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Should You Be A Scrooge? Tips On Company-Sponsored Holiday Parties
By: Kerry E. Dwyer, Esq.
kerry.dwyer@wilaw.com
414.276.5000
‘Tis the season of holiday parties and festivities. Employers generally acknowledge the holiday season with parties or other social occasions for their employees. But some employers wonder whether the risks of such parties outweigh the goodwill they generate. Before you say “bah humbug” to parties, read these tips on efforts you can take to minimize some legal risks of having a company party.
Location, location, location. Consider where to have your party. If it is on-site, determine whether guests will be permitted and establish who may be invited. If you have a confidential environment, it may be inappropriate to permit guests. If you have the party off site, be sure it is accessible to all employees and their guests. If you are in a private party room, preview the room to ensure its accessibility and consider the parking facilities and whether folks will need to walk any great distances.
Alcohol. Most companies provide some alcoholic beverages at holiday parties. One concern employers have is whether they are liable if an employee or guest leaves the holiday party and causes an accident due to intoxication. In Wisconsin, the law provides immunity from civil liability to a person who provides alcohol to another. This immunity extends even if the person who received the alcohol injures a third party and the alcohol was a substantial factor in the injury. However, this immunity does NOT apply if the alcohol is supplied to a minor, so employers must ensure that minors are not drinking alcohol at company parties. In addition, there can be fines or possible imprisonment for providing alcohol to a minor and for providing alcohol to an intoxicated individual. Many employers choose to host the party off site or to hire professional bartenders so that these trained professionals bear the responsibility of ensuring that alcohol is properly served.
Some other strategies employers use to reduce alcohol consumption are to limit the type or amount of alcohol served to employees by only paying for beer or wine and providing drink tickets. Obviously, these methods are not foolproof as employees can purchase their own beverages or get extra tickets from non-drinkers. Many companies also offer free taxi or limo service to encourage individuals to refrain from driving after drinking.
When is a party work? Make the party truly voluntary. If employees are required to attend, they can claim pay for time worked. If the party is on work premises, it may be harder to distinguish between time off and working time. While most companies want good attendance at their parties, do not pressure employees to attend.
What about the mistletoe? A definite NO! All joking aside, more than one harassment case has its origins at a company party. The combination of a festive environment and alcohol often lowers inhibitions. In particular, managers and supervisors need to be careful of their conduct. If an individual's behavior obviously crosses the line, someone in management should tell the individual to stop the offensive behavior or leave the party (and call him or her a cab if necessary).
Go ahead, have a party! Just take some sensible steps to reduce the company's liability.
*All information appearing in this article is for informational purposes only and is not legal advice. This article does not create an attorney-client relationship with any reader. Do not act upon any information contained in this article without seeking professional legal counsel.
