It’s Party Time! What Do You Need to Know?
By Cara Whedbee, Ph.D.
‘Tis the season for office parties, but what do you need to know to avoid this situation described in the lyrics of a popular song, “It’s my party and I’ll cry if I want to?” No employer wants their party to end in tears, so there are a few things you need to be aware of to keep your after-party workplace upbeat.
Keep Party Liability at a Minimum
According to CCH, there are several things you need to know to keep potential company liability at a minimum when hosting social events for employees:
- Make attendance voluntary. Avoid any direct or indirect pressure to attend.
- Do not keep records or lists of people who attend or don't attend.
- Avoid holding the party during regular working hours. If it is held during regular working hours, during lunch for example, employees should not be on the clock.
- Hold the party off site.
- Do not deduct the cost of the party as a business expense.
- Do not invite customers.
- Do not hand out awards or bonuses at the party.
- Do not make speeches or otherwise conduct business at the party. Make the party a strictly social event.
- Do not refer to past celebrations (e.g., 10th annual party or otherwise label the celebration as a recurring event. You don't want your employees to think that the party is a regular benefit of employment).
- Include employees in planning and funding the party.
- Make sure you have a well-publicized inappropriate behavior policy that applies to all company activities and employees.
- Update company policies relating to alcohol. Your policy should, with limited exceptions, prohibit alcohol from being consumed on company premises during or after working hours. It should also prohibit the use of company funds to purchase alcohol and bar supervisors from providing alcohol to employees.
As can be seen from the list above, there are a lot of things to be considered before you throw that office bash. One of the most important items to ponder, though, is whether or not alcohol will be consumed at your event.
To Drink or Not To Drink; That is the Question
CCH has a strong opinion on the topic of drinking at office parties, “Do not serve alcohol.” Knowing this is not the reality for most company social events, though, they do go on to give some advice to reduce your liability if you are going to serve alcohol:
- Communicate in advance that excessive alcohol consumption will not be tolerated.
- Have plenty of nonalcoholic beverages and food.
- Stop serving at a specified time well before the scheduled end of the party.
- Inform all servers (including caterers) to not serve intoxicated individuals.
- Provide alternate transportation.
- Provide discount rooms if the party is held at a hotel.
- Do not pay for drinks or use a drink-ticket system to pay only for a limited number of drinks.
CCH also suggests you consult your workers' compensation carrier about coverage changes if any office party activities are undertaken, especially alcohol consumption.
So, whether or not you choose to include alcoholic beverages as part of your office party, please strongly consider implementing the suggestions given in this article to help reduce the liability that such events could incur for your business. Once you have these items covered, though, don’t forget the most important requirement for every party—have fun!
<p>No employer wants their party to end in tears, so there are a few things you need to be aware of to keep your after-party workplace upbeat.</p>