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	Office Holiday Parties: Eat, drink and be wary Employment/Labor  Employer-sponsored holiday office parties can be a great morale booster for employees. They can also be an invitation to sue when the acts of the company's employees cause injury or death. In recent years, holiday office parties have been the source of countless major sexual harassment cases, negligence and wrongful death actions, and other litigation. Some managers and other employees mistakenly believe that they cannot be liable for their actions if the party is held away from the workplace and attendance is voluntary and uncompensated. Social-Host Liability Employers may unwittingly put themselves in legal hot water by not carefully monitoring their guests' intoxication levels. Under a theory known as "social host liability," employers can be found liable for injuries that result from serving alcohol to a person when they knew – or should have known – he was intoxicated and would be driving. Sexual Harassment Employees are often less careful about their conduct at a social event than they are during working hours, particularly when they've had too much to drink. Unwanted sexual advances – touching, exhibitionism, smooches under the mistletoe – can occur. Courts in many states have found that unwanted sexual advances that may occur at an office party can form the basis of a sexual harassment case against the employer. Employers can avoid the after-party liability by taking some reasonable precautions before the big event. They are: • Issue a notice that company policies regarding sexual harassment and discrimination extend to parties, even off the employer's premises. • Plan an off-premises party at a restaurant or club that possesses a liquor license. This way, alcohol liability may fall more squarely on the server. • Limit or omit alcohol. Consider providing each employee with a set number of tickets that are the only way of obtaining alcoholic beverages. Engage a professional bartender who is experienced in identifying intoxicated patrons. Arrange for taxis or designated drivers. • Host family-oriented parties. People tend to be on their best behavior when in public with their spouses, partners or children. • Instruct managers to set an example and to regulate behavior at the event, even if it is held off-site. • Provide activities or entertainment to shift the focus away from the bar, e.g. disc jockeys, comics, casino night, etc. • Before hosting a party, ensure that you have the appropriate liability insurance. Conclusion Holiday office parties pose very real legal risks that need to be addressed before the champagne is uncorked. If a business owner is in doubt about the proper procedures to put in place at their holiday office party, he or she should discuss their options with an attorney. For further information or questions regarding this eAlert, please contact Wayne Hersh at 949-474-1880. The Berger Kahn Labor & Employment Group publishes eAlerts on timely labor and employment issues. This eAlert is intended for general information purposes only, and does not constitute legal advice. Labor & Employment Contacts: Wayne Hersh 949-474-1880 whersh@bergerkahn.com Jon Miller 49-474-1880 jmiller@bergerkahn.com Back
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