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Plan
Your Company Party Carefully!
(last updated November 2001)
It
is time again for all of those holiday parties or awards
banquets. Does your company have a policy about serving alcohol?
Serving alcohol at company-sponsored parties and events can
have some serious consequences - tragic, if a drunk employee
gets into an accident while driving home. Plus, there tends
to be a strong correlation between increased alcohol consumption
and the number of sexual harassment complaints.
Courts
have been expanding the liability of employers for their
employees' actions when alcohol is consumed. The basic rule
is that employers are not responsible if the event where
the alcohol was served was purely social. But if business
was involved, the employer may be held accountable. How do
you determine if an event is business related, rather than
purely social? The courts will consider a variety of factors.
Where was the event held? Were employees required to attend?
Were spouses invited? Were speeches given or company business
discussed? Was the event organized and sponsored by the company
or was it independently arranged and paid for by the employees?
One
company served alcohol at an annual banquet for employees
who had achieved five years of service. While driving home,
an employee who had been drinking alcohol struck and injured
another motorist. The employer was held liable because the
banquet was an official company function that employees were
expected to attend. Spouses/families were not invited, there
were speeches by the vice president, and seating was arranged
by seniority. The court had no trouble concluding that this
was a business event, not a social one.
There
are a number of things an employer can do to prevent alcohol-related
problems (including sexual harassment and auto accidents)
and limit liability risks:
Do
Not Serve Alcohol: This is the simplest solution of
all. For those who do not consider this realistic, read
on…
Limit
Alcohol Consumption: There are a number of ways to
do this, such as a no-host bar, or by providing a limited
number of drink tickets. Also stay away from sweet, alcoholic
punches; these can make it difficult for someone to tell
how much alcohol they are consuming - until it is too late.
Close
the Bar Early: Stop serving alcohol one or two hours
before the end of the event. If possible, continue serving
food even after the bar is closed.
Have
the Party Offsite: If the party is held at a hotel
or restaurant with its own liquor license, and their employees
are serving the drinks, you will be less likely to be held
liable.
Establish
an Alcohol Policy: Let your employees know (in writing)
that excessive drinking at company functions will not be
tolerated, and that consuming alcohol will not be an excuse
for inappropriate behavior. Remind workers about the dangers
of drinking and driving.
Make
Driving Unnecessary: Offer transportation alternatives,
such as taxi vouchers or other company-paid transportation,
so that employees will not need to drive themselves home.
Avoid
Company Business: Keep the event as social as possible.
Minimize any discussion of business matters and hold the
party outside regular business hours.
Make
it an Optional Event: If you will be serving alcohol,
it is wise to make attendance purely voluntary.
Invite
Spouses/Dates: Inviting spouses and dates will tend
to make the event more of a social occasion and less of
a business function.
Minors
in Attendance? The law can come down hard on those
who allow minors to drink alcohol. If a significant number
of your employees are minors, or if you expect families
with minor children to attend events, it would be wise
not to serve alcohol at all. If you still decide to serve
alcohol, make sure there are strict and effective controls
in place to prevent minors from consuming alcohol.
While
it is impossible to exercise absolute control over your employees,
the key to avoiding legal problems and to keeping your employees
safe is to do everything you can to prevent them from becoming
intoxicated, losing control of their behavior, or getting
behind the wheel when they should not drive. This is possible
if you think about these issues before you have your holiday
party or other event.
WAAG
AND CO. wishes everyone a safe and happy holiday party season!
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