Question
We are planning to host a holiday party for our employees. Are there any general considerations we should be aware of, particularly if we serve alcohol?
Answer
Holiday parties are a great way for employers to show appreciation for their employees and boost morale. That said, employees must still keep their holiday spirit in check; an employer should not tolerate behavior at a party that would not be allowed at work. Employers should ensure that employees understand the expectations for conduct at such events.
If alcohol will be served, there are potential risks an employer should consider. Allowing employees to drive after consuming alcohol can create liability exposure if an employer knew or should have known that an employee was unfit to drive and allowed him or her to do so anyway, and an accident ensued causing damage, injury or worse. For workers' compensation purposes, consuming alcohol at a company function could be considered within the "scope of employment" if the activity is required or even endorsed by the employer, and any injuries or illnesses sustained could give rise to potential workers' compensation claims. Company parties have also been the backdrop for sexual harassment and other complaints, particularly if employees become unruly and engage in improper behavior while intoxicated. Employers may also need to consider any necessary safety protocols regarding COVID-19 and other communicable diseases.
As alluded to above, an employer should emphasize its policies prohibiting alcohol abuse, harassment, fighting and other misconduct, all of which apply at a company social event. An employer can also consider refusing to serve alcohol to visibly intoxicated people, issuing a limited number of drink tickets, having non-alcoholic drink options and/or offering an alternative to driving (cabs, designated drivers, Uber/Lyft services). Additionally, an employer should review its workers’ compensation and general liability insurance policies and contact the carriers for specific guidance on coverage and liability.