HOLIDAY PARTIES

Many employers celebrate the holiday season by hosting parties for their employees. Employers should however be aware that holiday parties can create liability. An employer exposes itself to civil liability if it serves alcohol to a minor or a person with a known disability who is then injured in an alcohol related activity. Further, an employer is liable for worker's compensation benefits for employee injuries if attendance at the party is a "reasonable expectancy of, or expressly or impliedly required by the employment". An employer may also be held liable to third persons injured by intoxicated employees. In addition, an employer may be held criminally liable if an obviously intoxicated employee is served additional drinks at a employer sponsored party. Finally, incidents of sexual harassment can occur at holiday parties thus exposing the employer to sexual harassment lawsuits. The following are some suggestions to assist employers in limiting their exposure to legal liability stemming from holiday parties:

Make Attendance Optional: An employer should inform employees that their attendance is entirely voluntary. This may reduce an employers liability for potential workers compensation claims and third party tort claims which usually center around whether an employee who attends a party was acting within the course and scope of employment. Parties should also be held off the company's premises and not during working hours, in order to further decrease the likelihood that employee misconduct is not within the course and scope of their employment. Business related activities such as announcing bonuses, promotions or awards should also be avoided. Limit Alcohol Consumption: An employer should limit alcohol consumption by distributing drink tickets, offering a cash bar, and /or closing the bar early. Employers may also wish to consider only serving beer and wine in an effort to reduce intoxication.

Provide Transportation Alternatives: An employer should offer employees alternative means of transportation, such as taxi service. Employers may also decrease the risk that its employees will drive while intoxicated by paying for hotel rooms at the company's expense.

Emphasize the Company's Harassment Policy And Avoid "Gag Gifts": Managers should also be reminded that since sexual harassment lawsuits often arise from events at holiday parties, they should behave accordingly. Further, the exchange of "gag gifts" should be avoided since these gifts can form the basis of a sexual harassment claim.