COULD YOUR COMPANY OUTING LEAD TO COMP CLAIMS?

Company picnics, outings and outdoor team-building exercises can help employers build camaraderie and cooperation among employers. But whenever you mix employees and recreation, injuries can occur. When are they compensable?

Workers' compensation generally covers all employee injuries or illnesses stemming from work-related activities. OSHA guidelines consider an employee's injury or illness a recordable workplace incident if it results from an event or exposure in the "work environment." Naturally, the "work environment" includes employer's premises. OSHA also includes in its definition "other locations where one or more employees are working or are present as a condition of their employment. The work environment includes not only physical locations, but also the equipment or materials used by the employee during the course of his or her work."

OSHA lists several exceptions to the work-related injury rule, including injuries or illnesses that "...result solely from voluntary participation in a...recreational activity such as blood donation, physical examination, flu shot, exercise class, racquetball, or baseball."

Often, attendance and participation at company parties, outings and other events with a social aspect can fall into a gray area. Is participation truly voluntary, or is it expected – and therefore job-related? The answer could hinge on a few factors:

Did the event occur during regular working hours?

Did it occur on company premises?

Is attendance expected or strongly encouraged?

Does the employer pay the entire cost?

Were clients or prospects present?

Was any kind of training conducted at the event?

If you answered yes to any of these questions, your event may be considered work-related. Any employee illnesses or injuries caused by participating could fall under the workers' compensation bargain, unless states have specific rules.

California's workers' comp statute specifies that injuries arising out of voluntary participation in recreational activities are not compensable, even if the employer pays some of the costs. However, if the employer directly or indirectly requires participation and gains substantially from the activity, then it could be considered work-related.

The following action steps can help you avoid workers' compensation liability for a company outing, picnic or party:

Hold the event outside regular working hours.

Hold the event off-premises.

Events should be infrequent – a Friday "happy hour" that becomes a regular, weekly event could be seen as obligatory or expected.

Look for volunteers to plan the event, rather than appointing someone.

If you will be serving alcohol, hire a licensed caterer or bartender, and make sure he/she has liability coverage. Having a cash bar rather than an open bar could further minimize your exposure to claims if someone gets injured, or injures someone else, after drinking.

At the event, do not cajole employees into participating in any games or events. Participation should be completely voluntary.

If you plan a team-building event, off-site training session, party involving clients or other event that will benefit the organization, it will likely be considered work-related for the employees involved and your workers' compensation coverage will apply. We can point out potential safety and liability exposures and help you avoid them. For more information, please contact the PCOC Insurance Program department of Jenkins Insurance Services at (877) 860-7378 or, email us @ ProPest@Leavitt.com.