As year-end social calendars fill, employer-sponsored parties and client events can be valuable opportunities to recognize teams, build culture, and deepen relationships. They also create heightened legal exposure under federal, state, and local employment and tort laws. This NewsFlash outlines the core legal issues to keep top of mind, recent developments to factor into planning, and practical steps to minimize risk while preserving the spirit of celebration.

Employer-hosted functions are generally considered extensions of the workplace. As a result, key workplace statutes and doctrines apply.

• Anti-discrimination and anti-harassment laws. Title VII, the ADA, the ADEA, and analogous state and local laws apply at employer events, including those held offsite and outside standard work hours. Employers may be liable for harassment by employees, managers, or third parties (including clients and vendors) if the employer knew or should have known and failed to take prompt corrective action. Recent EEOC harassment guidance emphasizes that “work-related” settings include social and networking events, and that policies and reporting channels must cover these environments. Religious discrimination and accommodation rules under Title VII are also implicated—particularly around holiday themes and scheduling.
• Religious accommodation. Employers must grant religious accommodations unless doing so would result in “substantial increased costs in relation to the conduct of [the] particular business.” With respect to holiday parties, employers should be receptive to employee requests to opt out of religious elements, dress codes, or activities that conflict with sincerely held beliefs, absent undue hardship.
• Wage and hour laws. The FLSA and state wage-and-hour laws may require compensation to non-exempt employees for time spent at mandatory events. If attendance is truly voluntary, occurs outside normal hours, involves no productive work, and confers no job-related training, it may be non-compensable. Travel time, set-up/tear-down time, and required pre- or post-event duties can trigger pay obligations and overtime. Prizes and gift cards can affect the regular rate if tied to hours or performance; pure de minimis gifts typically do not.
• NLRA and employee rights. Under Section 7 of the NLRA, covered employees (union and non-union) retain rights to engage in protected concerted activity, including discussions about terms and conditions of employment at social events.
• Disability access and accommodations. The ADA and state equivalents require reasonable accommodations to enable employees with disabilities to participate on an equal basis. This includes accessible venues, dietary accommodations, and modifications to activities.
• Alcohol service, negligence, and vicarious liability. Serving alcohol raises risks of harassment, injuries, and impaired driving. Jurisdictions vary on social host and dram shop liability, but employers can face negligence claims or respondeat superior (i.e. holding employer responsible) exposure if an intoxicated employee causes harm within the scope of employment or at an employer-sponsored function. If alcohol is served, consider issuing one or two tickets per guest for drinks and provide free rides home
• Workers’ compensation and safety. Injuries sustained at employer-sponsored events may be covered if the event confers a work-related benefit or attendance is expected or required. State tests differ; factors often include employer sponsorship, control, benefit to the company, and whether the event occurred during paid hours. Activities involving physical risk (e.g., bowling, ice skating, ropes courses) implicate OSHA’s general duty clause and common-law negligence standards.
• Privacy and publicity. Photographing and posting images of employees or clients may implicate state privacy and right-of-publicity laws. Obtain consent, especially for external use. Avoid tagging without permission.

Best Practices and Practical Recommendations

Adopt a neutral, inclusive approach. Make attendance voluntary. Provide non-alcoholic options, and accessible venues. Invite employees to request accommodations in advance with a clear contact point.

Set expectations in advance. Circulate a concise event code of conduct reminding employees that workplace policies apply, including anti-harassment, EEO, social media, and drug and alcohol rules. Reinforce reporting channels and a no-retaliation commitment. Remind leaders of their heightened responsibilities.

Manage alcohol prudently. Consider a limited drink ticket system, close the bar during remarks, serve substantial food, offer attractive non-alcoholic options, and provide ride-share vouchers or arranged transportation. Use licensed, insured servers trained to refuse service. Designate sober event leads.

Address wage-and-hour issues. If attendance is required or job-related, pay non-exempt employees for attendance and associated travel, and account for overtime. Avoid tying prizes to performance metrics.

Train supervisors and event leads. Provide a brief refresher on spotting and addressing inappropriate conduct, intervening early, documenting incidents, and ensuring safe departures. Reinforce that reports received at events trigger the same prompt investigation duties as in-office complaints.

Plan for accessibility and accommodations. Confirm ADA-compliant venues, accessible seating and restrooms, and quiet spaces. Provide dietary accommodations and alternatives to alcohol-focused activities. Adjust dress codes and activities as needed.

Clarify photography and social media. Obtain consent for photos and limit external use without permission. Remind employees to respect colleagues’ privacy and your confidentiality obligations.

If you would like tailored guidance—including jurisdiction-specific alcohol liability, workers’ compensation standards for social events, and policy language—please let us know your locations, audience, and event format by reaching out to our Employment practice group.

_{This content is made available for educational purposes only and to give you general information and a general understanding of the law, not to provide specific legal advice. By using this content, you understand there is no attorney-client relationship between you and the publisher. The content should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.}