How to hold a company party – without getting sued

Holiday parties can boost morale and offer the opportunity for employees to relax and enjoy one another’s company outside of the office environment. But there is always a risk involved in holding any company-sponsored function.

Serving alcohol compounds the problems. According to one study, 36 percent of employers reported behavioral problems at their most recent company party. These problems involved everything from excessive drinking and off-color jokes to sexual advances and fist fights.

As a result, about 30 percent of employers now hold alcohol-free parties.

Because many employers still want to hold holiday parties, you can greatly reduce your legal liability by observing as many of the following recommendations as possible:

1. If possible, don’t serve alcohol. This is easier to do if you simply have a catered lunch at the company offices.

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

3. Always serve food if you serve alcohol and always have plenty of non-alcoholic beverages available.

4. If your party includes dinner, consider serving only wine or beer (plus non-alcoholic alternatives) with the meal.

5. If you do serve alcohol, 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 available. Close the bar at least an hour before you plan to end the party and switch to coffee and soft drinks from there on.

6. Let your managers know they will be considered to be “on duty” at the party. They should be instructed to keep an eye on their subordinates to ensure they do not drink too much. Instruct managers that they are not to attend any “post party” parties.

7. Consumption of alcohol lowers inhibitions and impairs judgment. This can result in employees acting differently than they normally would. Remind employees that, while you encourage everyone to have a good time, your company’s normal workplace standards of conduct will be in force at the party and misconduct at or after the party can result in disciplinary action.

8. Hire professional bartenders (don’t use supervisors) and instruct them to report anyone who they feel has had too much. Ensure that bartenders require positive identification from guests who do not appear to be substantially over 21.

9. Arrange for a no-cost taxi service for any employee who feels that he or she should not drive home. At management’s discretion, be prepared to provide hotel rooms for intoxicated employees

10. Never, never, never hang mistletoe! No, I’m not kidding. Take a look at item No. 7 again, and you’ll see why.

Clarence Belnavis lives in Vancouver and is managing partner at the Portland office of Fisher & Phillips LLP, a firm dedicated to representing the interests of management.

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