Beware the Holidays

By John Lowe

It is that time of year again when Kegler Brown's employment attorneys put on their Scrooge outfits and remind everyone not to have too much fun at the company holiday party. Each year we feel obligated to frighten owners, CEOs, and HR Managers to "beware the holidays" because of the potential liability companies face from office parties.

While the storied "office party" of the past seems to only exist in the memories of a few long-term employees, danger still exists for companies that hold more tame employee get-togethers. Whether alcohol makes your employees a bit bolder or a bit more amorous, watch out for sexual harassment complaints after the party. Also, companies can be held liable for injuries, or even death, caused to others by someone who became intoxicated at the party. This is especially true if attendance is mandatory or "strongly encouraged."

You may be able to shift or mitigate the potential liability if you hire a catering company to operate the bar and contractually require them to monitor employee usage and refuse to serve those who are intoxicated. The best defense, of course, is vigilance at the party. Take car keys from those who have had too much, and send them home in a taxi. Rein in the frisky employee before their conduct becomes harassing. Stop serving alcohol well before the party ends and do not allow any "drinks for the road," other than company-provided coffee. Finally, and perhaps most importantly, check with your insurance agent, before the party, to be sure that your liability policy provides coverage for liquor-related incidents.

With the above in mind, and if still possible, we hope you enjoy the holidays.