Top Holiday Party Legal Issues for Employers

The holiday season is in full swing, which typically means parties, events, dinners, and everything in between. While employees are getting ready to attend company holiday gatherings, employers are preparing to plan an enjoyable and risk-free event.

There are certain legal issues that employers may face during the holiday party season. It is important to be aware and prepared so the party does not end with employee complaints, injuries, or liability issues. While employers cannot eliminate all potential problems from their holiday party, it is important that they create an environment that limits their exposure to potential legal issues.

Some of the most common legal issues that employers could face during company holiday events are as follows:

Alcohol

Serving alcohol at your company party may come with some risks. Increased alcohol consumption may lead to inappropriate behavior such as fighting or sexual harassment, as well as driving while intoxicated when the event has ended. It is important to keep your employees safe as well as limit your business’s liability.

Consider the following tips to mitigate risk when it comes to providing alcohol at your company holiday gathering:

Hire a professional bartender;
Only offer beer and wine;
Use a ticket system which limits the number of drinks per person;
Limit the hours that alcohol will be served;
Offer a wide variety of festive nonalcoholic beverages;
Offer reimbursement for Uber or other rideshare options;
Provide plenty of food; and,
Remind employees driving company owned or leased vehicles to be especially cautious.

Beyond general host liability concerns, Michigan Employers should be aware of the state’s social host liability law. Under this law, the hosts of social gatherings can be liable for minors being served alcohol as well as for the potential damage they may cause while intoxicated. The host responsible for purchasing and/or serving the minor with alcohol could potentially be faced with misdemeanor charges, and in some cases, felony charges.

Selecting a Safe Venue

Safety should be a top priority when organizing and planning your holiday event. If the event is someplace other than the office, you should select a reputable, fully insured venue that provides safe and accessible accommodations for all guests, including those with disabilities.

Is Everyone Invited? Preventing Discrimination Issues

More than likely, employers employ individuals with diverse backgrounds and religions, so it is important to be as inclusive as possible when planning your event. The event should not be celebrating a particular holiday but rather celebrating the holiday season generally and the individuals that work for the company. Avoiding terms and decorations that are associated with specific religions will help foster a more inclusive atmosphere for all the employees.

Liability for Sexual Harassment

When employees are relaxed and less inhibited in a social setting, it may be easy to forget that workplace conduct still applies, even at a holiday gathering. It is important for employers to model appropriate behavior and stop inappropriate behavior if they see it happening. If instances do occur, take all complaints seriously and investigate promptly.

When, Where, and Whether Attendance is Required

The location, day of the week, and time of the gathering could all potentially affect your employee’s behavior. A holiday gathering at the office may be easier and encourage employees to behave appropriately, but it might not feel like a celebration as much as a gathering would feel at a different location. However, employers should be mindful of potential liability implications associated with on-site gatherings.

To help reduce any potential liability issues (for instance, employees may claim work-related injury or illness) employees should be made aware that attending the holiday gathering is voluntary. Planning the gathering outside of normal working hours and at a location other than the office could help establish that this is a social event, not a business function.

Many employers find it helpful to check with their liability and workers compensation insurance agents to confirm they carry appropriate coverage and/or follow proper protocols.

Employers would be wise to ensure that workplace conduct policies, including those addressing anti-discrimination and anti-harassment, are reviewed prior to the holiday event. Your company may even want to send a link to those policies to employees before the holiday party to remind employees of acceptable behavior. These could include, but not limited to, the following information:

The Business Code of Conduct;
Zero Tolerance Policy;
Anti-Harassment Guidelines;
Substance Abuse Policy; and,
Social Media Policy.

Conclusion

Holiday company parties can be a great way to end the year together by building team spirit, boosting morale, and celebrating the holiday season, but employers should be proactive in the planning process to ensure the event remains problem free. Even if you take all the appropriate actions to help prevent issues, something could still arise and having the proper procedures in place to handle these issues or complaints will help them be addressed in a timely manner and help protect employers, employees, and the business itself.

Written by Beier Howlett

248|645-9400

Practice Areas