HR Management & Compliance

Party+Alcohol=Harassment+Liability

In yesterday’s Advisor, we covered the alcohol-related challenges of company social events; today we’ll examine harassment and injury issues and take a look at a unique program that “writes” your policy for social activities and dozens of other critical HR policies.

Sexual Harassment at Social Functions

Courts in many states have found that unwanted sexual advances, exhibitionism, improper sexual touching, and sexual innuendo—actions often reported at office parties—can constitute sexual harassment.

For example, in a case where a supervisor followed an employee into the ladies’ room and raped her at a company dinner, a court ruled that

  • The dinner was business-related
  • The employee had felt compelled to attend
  • The employer had allowed the excessive consumption of alcohol
  • The employer was liable

The supervisor went to jail for rape—and the employer paid a great deal in damages (including punitive damages) to the injured worker.

Limiting or controlling alcohol consumption may aid in avoiding harassment episodes since overconsumption of alcohol is a factor in many harassment claims arising out of office parties. In addition, employers may want to reiterate to employees that the company’s antiharassment policy applies to company-sponsored social situations.


BLR’s SmartPolicies gives you 350 HR policies, prewritten for you, ready to customize or use as is. Click here to examine it at no cost or risk.


Liability for Injuries

If an employee is injured during an office social event, the injury may be covered by workers’ compensation. However, many state workers’ compensation laws contain recreational activity exceptions, so that injuries incurred while participating in voluntary recreational programs, including athletic events, parties, and picnics, are excluded unless the event is sponsored by the employer and required for employees.

If an incident is not covered by workers’ compensation, the employee may be able to sue the employer for negligence.

For example, a young woman was rendered quadriplegic during an office party when two co-workers attempted to throw her into an indoor swimming pool. The employer initially defended the case on the grounds that the incident was covered by the state’s workers’ compensation statute—but the court said the action was excluded from workers’ compensation by the "horseplay" exception. The woman sued in court, and the employer eventually settled with her for more than $6 million.

Note: Depending on the circumstances, an employer may be better off if an injury is covered by workers’ compensation. If the injured employee can prove that the employer’s negligence was the cause of the injury, the damage award provided by workers’ compensation will be much smaller than what the employee might be awarded in a lawsuit. If the employee, and not the employer, caused the injury, workers’ compensation, if applicable, would cover the employee’s medical costs and lost wages. However, a lawsuit might provide no compensation to the employee for the injury.

How about your social activities policy? Detailed? Up to date? Our editors estimate that for most companies, there are 50 or so policies that need regular updating (or may need to be written.) It’s easy to let it slide, but you can’t afford to back-burner work on your policies—they’re your only hope for consistent and compliant management that avoid lawsuits.

Fortunately, BLR’s editors have done most of the work for you in their extraordinary program called SmartPolicies.


Don’t struggle with those policies! We’ve already written them for you, and at less than $1 each. Inspect BLR’s SmartPolicies at no cost or risk.


SmartPolicies’ expert authors have already worked through the critical issues on some 100 policy topics and have prewritten the policies for you.

In all, SmartPolicies contains some 350 policies, arranged alphabetically from absenteeism and blogging to cell phone safety, EEO, voice mail, and workers’ compensation. What’s more, the CD format makes these policies easily customizable. Just add your company specifics or use as is.

Just as important, as regulations and court decisions clarify your responsibilities on workplace issues, the policies are updated—or new ones are added—as needed, every quarter, as a standard part of the program.

SmartPolicies is available to HR Daily Advisor subscribers on a 30-day evaluation basis at no cost or risk … even for return postage. If you’d like to have a look at it, let us know, and we’ll be happy to arrange it.

More Articles on HR Policies and Procedures

Leave a Reply

Your email address will not be published. Required fields are marked *