06 Dec Avoiding the office holiday party hangover

By Anita Byer, Setnor Byer Insurance & Risk

Are you planning an office holiday party this year? If so, you are not alone. Employers nationwide are hosting workplace holiday celebrations for their employees. They can be a great way to show appreciation, increase employee morale and promote teamwork. They can also create risks that leave employers exposed to potentially significant liabilities.

Perhaps the most significant risks involve alcohol. What happens if an intoxicated employee breaks something or hurts someone? Though liability is determined on a case-by-case basis, employers may face a greater chance of being held responsible if attendance is, or is perceived to be, mandatory. The likelihood of liability may also increase if the employer pays for or provides the alcohol. The good news is that employers can take various steps to reduce their potential liability, including:

• Collecting car keys from all who drink. Assign designated drivers or arrange transportation for anyone who is too impaired to drive. If the party is in a hotel, reserve a block of rooms for the inebriated to spend the night.
• Appointing someone in a position of authority to monitor alcohol consumption; including making certain that no alcohol is served to minors.
• Limiting alcohol consumption with “drink coupons.” (i.e., two drinks per person) and closing the bar once dinner begins.
• Notifying everyone before the party that a) anyone who arrives intoxicated will not be allowed in; b) BYOB is not permitted; c) excessive drinking will not be tolerated; and d) inappropriate behavior at the party may be grounds for discipline.
• Holding the party at an off-site location with professional bartenders to serve and monitor alcohol consumption.

Here are some other holiday party-related risks that employers need to monitor during their event.

Discrimination and Harassment: Lines are often blurred and easily crossed during an office party. Employers may be held liable for unlawful harassment and discrimination that takes place during the event, even if it’s off-premises and off-the-clock. Remind employees that inappropriate behavior will not be tolerated. Redistribute the company’s sexual harassment policy before the event.

Premises Liability. Employees are often allowed to bring spouses and significant others to the office holiday party. Every ‘plus one’ is a potential slip-and-fall victim. If the event is being held onsite, employers must make sure the workplace is safe throughout the entire event.

Workers’ Compensation. Employees injured in the course and scope of their employment are typically covered by workers’ compensation. Although getting hurt at a holiday party wouldn’t seem to be work-related, an employee may be covered by workers’ compensation if attendance at the party is explicitly or implicitly required (or ‘encouraged’). Tell employees the holiday party is a voluntary social event, and mean it.

Employers should review their insurance policies prior to the party to make sure they are covered in the event something happens during the holiday party. General liability, employment practices liability and workers’ compensation insurance may cover some of the risks created by the office holiday party. However, other risks may require additional insurance coverage, such as a policy that covers one-time events, including alcohol-related liability, which may be available for a small additional premium.

Please contact us to learn more about protecting your business during the holiday season.