12/04/2023

How to Limit Liability at Your Company Party

As you plan your event, this is a list of best practices to consider

HR Question: We're looking forward to hosting our company holiday party to celebrate our accomplishments this year. While we want this to be a fun celebration, we also want it to be responsible. How can we limit liability at the company party, especially if we’re considering serving alcohol?

HR Answer: The holidays are here, and to many, that means it is time for holiday parties. While holiday events are a great time to bring your team together and increase engagement, there are potential risks to keep in mind as an employer. As you plan your event, below is a list of best practices to consider that may help to limit potential liability:

• If it is truly a social event for your team, do not require attendance. Remind staff that attendance is not required but voluntary. This may help to limit liability with a potential harassment claim because the event is voluntary and not in the course and scope of employment.
• To further support the non-work nature of the event, hold the event off-site and outside of regular business hours. Many organizations also allow employees to bring a guest thereby underscoring the non-work component.
• Set expectations around respectful behavior and encourage employees to drink responsibly. Remind employees that company policies, including harassment and other conduct policies, apply at the event.
• Determine if alcohol will be offered. Company leaders will need to determine if the company holiday party is the right environment for alcohol. There are multiple factors to consider, including the age range of your workforce, how the timing of the party fits with employees’ work schedules, past history, and the location of the party. If you have employees under the age of 21, your company will need to assess how you will handle this potential liability. If you have employees attending the party before their shift, that is another issue you will need to address.

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