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Audit Factors to Determine Employer Liability for Employee Conduct at Office Parties

Audit Factors to Determine Employer Liability for Employee Conduct at Office Parties

  • What is the business reason and purpose of the activity?
  • Did employer encourage or subsidize the activity?
  • To what extent did the employer manage or direct the recreational enterprise?
  • Was there substantial pressure or actual compulsion upon the employee to attend and participate?
  • Did the employer expect or receive a benefit from the employees' participation in the activity, whether through improved employer-employee relationships; greater efficiency in the performance of the employees' duties; use of the recreation as partial compensation or additional reward for the employees' work, or for advertising the employer's business, or as an actual adjunct of the employer's business?
  • Did the party or drinking occur on the premises during a lunch or recreation period as a regular incident of the employment?
  • Did the employer encourage attendance by taking a record of attendance, paying for the time spent at the event, requiring the employee to work if the employee did not attend, or maintaining a known custom of attending?
  • Did the employer substantially finance the occasion?
  • Did the employees regard it as an employment benefit to which they were entitled?
  • Did the employer substantially benefit from the event through tangible advantages such as having an opportunity to make speeches and awards?

Reprinted with permission. © CCH

Audit Factors to Determine Employer Liability for Employee Conduct at Office Parties. What is the business reason and purpose of the activity?

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