How to Keep Your Company Holiday Party From Landing on the “Naughty List”

Here is our gift to you – Our top 10 tips to help you plan a celebration your employees will fondly remember, while minimizing legal liability.

1. Control Alcohol Consumption. Alcohol reduces inhibitions and good judgment, increasing the risk of inappropriate conduct and comments from employees. This could include, among many other things, blurred lines between management and subordinates. Remember, even if your event occurs offsite or outside business hours, that does not shield the company from a claim of workplace harassment. Limiting, or even entirely eliminating alcohol (bah humbug, we know) at a company party, will inevitably reduce the risk of employees behaving inappropriately. If you are going to include alcohol at your party, consider the following options to control consumption:

• Offer mocktails. These popular, non-alcoholic mixed drinks that replicate craft cocktails will make your employees feel festive while staying sober.
• Hold the party on a weeknight or during the afternoon as employees may be less inclined to overconsume during these times.
• Rather than a self-serve bar, hire professional bartenders who are trained to identify intoxicated guests and will refuse to serve them.
• Issue drink tickets to limit the number of drinks served to each employee.
• Consider only serving beer and wine as opposed to spirits.
• End alcohol service an hour before the event concludes to promote safer departures.
• Ensure substantial food is available throughout the event to help moderate alcohol effects.

3. Choose the Right Venue. Hold the event offsite for insurance and liability purposes. Select a location that is accessible to all employees, including those with disabilities.

4. Ensure Policy Compliance. Remind employees that even if the party is offsite and not during working hours, employees are still obligated to comply with the company’s policies, including anti-harassment policies. As a further precaution, recirculate the company’s anti-harassment policy prior to the party and remind supervisors that they have an obligation to report any violations of policy. If the company has not implemented such policies or provided employees with anti-harassment training recently, now is a great time to do so – give us a call and we can help.

5. Avoid High-Risk Activities. Steer clear of entertainment that could encourage excessive drinking, physical risk, or embarrassment. For example, do not invite employees to sit on Santa’s lap or decorate with mistletoe. Also consider eliminating the DJ or dancing to prevent close contact where inappropriate touching may occur. If the budget permits, invite significant others or families to the event as this may encourage employees to remain on their best behavior.

6. Be Inclusive in Themes and Décor. Foster a sense of belonging by ensuring celebrations reflect the diversity of your workforce. Rather than call it a “Christmas” or “holiday” party, consider making it a non-religious “Year End Party,” “Winter Social,” or a “Snowy Soiree.” Eliminate religious symbolism in order to prevent employees who do not celebrate these holidays or share such religious beliefs from feeling excluded or alleging discrimination.

7. Prohibit Inappropriate AI Use. Establish guidelines for taking and sharing photos or videos, and clarify how AI-powered devices should be used or restricted at the event.

8. Comply With Wage and Hour Laws. If the party is held after working hours, attendance must be voluntary and all work-related business excluded so you do not run afoul of wage and hour laws that may require payment to non-exempt employees for their attendance. Be clear that employees may opt out of attending without penalty or any negative connotation.

9. Ask Employees What is on Their Wishlist. Show appreciation by giving employees the opportunity to be involved in the planning. Survey employees on preferred activities, food, and celebration formats to increase engagement and inclusivity. While you will never be able to satisfy everyone, asking for input from employees will make them feel more included. After the event, ask for feedback to improve future celebrations.

10. Consider Alternatives. Traditional parties are not the only way to celebrate. Perhaps scrap the holiday party altogether for less risky alternatives such as a luncheon, breakfast, or team-building activity during work hours. Community service projects or a volunteer day are also popular alternatives. Another option is to take the party budget and give it back to employees in the form of a year-end bonus or extra paid time off.

Although it is impossible to completely avoid the risks associated with a company party, by implementing these tips, you can greatly minimize those risks and provide your employees with a safe and inclusive celebration. However, should a problem arise, it is critical that employers take every complaint seriously and promptly call your CSG Law attorney.