Question
Since our work slows down during the summer, we would like to host a couple of office parties for our employees—maybe one for the Fourth of July and maybe another one just for fun. We want to show our employees that we appreciate all their hard work. What are some general considerations we should be aware of? We are planning to serve alcohol.
Answer
Office parties are a great way for employers to show appreciation for their employees and boost morale. That said, employees must still behave appropriately; an employer should not tolerate behavior at a party that would not be allowed at work. Employers should ensure that employees understand the expectations for conduct at such events.
If alcohol will be served, there are potential risks an employer should consider. Allowing employees to drive after consuming alcohol might create liability exposure if an employer knew or should have known that an employee was unfit to drive and allowed them to do so anyway and an accident ensues, causing damage, injury or worse. For workers’ compensation purposes, consuming alcohol at a company function might be considered within the scope of employment if the activity is required or even endorsed by the employer, and any injuries or illnesses sustained might give rise to potential workers’ compensation claims. Company parties have also been the backdrop for sexual harassment and other complaints, particularly if employees become unruly and engage in improper behavior while intoxicated.
As alluded to above, an employer should emphasize its policies prohibiting alcohol abuse, harassment, fighting and other misconduct, all of which apply at a company social event. An employer can also consider refusing to serve alcohol to visibly intoxicated people, issuing a limited number of drink tickets, having nonalcoholic drink options and/or offering an alternative to driving (e.g., cabs, designated drivers, Uber services). Additionally, an employer should review its workers’ compensation and general liability insurance policies and contact the carriers for specific guidance on coverage and liability.
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