BEWARE — THE HOLIDAY PARTY

As the holiday season approaches, a word of caution is in order concerning holiday parties. While a holiday party can be a time for good cheer, good feelings as well as a positive employee relations tool, the party itself, or sometimes what happens after the party, can turn a happy occasion into legal liability.

Anyone planning or attending a holiday party must first remember that the party is an employer-sponsored event. That means that the employer is legally responsible for whatever happens at the party and sometimes for events which occur after the party.

The first issue for any employer planning a holiday party is how alcohol will be handled. If the employer does not usually permit drinking either on its premises or during working hours, then planning a party on premises as a part of the work day will mean no drinking. From the standpoint of managing risk, an alcohol-free holiday party is the best option. When alcohol flows, legal risks rise.

Since a holiday party is a company-sponsored event, all legal requirements and all policies in the employer handbook remain in force. In particular, the rules regarding sexual and racial harassment still apply. That means that racial or sexual jokes, as well as unconsented touching of the body parts of another, are not permitted even if the occasion is a holiday party. However, if alcohol is readily available, employees, or worse yet, certain managers, may become uninhibited with their tongues or hands, and forget these important company policies. Harassment at a holiday party is still harassment and the liability still exists if the event is company-sponsored.

The problem can become even more acute if spouses or significant others are invited to a holiday party where alcohol is flowing freely. After a few rounds of drinks, there could be boasting about who slept with whom on the last business trip, or the spreading of rumors or gossip about office relationships. This type of behavior can convert a joyous time into an unpleasant experience and turn a positive employee relations event into a nightmare.

If the employer decides that alcohol must be served, then have a cash bar or have a very short period of time for drinking before the dinner. If the employer is not willing to place any limitations on drinking, then arrange for designated drivers, and give someone the authority to “cut off” employees or managers who are intoxicated. Unfortunately, every year there are reports of serious accidents or even death from intoxicated employees returning from holiday parties. That is the type of merry Christmas no one needs.

In today’s difficult economic times, the employer may wish to scale back the traditional holiday party. There are many options available for the employer that wishes to control costs, while at the same time offering a positive holiday experience for employees. For example, a well-planned lunch organized for a department or a particular business unit can be just as effective an employee relations technique as the traditional holiday party. Look for creative ways to keep the holidays merry, and at the same time, minimize the risk of liability.