10 Tips for Holding a Company Holiday Party - Without Getting Sued

Every company-sponsored holiday function presents some degree of risk. Serving alcohol compounds the problems.  According to a 2011 study by Caron Treatment Centers, 52 percent of employed professionals say they have seen someone under the influence of alcohol at a company-sponsored event whose behavior crossed the line. Additional survey findings include: 

• 30 percent have seen someone flirt with a co-worker or supervisor
• 28 percent witnessed a fellow party-goer drive drunk
• 26 percent indicated a colleague or supervisor shared inappropriate details about themselves or a co-worker
• 19 percent witnessed someone arguing or becoming aggressive with a colleague or supervisor 

According to David Monks, a partner with Fisher & Phillips LLP in La Jolla, having a holiday party can be a great way for an employer to build camaraderie among employees, reward them for reaching certain milestones and help them enjoy the year-end. That being said, employers that do hold holiday parties may wish to consider specific recommendations to limit potential liability. 

Monks provides 10 tips to limit potential liability at this year’s company holiday party: 

1.    If possible, do not serve alcohol. Consider having a catered lunch at the company’s offices. 

2.    Invite spouses and significant others. This ensures there will be someone there to help keep an eye on the employees and, if necessary, get them home safely. 

3.    Serve food if alcohol is served, and always have plenty of non-alcoholic beverages available. 

4.    For dinner parties, consider serving only wine or beer (plus non-alcoholic alternatives) with the meal. 

5.    If alcohol is served, do not 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. Close the bar at least an hour before the end of the party.  Serve only coffee and soft drinks from that point on. 

6.    Let managers know they will be considered “on duty” at the party. Instruct them to keep an eye on subordinates to ensure they do not drink too much. 

7.    Consumption of alcohol lowers inhibitions and impairs judgment. This can result in employees saying and doing things that they would not ordinarily do. Employees should be advised that normal workplace standards of conduct will be in force at the party, and misconduct may result in disciplinary action. 

8.    Hire professional bartenders (do not use supervisors) and instruct them to report anyone whom they think has had too much. 

9.    Arrange for no-cost taxi service for any employee who feels that he or she should not drive home. 

10.  Do not hang mistletoe! Always remember item number 7 and adjust holiday party planning accordingly.

While you can’t completely eliminate the risk of liability arising from parties, by planning appropriately you can substantially reduce that risk – and continue to celebrate!