With the Holiday Season in full swing, many employers ask us about the wisdom of holding company parties where alcohol will be served. They generally want to know about the risk involved if an employee drinks too much at the party and misbehaves, or worse, injures or kills someone on the way home. In the interest of answering these questions generally, and with apologies to David Letterman, we are re-running here an article which has appeared in our newsletters several times over the years.

There is always a risk involved in holding any company-sponsored function. Serving alcohol compounds the problems. According to one study, 36% of employers reported behavioral problems at their most recent company party. These problems involved everything from excessive drinking to off-color jokes to sexual advances to fist fights. As a result, more and more employers now hold alcohol-free parties.

Since most employers still want to hold holiday parties, you can reduce your legal liability by observing as many of the following recommendations as possible....