The holiday season has traditionally been a time or cause for celebration. However, employers should be cautious if they decide to sponsor a holiday party. Employer-sponsored holiday parties where alcohol is served can be extremely problematic for the employer. Excessive drinking by employees can lead to unwanted sexual advances, fights between coworkers, auto accidents, or other incidents, all leading to potential liability for the employer. Before making merry, employers should consider the following suggestions:

• Communicate to employees that inappropriate conduct, even during a holiday party, will not be tolerated. The holiday party is a time for celebration and enjoyment for all employees.
• If management witnesses inappropriate behavior or if a complaint is received, the employer must take the matter seriously and investigate promptly and thoroughly. Do not dismiss any improper activity simply because of the holidays. Take proper remedial action, if warranted.
• Ensure the office party venue is safe from hazards. Consider lighting, overcrowding, slippery floors, sidewalks, and parking lots. Take a look at the company’s insurance policy to ensure it covers accidents that may occur at the holiday party.
• Consider hiring security personnel or designate chaperones for the company party who will be responsible for supervising the guests and generally watching for signs of intoxication and other safety concerns.
• Consider an alcohol-free party. If alcohol is served, hire a bartender who will stop serving guests that are or appear to be intoxicated. Do not put bottles out or provide an open tap. Do not circulate drinks on trays. Offer one or two free drink tickets. Requiring guests to pay for additional drinks may reduce the likelihood of overindulgence. Stop serving alcohol well before the party officially ends.
• Do not limit the party to the Christmas holiday. Most cultures and religions celebrate some holiday at this time of year. Be inclusive.
• Make the office party truly voluntary. Consider holding the event off-site and after hours. A holiday party should not be viewed as part of an employee’s obligation. Inviting spouses and significant others would be appropriate, as the attendance of spouses or significant others may reduce the incidences of harassment or offensive behavior by employees. If clients or customers are invited, however, employees may feel that the employee’s attendance is “mandatory”.
• Make sure there are plenty of non-alcoholic drinks available and serve plenty of food. Encourage designated drivers. Arrange for alternative transportation. Remember, during the holidays, there is often free transportation available for those unable to drive. Find creative ways to entertain your guests, such as Karaoke, games, skits, or contests. Alcohol should never be the focus of the party. Watching your co-workers groove to the cool sounds of today’s hot music is intoxicating enough.

We recognize that if all the suggestions above are followed, your employees might think you are trying to take the fun out of the holiday celebration. Nonetheless, by following the above suggestions, employers may avoid or limit serious problems. For more information, we encourage you to contact a member of our Employment, Labor and Benefits practice group.

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