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This is a reprint of our annual reminders about holiday celebrations:

The holidays are just around the corner, and that means it’s time for HR to plan the holiday party.  While the fun committee may be thinking about food, decorations, and sparkle, the lawyers are thinking about employee complaints, insurance claims, and liability. Does that mean employers are destined to have a boring celebration? No!

Read on to discover the top five legal issues employers face during the holiday party season and how to plan an event that is both festive and less risky.

Alcohol

Alcohol is at the root of many employer legal issues, and not just during the holiday season. Holiday overconsumption impairs employee judgment and creates HR and legal headaches that keep giving long after the new year. Alcohol impairment can lead to unprofessional, offensive, and unsafe behavior, often through harassing or discriminatory comments/conduct or drinking and driving. Keep employees and others safe and mitigate the organization’s liability by limiting alcohol consumption at the holiday party. Consider these tips:

• Communicate expectations about responsible drinking before the party.

• Use drink tickets to control employee alcohol use at the event.

• Model responsible behavior during the celebration.

• Do not serve underage employees.

• Have plenty of food on hand.

• Provide ride-sharing reimbursement or other transportation for those who need it.

Sexual Harassment      

When employees are in a relaxed social setting, they may forget that workplace conduct rules still apply. Coupled with alcohol, this can lead to unprofessional and perhaps illegal sexual harassment at the holiday party. If white elephant gifts are part of the celebration, this provides additional opportunity for missteps. What can employers do to ensure things don’t go too far? Consider the following:

• Communicate that workplace conduct rules still apply at the holiday party, including your harassment policy.

• Limit alcohol consumption.

• Model appropriate behavior and stop inappropriate behavior before it gets out of hand.

• Take all complaints seriously and investigate where appropriate.

Religious Discrimination

Employers should be as inclusive as possible when planning holiday parties, recognizing that employees come from diverse backgrounds and religions. Employees may celebrate one, several, or no religious holidays. The party should reflect this by considering the following:

• Involve employees from all backgrounds in holiday party planning.

• Avoid decorations, food, music, and entertainment centered around one holiday or religion.

• Consider a winter or sparkle theme to keep it neutral.

• Take all complaints and requests for accommodation seriously and handle them appropriately.

Wage and Hour

Holiday parties should be a time for employees to relax and have fun, so employers shouldn’t have to pay for the time spent attending, right? That depends on employers’ expectations and what they communicate. Here are some parameters:

• Employers must pay non-exempt employees for time spent at the holiday party if they require them to attend.

• Employers must pay any non-exempt employees engaging in work at the holiday party for time worked.

• Employers should consider holding the party outside work hours to avoid any confusion.

Safety/Workers’ Compensation

Accidents happen, and that holds true for holiday parties, also. While employers should consider safety in planning the event, they should also prepare for the unexpected. Employer liability for holiday party injuries depends on a variety of factors, chief among them whether attendance is mandatory. Consider the following:

• Do a safety audit of the premises prior to the party to identify hazards.

• While state workers’ compensation laws vary, don’t make party attendance mandatory/pay employees for the time to prevent triggering a workers' compensation claim.

• Hold the party offsite and outside the normal workday to mitigate a finding of work-relatedness and avoid OSHA liability.

• Check with your insurer to confirm you have appropriate general liability insurance or workers’ compensation insurance in case needed.

• If using a third-party vendor or off-site location, ensure they have appropriate insurance coverage.

If you have any questions about what is appropriate or not appropriate for your organization’s holiday party, please contact Employers Council.

Jennifer Vold is an attorney for Employers Council.