By Stephen D. Bruce, PHR
Editor, HR Daily Advisor
The holiday party—a traditional HR role that sounds simple, but can quickly turn into an expensive legal disaster. “With the let-loose attitude of holiday parties, employers often disregard the liabilities involved, especially when alcohol is being served.” says attorney Christopher J. Boman.
It’s natural for employers to want to reward a year of dedicated service to the company. However, employers need to be cognizant of the legal liabilities they could face if precautions are not taken before the festivities begin, Boman adds.
Boman is a partner with the Irvine, Calif. office of Fisher & Phillips LLP. He recommends business owners consider the following as they plan their parties:
1. Keep Religion Out. Employers should avoid any religious ties to holiday parties, and ensure the celebration is more focused on gratitude for the year’s successes. Keep in mind that a "Christmas Party" may appear insensitive to some employees and throwing a generic holiday party will ensure everyone feels comfortable.
2. Avoid Mixing Lavish Parties & Layoffs. Consider the message sent by throwing an extravagant party after conducting layoffs. Can you justify the celebration costs when foregoing it could have kept a few staff members employed for a few months? Morale of current staff concerned about additional layoffs could also be an issue, as well as the potential for lawsuits from disgruntled former staff that hear about the party.
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3. Control the 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.
4. Let a Pro Control the Flow. Hire professional bartenders (don’t ever use supervisors!) and instruct them to report anyone who they feel has “over enjoyed.” Ensure that bartenders require positive identification from guests who do not appear to be substantially over 21.
5. Drive Away Liability Issues. Arrange for a no-cost taxi service for any employee who feels that he or she should not drive home from the holiday event. Also, if business owners host a party at their home and are serving alcohol, they should be aware of the personal liability they may face if someone drives off from the party drunk.
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6. Invite Spouses. 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.
7. Remind Employees of the 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.
8. Consider Alternative Celebrations. Many organixzations are considering alternatives to the traditional holiday bash. For example, companies can take a portion of the money traditionally spent on the holiday party and donate it to a charity. Another option is to consider a company potluck or other event that’s still social and fun, but doesn’t offend with its lavishness.
How about your holiday party plans? Are you scaling back? Considering alternatives? What measures do you take to limit liability? Let me know at sbruce@blr.com.
Great articles. Thanks.