THE HOLIDAYS: TIME FOR GOOD CHEER... AND POTENTIAL LIABILITY

Now that it is December, many employers are planning holiday parties, which can be a way of spreading holiday good cheer, motivating employees, and expressing an employer’s appreciation for a job well done. However, such parties can also create the possibility for legal liability. Harassment claims and drunk-driving incidents, for example, are troubling and worrisome elements.
So how can an employer limit liability under the circumstances? Awareness of potential issues and careful planning can help.

  • Alcohol at the party: Having no alcohol at holiday events greatly reduces risks of liability for an employer (e.g., injuries at the party, harassment/improper comments). If the employer chooses to have alcohol at the event, though, it should take steps to limit the alcohol consumed and ensure that sufficient food is served. Additionally, providing cab vouchers or otherwise arranging for employees’ safe transportation home (e.g., having designated drivers or a carpool system) can serve to reduce potential incidents of employees driving while intoxicated.
  • Define the scope of the party: Prior to the event, employees should be told the time the function will end. This is less of an issue when the event is held at the employer’s facility or at a private hall specifically reserved for the occasion than for parties held at a public space shared with other patrons. 
  • Event hosts: Having people at the party responsible for keeping an eye on employees can further minimize an employer’s risk. They can help ensure that no one is drinking excessively or acting inappropriately towards other employees. 

Promotion of event: Attention should be given to the promotion of the holiday party to emphasize its ground rules and the employer’s policies.

This Update is not intended to be legal advice, but rather is intended to inform the reader of problem areas and recent developments in labor and employment law. If legal advice is required concerning a particular matter, your attorney should be consulted.