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The Most Wonderful Time of the Year: Limiting Liability at Office Holiday Parties

It is that time of the year again, and for most small businesses, that also translates to the notorious office holiday party. Many employees look forward to these parties all year long (mostly due to the food and unlimited spirits, gratis). But what happens when one of your employees drinks a bit too much, and he/she gets the courage to shout obscenities, sexually harass another employee, or drive while intoxicated?

In some of these situations, your company may be held liable for the employee’s conduct. In all of these situations, the company may face a costly legal battle, even if the company is not found liable for the employee’s actions. The best way to prevent these situations is to set out rules and guidelines before the party takes place.

Here are a few options to curb the possibility of alcohol consumption becoming a problem at your office holiday party:

-       serve only nonalcoholic drinks

-       limit each person to 2 “drink tickets”

-       provide cabs for employees to get home

-       if you have a substance abuse policy, make sure your employees know it is in effect even at the holiday party

-       serve food as well as drinks, as food consumption will deplete the effects of alcohol

-       stop serving alcohol 1 hour before the party ends

-       discourage “after-parties”

-       make sure drinking age limits are complied with

Planning ahead and anticipating potential issues is the best way to ensure a safe and legally uneventful holiday party.

If an employee does become a problem at an office party, what liability does the company hold?

Drunk Driving

In Ohio, the most common view is that the company is not liable for injury caused to third parties as a result of an employee’s intoxication and negligence.  However, it is likely that in a lawsuit, the injured party would name the employer in an attempt to evoke some type of settlement (to avoid defending a lawsuit).  The outcome is different, however, if your party takes place at an outside location (the bartenders are responsible for discontinuing service to intoxicated persons) or if your business holds a commercial liquor license.

Workers’ Compensation

Most Workers’ Compensation policies prevent an employee from collecting workers’   compensation    benefits   if alcohol causes the injury.  However, if an employee injures himself/herself during a stunning rendition of the tango, and workers’ compensation does not cover the medical expenses and time off, then the employee will likely go after the employer for negligence.

Sexual Harassment

Because alcohol tends to induce bravery  in  people,  sexual harassment also   becomes   a  problem  at  holiday parties.  Since many Courts consider a holiday party to be an extension of the workplace, an employee may sue the employer if another co-worker or supervisor is sexually harassing him/her. If your company does not have a sexual harassment policy in place, then you should try to implement one before your holiday party.  At a minimum, this will show the Court that your company has taken appropriate initial steps to prevent sexual harassment.  Also, re-visit the dress code and remind employees to follow it, even at the office holiday party.

Other Possible Party Concerns

Any kind of contribution from employees for the holiday party should be voluntary. Any employee who chooses not to contribute monetarily should not be excluded from the celebration.

Door prizes or drawings could be considered     prohibited       gambling.

Make sure all such games comply with state law.

Office “Secret Santa” and other types of gift exchanges need to comply with company ethics and conduct standards.

Make sure employees are careful when decorating for the party. Mandate that they use a stepladder to put up high decorations. Do not hang tinsel on computers or other heat sources.  Do not decorate emergency exit signs.  Make sure all decorative lights are turned off before leaving the office.

Keep party food fresh by storing in a refrigerator before the party.  Use paper cups, not glass cups.  Move computers and other electronics out of range of spillages.

With these guidelines in mind, an office holiday party can be great fun and a wonderful way to boost morale for your employees. Enjoy it and have a Happy Holiday!

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