Who’s excited for the company holiday party?! Probably not your friendly neighborhood employment lawyers who will tell you that employees imbibing together can create risk for employers. This doesn’t mean that no fun can be had, but it does mean that employers should do what they can to manage risk in connection with end-of-year celebrations.

An employer’s liability for the negligence of its employees following the consumption of alcohol furnished by the employer is called “social host” liability, and varies by state. Maryland and Virginia’s social host liability extends only to the service of alcohol to minors (see Md. Code Ann., Crim. § 10-117; Va. Code §4.1-306). DC and Delaware statutes do not enumerate social host liability. The Maryland Court of Appeals has increased liability on those serving alcohol to minors for any death resulting from the minor’s drunk driving, and plaintiffs push to expand the parameters of social host liability to include social, commercial, or employer liability for the actions of adults. Even where state law does not provide for employer liability in these scenarios, employers may have to deal with defending lawsuits resulting from employee negligence at or after company events, and the cost and disruption that a lawsuit brings.

Employers are not just at risk of issues arising out of employee negligence at or after company events. When employees are under the influence of alcohol, lowered inhibitions may lead to increased risks of harassment. In today’s #MeToo era, employers are likely already aware of the potential for workplace harassment, and can reduce the risk of inappropriate with policies designed to limit opportunities for overconsumption of alcohol. Employers also risk tarnished reputations if an employee posts to social media pictures of inappropriate activity at a company-sponsored event. In all cases, it is a good idea for employers to address the overconsumption of alcohol by employees.

Among the precautions employers can consider are:

• making attendance voluntary;
• having clear start and end times for the event;
  • Early-afternoon start times when employees are working prior to attending holiday parties which limit opportunities for before-parties.
  • Cutting off alcohol service at some time prior to the end of the event can lower the likelihood that employees will leave under the influence.
• holding events at a location where drinks are served as opposed to someone’s home where employees serve themselves;
• avoiding drinking games;
• serving plenty of food;
• issuing a certain number of drink tickets;
• assigning someone to serve as a sober monitor who will stay until the end and to coordinate rides for those who appear under the influence;
• providing transportation, or reimbursing employees for transportation, to and from the event; and
• sending a message reminding employees:
  • of the company’s zero tolerance policy for drinking and driving, and harassment;
  • that if they take personal photos or videos, to remember that people have different sensitivities with respect to posting of personal information, and to respect that privacy;
  • to monitor their alcohol consumption at the event; and
  • to arrange a safe ride home.

The holiday season is a good time for employers to ensure that they have a policy in place around overconsumption of alcohol at employer-sponsored events, and ensure that harassment and social media policies address issues arising at such events. Happy Holidays!

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