When the weather outside is frightful, company holiday party season can be so delightful. The soirees are a great opportunity for colleagues to celebrate everyone’s hard work and get to know one another better. But the mixture of excitement, alcohol and the resulting lowered inhibitions can result in a legal headache for employers, who can be held vicariously liable for the actions of its staff.

A determination of an employer’s liability for the conduct of its employees following the consumption of alcohol furnished by the employer, called “social host liability,” varies by state. Washington, D.C. and Delaware statutes do not enumerate social host liability. 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).

The Maryland Court of Appeals has expanded liability on those serving alcohol to minors for any death resulting from the minor’s drunk driving. Plaintiffs have pushed to expand the parameters of social host liability even further 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, as well as the cost and disruption that a lawsuit brings.

All of which is to say it is a good idea for employers to address potential overconsumption of alcohol by employees. A few steps employers should consider are:

• Making attendance at the company holiday party voluntary
• Providing clear expectations of acceptable behaviors by 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
• To arrange a safe ride home
• Having clear start and end times
• Early-afternoon start times during the normal workday limit opportunities for “pregame” drinking before the company event
• Cutting off alcohol service prior to the end of the event can lower the likelihood that employees will leave under the influence
• Serving non-alcoholic beverages
• Serving plenty of food
• Limiting use of an open bar (consider issuing a certain number of drink tickets instead)
• Providing transportation, or reimbursing employees for transportation to and from the event, especially for employees who appear to be impaired
• Choosing decorations and activities wisely
• Be sensitive that employees may practice many different faiths and religions, and no religion should be discriminated against

The holiday season is a perfect time for employers to confirm they have a policy around employer-sponsored events. Ensure that your harassment and social media policies capture issues that may arise at such events. Confirm those policies include avenues for reporting concerns related to violations of company policy, including sexual harassment.

Happy Holidays!

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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