How Summer Fun Can Lead To Litigation

Does your company host an annual summer event or outing? There’s nothing like a picnic or a party to boost morale, build teamwork, and reward employees for a job well done. But there’s a downside that could cost you big.

Failure to clarify and enforce policies can lead to unexpected claims—such as claims for workers’ compensation or sexual harassment—or liability.

Serving Alcohol Can Lead To Lawsuits or Even Tragedy

The most common problems arising from social events result from serving alcohol. Recent court rulings in many states have held that persons (including employers) who serve liquor may be held liable for injuries to guests or third parties as a result of accidents caused by intoxication.

Jury verdicts can skyrocket into the millions of dollars in these cases, particularly in situations where a drunken employee on the way home from a company function causes serious or fatal injuries to a third party.

Practical Tips for Serving Alcohol at Sponsored Social Functions

If your organization plans to host or allow a social function where alcohol will be served, a combination of the following practices may help to ensure that the event remains safe for all concerned and liability-free for the employer:

• Make sure that employees have received a copy of the organization’s substance abuse policy. Include a sentence or two clearly stating that the policy includes not only the workplace but also work-related events.
• Move the party off-premises to a club or restaurant, and hold it during nonworking hours.

Drugs and alcohol in the workplace—webinar coming next Wednesday. Learn more.

• Do not conduct company business at the party—even presenting speeches by top management could be interpreted as company business.
• Do not require attendance or even recommend that employees attend; make it strictly and absolutely voluntary.
• Have the party managed and planned either by the employee association or as a joint effort of management and some informal grouping of responsible employees.
• Charge admission as a way to control attendance, permit better planning, and share the cost. (The admission charge might entitle each person to a maximum of two drink tickets.) Do not provide liquor purchased with company funds.
• Hire a professional bartender who will refrain from drinking during the party, serve only measured shots, and cut off individuals who overimbibe. Be specific with the bartender as to how long the bar is to stay open.
• Consider closing the bar early in the evening. Many employers make an open or cash bar available for a “cocktail hour” at the beginning of a party, but close the bar later (for example, once dinner is served or the buffet opens). This allows time for employees who may have drunk too much to regain their sobriety before driving home.
• Have a partial open bar by providing two drink tickets to each attendee for free wine, beer, and soft drinks, while charging for hard liquor.
• Make sure nonalcoholic drinks are available, and serve meals or snacks; high-protein foods, especially, help retard alcohol absorption. Steer clear of salty and very sweet foods—both make people feel thirsty and either could lead to increased alcohol consumption.

If you have employees—even a few—you need to be alert for the possibility of drug or alcohol abuse that spills over to the workplace. Don’t miss our informative webinar next week; learn more here.

• Have at least one (and preferably more than one) responsible employee agree to abstain from alcohol so he or she can keep an eye on guests and make sure that intoxicated employees do not drive. Arrange for certain nondrinking employees, taxis, or limousine drivers to take home those who are unfit to drive themselves.
• Have a clear policy stating that overconsumption of alcohol at company social events is not acceptable, and be sure the policy is effectively communicated to employees.

In tomorrow’s CED, sexual harassment and workers’ comp issues related to social functions.

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