to be had by all.
Other Ways to Reduce Potential Liability:
Convey to employees that attendance at the event is voluntary.
Avoid award presentations, bonus presentations, or other employee recognition awards at the party because these activities may suggest that the event was mandatory and employees were there for business reasons.
Limit the length of the event to two or three hours and make it clear when the event ends.
If you do serve alcohol, consider limiting the types of alcohol served. Beer and wine may be sufficient.
If an open bar will be provided, limit the number of hours the bar is open and have it close at least an hour before the party is scheduled to end.
Offer plenty of food rich in starch and protein since these types of food slow the absorption of alcohol into the bloodstream.
Have non-alcoholic drinks available during the entire event.
Maintain an alcohol and drug use policy in your Employee Handbook. The policy should indicate that alcohol is not allowed in the workplace except at company sponsored events and that when alcohol is served employees are expected to maintain composure and act responsibly.
Send a memo to each employee prior to the office party reiterating the terms of the Handbook’s alcohol and drug use policy.
Best wishes for a happy, healthy holiday season!