Holiday Celebrations and Liability Considerations

HR / Workplace

By:  Kim Adamson

The holiday season is upon us!  As companies plan for holiday celebrations and events, it’s essential to communicate that everyone is looking forward to a fun holiday season, but also to set expectations and remind staff that parties and celebrations are still a work event and that they are expected to follow the company’s code of conduct and policies and exhibit professionalism and decorum.  A holiday party raises employee morale, allows companies and employees to celebrate successes, and allows employees to connect with colleagues and co-workers they may not interact with throughout the year.  Holiday celebrations and parties can do just that if they are planned thoughtfully and treated like the workplace events they are.  Below are some tips to help you plan and manage expectations and some liability considerations.

Be Inclusive

  • Make sure all employees are invited, and encourage staff of all racial, religious, and ethnic backgrounds to attend.
  • It is important to consider the varied backgrounds of your employees and not make religion, including decorations and music, a focus of the holiday party. Consider a neutral theme such as “winter wonderland.”  The event does not have to be about a particular holiday and should be for the company and its employees to celebrate!
  • If an employee is concerned about participating in a holiday event, HR staff should consider whether they are entitled to religious accommodation.
  • Attendance must be voluntary. Some employees may not want to attend an event related to a particular religion or practice or if alcohol is served. Note that mandatory attendance could lead to wage and hour issues.

Alcohol

If your party plans include serving alcohol, below are suggestions to limit the potential for issues:

  • Limit the type of alcohol to serve, such as only beer and wine, not hard liquor.
  • Provide drink tickets to limit the amount of alcohol served and don’t host an open bar.
  • Limit the hours alcoholic beverages will be served at the event.
  • If a full meal is not in the plan, be sure to serve appetizers and choices of non-alcoholic drinks. Serve coffee and desserts after the bar is closed.
  • If budget allows, hire a catering service that provides professional bartenders and servers trained not to overserve and how to handle alcohol-related issues. These companies should also have appropriate insurance and licensing.
  • Recreational marijuana use is legal in Colorado, and many other states, and employees may want to know if it is acceptable at the holiday party. Employers should follow their policies regarding drug and alcohol use in the workplace and at employer-sponsored events and ensure those policies are followed.  Keep in mind also that employers may be held liable for issues resulting from marijuana or alcohol use at a company-sponsored event.  Leaders and supervisors should refrain from providing marijuana at the party.
  • Leaders and managers should limit their own drinking and help ensure a safe and professional environment for all employees.
  • Ensure everyone gets home safely. Designate someone to keep an eye on alcohol consumption by employees.  Be prepared to provide transportation, such as a shuttle service to public transit or vouchers/payment options for Uber, Lyft, or taxis.

Reinforce Professional Standards

  • Remind all employees that the company’s code of conduct and work policies still apply at holiday celebrations and events. Professional and respectful behavior is expected.
  • Holiday apparel can be festive but should comply with existing dress code policies and professional standards.
  • Leaders and managers should lead by example and set the tone by following policies and maintaining professional behavior.
  • Leaders and managers should watch for conduct that may be considered sexual harassment or harassment based on another protected status and be prepared to manage a situation to ensure a safe and professional environment for all staff.
  • Designate a manager or leader to stay until the end of the event.

Gift Giving and Alternatives to Holiday Parties

  • Some companies have great success celebrating the holidays with a casual day party, volunteering together for a charity, or holding a family-friendly affair at a bowling alley or somewhere more low-key. These activities allow employees to get into the holiday spirit without the higher-risk party atmosphere.
  • Gift giving among staff or departments can be a fun alternative, such as a “white elephant gift exchange.” Ensure staff know the gift-giving exchange rules in advance and that participation is voluntary.
  • Remember a holiday gift from the company may be considered de minimis and not taxable if it’s worth less than $100 and if it’s occasional or infrequent. The IRS lists these examples explicitly: snacks, coffee, flowers, fruit, books, occasional tickets for entertainment events, and occasional meal money or transportation reimbursements for working overtime. Work with your finance team or tax advisor to determine company liability and compliance.

Remember to keep holiday festivities fun and relaxing for everyone.  Planning and having clear policies and procedures can help manage workplace liabilities and obligations this holiday season!

Happy Holidays from ILG Strategic Services!

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