It’s the most wonderful time of the year, full of holiday cheer but, unfortunately for some employers, also legal risks and potential liability. A company’s annual holiday party, gala or event can quickly turn from a celebration into a headache. That’s why now is a good time for employers to ensure they have policies in place on the overconsumption of alcohol and harassment. Additionally, employers should consider their possible exposure and ways to reduce liability based on the actions of employees and staff at their event.

While your annual party may not be during work hours or even hosted at your place of employment, as an employer-sponsored event, the employer may still be liable for what occurs, including inappropriate conduct and conversations. Employers should be mindful of potential physical injuries but also instances of perceived or actual sexual harassment during various events. Sexual harassment can come in the form of unwanted comments, disrespectful language and sexual advances, as well as physical harassment. Such conduct can lead to a tense and even hostile environment, and the behavior could carry over to the workday and outside of the specific event. This conduct can come from employees, supervisors or even clients and/or guests that are invited to a holiday party.

As we noted last year, employers must be mindful of and regulate, to the extent possible, the overconsumption of alcohol at holiday events. While “Social Host Liability” may have some limited application, there are civil damages and liability that employers may face in various jurisdictions. Employers should recognize the potential liability associated with the consumption of alcohol supplied/sponsored by the employer, especially in instances in which an employee’s attendance at a holiday event is mandatory. Employers could be brought in to defend litigation resulting from employee negligence at or after company events. These lawsuits could lead to hefty settlements and/or the employer incurring legal fees.

So, as we head into these last few weeks of holiday cheer, here are some tips to consider:

• Be inclusive of all employees. Do not decorate with seasonal décor that favors one religion or religious group over another.
• Be aware of your company’s social media policy and advise employees of what should and should not be posted on social media.
• Making holiday party attendance voluntary.
• Think about the hours and location of the event. A holiday party that is slated for 2-5 p.m. may be better than one from 5-8 p.m.
  • Use alcohol/beverage tickets or stop serving alcohol an hour before the event ends.
  • Limit the type of alcohol that is served.
  • Be clear on the guest list and whether the event is open to minors or individuals under the age of 21 who may be exposed to alcohol.
  • Consider having the event at a local restaurant rather than a bar or at someone’s house.

• Send out clear guidance on any policy against drinking and driving and/or the overconsumption of alcohol.
  • Provide lodging options for your employees if the location is far away from home or office location.
  • Provide transportation options to reduce the risk of employees driving.
• Remind your employees of appropriate holiday party behavior.
  • Send out guidance to all employees reminding them of the company’s zero-tolerance policy on discrimination and harassment.
  • Remind employees of the company’s complaint reporting procedure should an issue arise.
  • Remind managerial staff that they must act professionally and, if they witness any inappropriate behavior, they are to report it immediately.
  • Remind employees that, if they see something, they should say something. Even if an employee is uncomfortable speaking up in a certain situation, they should be able to go to a supervisor to voice any concerns.
  • If a complaint is made, make sure that it is well documented and investigated promptly.
  • Consider having sober monitors.

The holiday season is a joyous time. Everyone has gotten through the year, and now is a time to celebrate successes and victories before heading into the new year. While the list of precautions may seem daunting at first, these suggestions are provided so that everyone can have a safe and happy holiday season. 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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