Happy Holidays!

The holiday season is upon us, and the holiday season brings holiday parties. Office festivities are a great way to boost morale and thank employees for their hard work throughout the year. Yet, some employers worry about liabilities that may arise with employer-sponsored events, while others may not know of issues that can arise with these same events. 

            Throwing a great office party can call for many decisions with legal ramifications.  The first may be where to have the party.  Having the party at an office can lead to a more formal, less festive atmosphere because employees are under the same conditions as during working hours.  The culture of the company will follow the party to the conference room.  The employer may want to throw a more spirited party, but if not, the office location is a great way to save money and reward employees.  Having the party off-site, at either the employers home or a local restaurant can make a more festive environment, but may be more expensive for the employer.

            Another decision is whether to serve alcohol, which may lower inhibitions, but in moderation can add to the enjoyment of the party for those who prefer a drink.  The legal implications to an employer of an intoxicated employee, however, can be major.

            To be compensable under workers compensation, an injury must both arise out of the employment and occur in the course of employment.  Cal. Labor Code § 3600.  Employees injured while going to, attending or leaving a holiday party may have a claim for workers compensation. 

            Additionally, an employer is responsible for acts of the employee during the course and scope of employment under the legal concept of respondeat superior.  The special errand exception expands the course and scope of employment to acts done as a special errand for the employer.  A holiday party in which employees are expected to attend is considered a special errand.  Childers v. Shasta Livestock Auction Yard, Inc., 190 Cal. App. 3d 792 (1987).  If an intoxicated employee leaves the office holiday party and gets in an accident, the damages may be the responsibility of the employer, under the special errand exception.   

            Another issue that evolves with the introduction of alcohol is the possibility of sexual harassment.  People lower their guard with a change in scenery, time of day or the presence of alcohol.  "Incidences of sexual harassment occurring at a holiday party are as serious as if they had occurred at the workplace.  Twenty nine percent of adults have experienced or observed sexual advances between people who work together at such gatherings, more than at any other work event during the rest of the year, including those that occur after-hours or on weekends or at the office during the work day."  (Mistletoe or Legal Woes: Holiday Parties May Pose Legal Pitfalls for Many Americans, New National Survey Finds,lawyers.com, 12/3/2004)  Some of the best ways to manage against these risks are as follows:

1.  Remind all employees of the company policy against sexual harassment in advance.  This little nugget of wisdom should remain in employee's heads during the party, making it less likely that an incident will occur.  This also shows the employers proactive approach towards making the office culture comfortable for all. 

2.  Have the party during the day.  People are less likely to consume alcoholic beverages, may leave earlier, are still home in time for their family, and may appreciate a lunch party as much as a dinner party.  The holiday season can be a busy time, and people may have multiple commitments on the weekends.  Having the party during the day is a great way to get more employees involved, as well as reduce some of the risks mentioned above. Driving home during the day may also be better than driving at night. 

3.  Invite the family.  A family atmosphere may inhibit some of the unwanted conduct of the office holiday party.  Allowing families will keep the party clean. This is also a way to show the employers commitment to the well-being of the employee's entire family. 

4.  Limit the alcohol, or do not serve alcohol.  Wine and beer may be sufficient for dinner and drinks, while lowering the employers bill and reducing the opportunity to overindulge. Making beverages available with a bartender for a fee may also lower the amount of overindulging. 

5.  Hire a limo or provide for taxi service.  Taking employees home in a limo can be great fun, keeps employees safe on the road, and lowers the liability of accidents.  A less expensive alternative is to have taxi cabs ready and available for those who may need them.  Employees or their guests may be intoxicated or just tired, and the taxi is a welcome alternative to driving. 

The employer that weighs the risks and rewards associated with the holiday office party should have a great time.  Although an employer's trust in their employees conduct is essential, planning for the occasional lapse in good judgment can save the employer and the employee from legal problems later.