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Holiday Parties Can Leave Employers With Serious Headaches
Mark E. Brossman, Partner, Ronald E.Richman, Partner and Adam Heft, of Schulte Roth & Zabel LLPEmployers who sponsor holiday parties for their employees should be aware of potential liabilities. Depending on applicable law, employers may find themselves directly liable or subject to claims covered by their workers' compensation insurance if problems arise during or after an employer-sponsored event. Employers should take the time necessary to understand the risks that come with sponsoring a party, recognize the options which can reduce liability, and make these parties safer for both the employees and the employer.
Over the past several years, employers have been faced with an increasing number of claims of alleged harassment committed by co-workers at holiday parties. Everyone is aware of alcohol's ability to lower inhibitions. Obviously, this can lead to inappropriate or offensive behavior. Such behavior could form the basis for employer liability under Title VII of the Civil Rights Act of 1964. The likelihood of liability increases if the party behavior aggravates a pre-existing or developing workplace hostile environment. In addition, employers have been sued for drunken driving and personal injuries.
The only way that employers can be certain to avoid alcohol-related problems at holiday parties is not to serve alcohol at all at these parties. We recognize that this will not be an acceptable option for many employers. Employers who are not willing to completely eliminate alcohol from their parties should consider adopting the following suggestions:
- Do not state or imply that attendance at the holiday party serves a specific business purpose or will be a factor in evaluating job performance. Employees should be aware that their attendance is not mandatory.
- Explain to all employees that intoxication at company-sponsored events is against company policy and will not be tolerated. Remind employees that they are expected to act responsibly.
- Hold parties at restaurants, hotels, nightclubs or other locations where professional caterers will be responsible for serving alcohol.
- If a party must be held on the employer's property, hire professional bartenders as opposed to asking employees to serve drinks.
- Regardless of who is responsible for serving alcohol, a representative of the employer should remind the server not to provide drinks to anyone who is visibly intoxicated.
- Remind managers and members of the human resources department that their responsibility to the company does not pause during the party and encourage them to monitor and, if necessary, report employee intoxication.
- Limit the amount of alcohol served to each employee. This can be accomplished by providing employees with a fixed supply of "drink tickets" or vouchers or limiting the time when alcoholic beverages are served. Although this suggestion may be resisted by employers who are concerned with negative employee reaction, it is one of the most effective means of reducing the likelihood of alcohol-related problems occurring during and after a holiday party.
- Avoid serving alcoholic punch or other beverages that can hide alcoholic content.
- Ensure that a wide selection of non-alcoholic beverages are available and prominently displayed at each of the bars serving alcohol.
- Coordinate food service with alcohol service and avoid serving salty or greasy foods which encourage drinking. Foods high in starch and protein slow the rate of alcohol absorption into the blood stream.
- Stop alcohol service and remove alcoholic beverages well before the conclusion of the party.
- Consider providing entertainment which may help to prevent drinking from becoming the guests' sole focus.
- Provide transportation for all guests in a manner that will not make those who wish to accept feel uncomfortable.
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