Smart Tips for Company Holiday Celebrations

HR Advisor feature article | November 2007

Employers and employees alike often look forward to the holiday season with celebration and good cheer. Sometimes, though, the festivities can become excessive, especially in the form of inappropriate alcohol consumption at company holiday parties. Such employee behavior gives employers real legal headaches.

Suing employers for injuries or damage caused by intoxicated employees is an increasing trend, even if the intoxication may not be directly related to any business activity. Various states have also taken the position that employers are required to take reasonable care to prevent damage and injuries by and to inebriated employees...and should be held legally accountable to injured employees as well as third party groups when they fail to do so.  In addition, even though workers' compensation acts usually exclude injuries related to voluntary social events, that exclusion could give rise to tort claims—such as for negligence—which are available when a workers' compensation law exclusivity provision does not apply.

Consider two relatively straightforward ways to minimize legal problems stemming from company social functions in general: 

• Ban All Alcohol: One approach is not to serve alcohol altogether at any company-sponsored event. Consider inviting employees to bring their spouses and children as a way to shift the party theme towards a family-based event.
• Restrict Alcohol Consumption: A moderate alternative would be to offer limited access to alcohol. For instance, some companies distribute a maximum number of “drink tickets” (e.g. two or three) thus limiting the general amount consumed.  A variation is to serve alcoholic beverages only for a designated timeframe (e.g. one hour before and two hours after the meal).

A variety of other measures exists to exercise “reasonable care.”  Employers hosting social events particularly during the holiday season should consider one or more of the following "headache prevention" measures: 

• Communicate Company Expectations: Circulate "moderation" memos signed by the company President reminding employees to adhere to the expectation that they will behave in a safe and sensible manner throughout the event.
• Emphasize Voluntary Attendance: Communicate clearly to employees that their participation is voluntary. The voluntary nature of participation can be documented in writing by including such a statement in any party announcement or other communications to employees regarding the event. They also may be informed that they are free to arrive and leave the party at any time.
• Choose Location Wisely: Hold the event off company premises to minimize any implication that work is to be conducted especially during the event or around the event location.  (Note: If the event is held in or near a hotel, make arrangements to offer overnight hotel accommodations to those employees who are not in a condition to make it home safely.)
• Choose Timing Wisely: Hold the event during the day and for a limited period of time. Employees are less likely to overindulge if the event takes place between 12:00 p.m. and 2:00 p.m. as opposed to after work from 6:00 p.m. to midnight.
• Assign Designated Supervisors: Designate supervisors to monitor general employee behavior at the event and to identify, counsel, and manage those employees who appear to be drinking too much.
• Provide Transportation Vouchers: Offer to pay the taxi fare for employees who feel they may have consumed too much alcohol.
• Update Company Policies: Review and communicate the company’s anti-harassment policy to make sure it is up-to-date and covers company-sponsored social events. Alcohol consumption decreases inhibitions, and holiday parties often result in claims of sexual harassment. If the policy is out of date, make the necessary revisions, and ensure that employees get the updated copies as part of the reminder to conform to the policy during such events.

Every company wants to get the New Year started off on a good foot.  Employee lawsuits or complaints springing from inappropriate behavior at a holiday party, however, can derail a company’s attention and morale at exactly the wrong time.  To make sure your employees are able to celebrate the successes of the year behind and to focus on the opportunities of the year ahead, consider these strategies for planning and celebrating a smart and safe holiday season.

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