Caution, When Hosting Office Holiday Parties
This is the time of year when many employers host a holiday party for employees as a way of saying "thanks" for your efforts during the year. Such company sponsored events can be a fun time and provide a morale boost for employees.
An office party can provide an opportunity for social interaction between employees who otherwise may engage in more formal work related activities. These kinds of events can vary widely, ranging from company sponsored events at restaurant or theaters, to a sumptuous buffet, to a bring a dish pot-luck affair.
The question of whether to serve alcoholic beverages is often raised. While some organizations do permit employee consumption of alcoholic beverages, human resources specialists suggest that this practice has lessened in recent years. One reason is that there are some significant risks and liabilities for the employer when alcohol is served.
Alcohol consumption can be a contributing factor in unwanted sexual advances or other outrageous behavior. Such in-appropriate conduct at a company event can lead to a sexual harassment claim or even criminal assault charges. Also, depending on the circumstances, accidents arising from a company social event could result in a workers compensation claim by an injured employee.
Clearly, the most significant risk arises when an employee leaves an office party in an intoxicated condition and causes an accident resulting in injury or death to others. Such serious events can result in costly litigation.
For these reasons, some employers have elected to have an party without alcohol, and others have decided to forego the office party completely.
An employer can minimize risks by evaluating certain planning considerations. By minimizing or avoiding the "work relatedness" of the function, the employer may be able to reduce potential liability. Some thoughts are offered.
Office Holiday Parties
Is the function held on company premises or during working hours? Dispensing of alcoholic beverages under these circumstances clearly make an employer accountable for incidents arising from the event.
If a function is organized in a way that it furthers the employer's business interest by inviting customers or prospects, for example, a strong business relatedness is shown.
When the employer pays for the costs of the event or deducts the cost of the event as a business expense, such actions document a business related intent of the function.
When the function is held during working time or if employees are paid for attendance at the event, these actions demonstrate that the event was a work event.
The employer's liability is greater when attendance is mandatory or strongly encouraged, as opposed to a voluntarily attended event.
An event that is organized and paid for by employees rather than management is less likely to be seen as a company event.
If alcohol is served, several things can be done to minimize the likelihood of an unwanted incident. For example, conduct the event off premises at a restaurant or club, using a professional bartender serving measured drinks. Limit consumption by selling or providing only one or two drink tickets, avoid an open or free bar, and schedule only a brief cocktail hour with plenty of eats available. Take care not to serve minors. "Shut off " service to any individual who becomes intoxicated, and arrange for transportation or a designated driver.
These thoughts should help the employees and employer alike to enjoy a festive event without worrying about the morning after.
William S. Hubbartt is president of Hubbartt & Associates, a St. Charles, IL consulting firm specializing in employee compensation, employee handbooks, personnel policies and supervisory training. (www.Hubbartt.com) Mr. Hubbartt is author of The Medical Privacy Rule - A Guide for Employers and Health Care Providers.
