This time of year many employers host holiday parties to show appreciation for their employees and to provide employees a chance to socialize with their colleagues. While such holiday gatherings bring cheer to many employers and employees, they can also bring unexpected liability to the employer.

Liability to the employer can come from a variety of sources, including, but not limited to, excessive alcohol consumption, workers’ compensation claims, harassment and other improper conduct. This does not mean the employer should not host such a party, just that the employer should be aware of the risks and plan the party to minimize such potential risks.

While there are many issues to consider, employers should keep the following issues in mind when planning their holiday parties and employee social events:

• Whether attendance at the event will be mandatory. If attendance is mandatory and an employee suffers an injury as a result, a workers’ compensation claim may arise.
• Whether you will serve alcohol at the party. The consumption of alcohol lowers inhibitions and impairs judgment and as a result, can bring about other problems, such as, excessive drinking, unwanted sexual advancements, harassment, offensive language and jokes and even physical fights.
• If you do choose to serve alcohol, do not have an open bar where employees can mix their own drinks and have unlimited access to alcohol. Consider the following ideas to help control the flow of alcohol at the event:
• Hire a professional bartender with training on serving guests and application of related state laws. Require that the bartender card any guests who do not appear to be 21 or older and to report anyone they feel has had too much to drink.
• Issue each employee a limited number of drink tickets.
• Do not serve punch or other mixed drinks that may mask the alcohol content.
• Do not serve “hard” alcohol; limit alcoholic drinks to beer and wine.
• Keep the bar open for a limited time; consider serving only non-alcoholic beverages for the last hour or several hours of the event.
• Serve plenty of food and non-alcoholic beverages.
• Arrange a no-cost taxi service for employees that have had too much to drink.
• Remind employees that their conduct must comply with company policies during the event.

The items listed above are just a few things employers should consider to reduce or limit employer liability when planning holiday parties and employee social events. It is important to remember that while you may not be able to eliminate all potential risks, you can plan appropriately to minimize risks and make your event an enjoyable and rewarding celebration for all. Employers with specific liability and coverage questions should contact their insurance agent or personal attorney.