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Employment Law - Avoiding Liability For Office Parties

By Patrick H. Hicks of Littler Mendelson

If you are reading this article, you have successfully navigated the treacherous waters of holiday office parties. There are many good reasons employers have office parties - to help create a familial atmosphere, as a morale booster and to allow employees to blow off some steam, to name a few. However, office parties, whether for a holiday or some other occasion, are fraught with potential dangers ranging from office gossip that will last the rest of the year to the substantial liability that could result if an employee were to injure persons or property while intoxicated.

The danger associated with office parties generally revolves around that combustible mixture of often over-worked employees, the holiday spirit and employer-provided alcohol. The first and most obvious risk is premises liability. If someone trips and falls at a party held on company property, a lawsuit will likely result. In addition to premises liability, if an employee becomes tipsy during an office party and injures themselves or a coworker, the company may also face a workers' compensation claim. Even though an employee's use of drugs or alcohol is generally a defense to a workers' compensation claim, that defense may not be available if it is the employer providing the alcohol and permitting the employee to become intoxicated at an employer-sponsored event. Employers may also face liability for sexual harassment if an employee (or even worse, a supervisor) cannot hold his or her liquor and acts inappropriately with a co-worker.

What You Can Do
The biggest liability risk is what could happen if one of your employees leaves the office party under the influence of alcohol and causes an automobile accident in which injuries occur. There is little doubt that the employer would face a lawsuit and substantial liability in such a circumstance. So what can your organization do to minimize liability, while still allowing employees an opportunity to celebrate? Consider the following:

• Don't serve alcohol.
• Hire a professional bartender. Professional bartenders should be TIPS certified and should know how to curb drinking and deny alcohol to intoxicated employees.
• Plan your party for lunchtime or early evening, when employees are less likely to overindulge.
• Limit cocktail time to an hour or less.
• Use a ticket system so the you can limit the number of drinks an employee can have and bartenders can better monitor those employees who might over drink.
• If providing a cash bar, make drinks expensive to discourage overindulgence.
• Offer non-alcoholic drinks and make sure that waiters know to offer nonalcoholic as well as alcoholic beverages.
• Arrange for employee discounts on overnight rooms at the hotel where the party is held or set up a designated driver system.
• Arrange for transportation for intoxicated employees by finding the person a ride or calling a cab and billing charges to the company.
• Designate "spotters" to make sure that people who have had too much to drink do not leave the party on their own and don't become "overly friendly" with others at the party.
• Convey to employees through a memo or email prior to the party that they are expected to act responsibly, that excessive drinking is prohibited and the measures the organization is taking to ensure a safe event.
• Emphasize that attendance at office parties is voluntary and that no one is required to consume alcohol.
• Invite spouses and children to make the party a more familial atmosphere where people are less likely to overindulge.

Although there is no way to eliminate all potential liability associated with office parties, implementing some of these suggestions will go far to ensure a safer and more enjoyable gathering for all involved.