Keep your office holiday parties in check to avoid liabilities

As the year-end approaches, many companies host holiday parties to show their appreciation for staff members' hard work. These events can be great opportunities for co-workers to build relationships and celebrate a job well-done.

Office parties are meant to be a reward, but then can turn into regrets if businesses don't plan ahead and anticipate potential liability pitfalls. The following are issues that can be avoided with a little bit of foresight to make sure the event goes off without a hitch:

1. Limit alcohol consumption
While everyone at the office is kicking back at the party, some individuals have a tendency to throw back a few too many drinks and behave inappropriately. According to attorneys at Law Smith, Gambrell & Russell, sexual harassment claims are the biggest risks at holiday parties. Employees who over imbibe might try to lure a colleague under the mistletoe or make comments that could be perceived as inappropriate in the aftermath.

A poll by Caron Treatment Centers found that 30 percent of surveyed professionals had seen a co-worker flirt with supervisors or peers and 19 percent witnessed team members become aggressive while under the influence at office parties.

To discourage these situations, employers can offer drinks during "cocktail hours," or end bar service a few hours before the party concludes to limit the amount of alcohol consumption, Smith, Gambrell & Russell advise.

2. Make it optional
Employers can also run into problems if they do not make it clear that holiday events are voluntary. Holding a celebration during office hours or requiring attendance can lead to employee lawsuit vulnerability. The Fair Labor Standards Act requires the employees be paid for all time they work, including mandatory employee attendance at office events. 

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