Somehow it seems that every year a deluge of claims materialize in January stemming from holiday parties gone awry. While throwing an annual holiday party can be a good way to boost employee morale and show appreciation for your staff’s hard work, it can also put your company at risk for liability.
In today’s post, we examine three key areas that, when handled inappropriately, can turn a fun, work-sponsored event into a potential lawsuit.
Sexual harassment and assault
The relaxed, social environment of an office party can make coworkers behave less professionally than they otherwise might. Therefore, prudent employers do well to remind employees of the company code of conduct — and specifically that these expectations apply to work-sponsored events.
Certain variables can help limit the likelihood of employee misbehavior. For instance, scheduling your holiday party during the day — rather than at night — and providing limited amounts of (or no) alcohol can help keep employee conduct professional. In addition, encouraging employees to invite their significant others to the holiday party can also help deter inappropriate behavior between colleagues.
It is the employer’s responsibility to take reasonable steps to prevent sexual harassment, including at employer-sponsored events, and to develop an accessible procedure for filing sexual harassment complaints. One such preventative measure might be to schedule a sexual harassment prevention training in early December, so that the issue is top-of-mind for employees headed into a holiday party.
Last, in the unfortunate event that you do receive a complaint arising out of behavior at a holiday party, you should quickly investigate and take appropriate disciplinary action, just the same as it would if the behavior took place during the regular work day.
Discrimination
In addition, employers choosing to host a holiday celebration should ensure everyone feels welcome. Be aware of party-planning decisions that could put you at risk of religious- or disability-related discrimination:
- Do not throw a holiday party associated with any particular religion or denomination (e.g., do not have someone dress up as Santa Claus)
- Do not host the party in a religious venue
- Ensure that the party venue is accessible to guests with disabilities
Tort liability
Offering (or sanctioning) alcohol or other substances (like marijuana) at a holiday party not only increases your chances of rowdy party guests but can also make you potentially liable for employee misbehavior once the party is over. In Purton v. Marriott International Inc., the California Court of Appeals found that if an employee gets impaired at an office holiday party and later gets behind the wheel, the employer can be held accountable for any harm the employee causes to others. The Court explicitly noted that the employer could have limited its risk “in numerous ways such as having a policy prohibiting smuggled alcohol, enforcing its drink ticket policy, serving drinks for only a limited time period and serving food. Alternatively, it could have eliminated the risk by forbidding alcohol.”
Employers who are serving or sanctioning alcohol can mitigate risk by offering a safe ride home to employees choosing to imbibe. One such strategy might be to offer to reimburse for a rideshare (Lyft, Uber, etc.) from the venue to the employee’s home.
While you can’t control the behavior of every member of your staff, following the above recommendations can help ensure that holiday celebrations are safe and professional, and decrease the chance of an unhappy surprise in 2025.