Minimizing employer liability for holiday parties


Issue:

The end of the year is fast approaching and it’s time to finalize the plans for the annual holiday party. What can you do to minimize your company’s potential liability?

Answer:    

Excessive drinking, off-color jokes, sexual advances, fist fights, etc. can turn a holiday party into a lawsuit. Craig Annunziata, managing partner of the Chicago office of Fisher & Phillips, a national labor and employment law firm, suggests the following tips for avoiding a holiday party legal hangover:

  • Invite employees’ better halves. Invite spouses and significant others so that there will be someone there to help keep an eye on your employees and, if necessary, get them home safely.
  • The not-so-open bar. Don't have an “open bar” where employees can drink as much as they want. Instead, have a cash bar or use a ticket system to limit the number of drinks served.
  • Just say no to mistletoe. Remember that consumption of alcohol lowers inhibitions and impairs judgment. This can result in employees saying or doing things they wouldn’t ordinarily do.
  • Let a pro control the flow. Hire professional bartenders (don't ever use supervisors!) and instruct them to report anyone who they feel has had too much. Ensure that bartenders require positive identification from guests who do not appear to be substantially over 21.
  • Rules are rules. Remind employees that, while you encourage them to have a good time, your company's normal workplace standards of conduct will be in force at the party and misconduct at or after the party can result in disciplinary action.
  • Avoid the after-party. Let your managers know that they will be considered “on duty” at the party to keep an eye on their subordinates. Instruct managers that they are not to attend any “post parties.”
  • Don't let co-workers drive drunk. Arrange for a no-cost taxi service for any employee who feels that he or she should not drive home.

Source: Fisher & Phillips LLP, 1000 Marquette Building, 140 South Dearborn, Chicago, IL 60603; telephone: 312-346-8061.

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