ABC ZOOM / LUNCH & LEARN – NOVEMBER 12TH 2024 – Presented by Jimbo Ramsay, Cole Swede, and Elisha Burks and Brett Taylor

EXPOSURES:

A company can be held liable for several issues arising from a company-sponsored party, including:

Alcohol – Excessive drinking can lead to inappropriate or dangerous behavior, such as harassment or drunk driving. Courts have been prone to impose liability on a company if the company’s conduct created or exacerbated the risk in serving excessive alcohol at the event.

Attendance – If attendance is mandatory, the employer may face increased liability if something goes wrong. Employees could also request to be compensated for their time at the event.

Harassment / Discrimination – Company policies on harassment and discrimination apply at all company-sponsored events, even if held offsite.

Injuries – Employers may be liable for injuries that occur at the party, even if attendance is voluntary, since such events are often seen as an extension of the workplace.

Respondeat Superior or Vicarious Liability – Employees are generally held responsible for the actions of its employees during the course and scope of employment. This legal theory is called “respondeat superior” or “vicarious liability.” Employers are responsible for the costs of doing business, including the consequences of employee carelessness.

Venue Safety – Employers have a responsibility to ensure the location/venue is safe and in life safety code compliance.

BEST PRACTICES

BEFORE THE EVENT – KNOW YOUR INSURANCE PROGRAM AND NEEDS

Check your company’s general liability insurance policy to understand your coverage for social-host scenarios. Often, commercial general liability policies include host liquor liability, but it’s wise to confirm with your insurer/agent.

Remember, having coverage doesn’t eliminate risks if alcohol service laws are broken, such as serving minors or already intoxicated guests.

Event liability insurance covers legal fees and damages if your organization is found negligent in an incident. Host liquor liability coverage can help protect against incidents related to over-consumption.

It’s also important to have a program in place that includes the following recommendations when working with third-party vendors:

• When working with a vendor, such as a caterer or bartender service, verify they are licensed and insured.
• Stipulate in your vendor’s contract that only those who have received alcohol-awareness training should serve or sell alcohol at your event.
• Require the vendor to provide Certificate of Liability Insurance to include Liquor Liability coverage naming your company as Additional Insured.

BEFORE THE EVENT – RISK MANAGEMENT EVENT PLANNING BEST PRACTICES

An important first step in appropriate event planning is to implement a risk management program within your event plan. The program must have the support of management, be communicated to supervisors and employees, and include a policy advising employees to comply with company policies and drink responsibly at company events.

Your risk management event plan should outline the procedures and strategies that encourage responsible behavior and ensure a safe environment which consequently reduces liability exposures. The following are some planning guidelines.

ALCOHOL: SERVING PLAN GUIDELINES:

• Decide specifics of what you’ll be serving
  • Alcoholic Beverages: What type and quantity? i.e. consider only beer and wine options rather than hard liquor/spirits. This reduces the complexity of monitoring and managing alcohol consumption.
  • Offer Non-Alcoholic Alternatives: Always provide plenty of non-alcoholic beverages like water, soda, mocktails and juice. Make sure these are easily accessible to guests as an alternative to alcohol.
  • Offer Food Consumption: Ensure that substantial food options are available throughout the event, as eating helps moderate alcohol absorption.
• Make a Plan to Serve Alcohol, Don’t self-serve
  • Staffed Bar or Drink Stations: Serve alcohol through trained bartenders or designated servers, rather than offering a self-serve bar. This allows better control over alcohol distribution and consumption.
  • Monitor Consumption: Servers can assess each guest’s alcohol consumption and, if necessary, cut them off when they have had enough.
• Consider limitations to discourage overconsumption,
  • Drink Tickets: Consider distributing a set number of drink tickets per guest (e.g., two per person). This helps control the amount of alcohol consumed and avoids excessive drinking.
  • Time Limit: If offering unlimited drinks, consider a time frame for serving alcohol (e.g., alcohol served only during a specific window of time), so guests are not encouraged to drink excessively throughout the entire event.
•  Consider Pricing Strategy,
  • Avoid Low Prices: Don’t price alcohol too low, as it encourages over-consumption.
  • Tiered Pricing: If applicable, offer a low price on the first 1-2 rounds and then increase price to encourage moderation.

OTHER AREAS: PLAN GUIDELINES

• Make it inclusive and optional – Everybody CAN come, but nobody HAS to.
• Don’t have any work-related activities at the event.
• Choose a venue and activities that minimize risk – ensure the venue complies with safety regulations. This includes checking fire exits, lighting, and the overall layout to prevent accidents.
• Set a dress code and guests
• Consider avoiding potlucks to decrease changes of food poisoning, unsanitary items and allergy triggers.

PLAN FOR HANDLING INCIDENTS, INJURIES AND INTOXICATED GUESTS

• Designated Staff to Assess Guests: Designate specific individuals (security personnel or staff members) to assess guests’ level of intoxication. This could involve observing their behavior, speech, or motor coordination.
• Protocols for Incidents or Injuries: Set guidelines for reporting and handling just as you would for a workplace Incident.
  • Protocols for Intervention: Outline a clear course of action for dealing with intoxicated or disruptive guests. This may include:
    • Politely offering non-alcoholic beverages and encouraging guests to take a break from drinking.
    • Asking a guest to leave if they are visibly intoxicated and presenting a safety risk.
    • Escorting a guest to a designated area (e.g., a quiet zone or exit) if necessary.
  •  Dealing with Aggression: If a guest becomes aggressive or disruptive, have a clear plan for removing them safely, including communicating with security and ensuring they are escorted out of the venue if needed.

  • Providing Safe Transportation Options In the event of Injury or Intoxication – e.g. ride share or taxi vouchers to encourage safe travel home. Consider subsidizing this expense so employees are enticed to use it.

COMMUNICATION BEFORE THE EVENT

• Set clear expectations – communicate (in writing and verbally) your risk management event plan that provides specifics of the event, venue, expectations and controls that will be implemented, as well as, resources that will be offered to ensure a fun and safe environment.
• Clearly communicate that attendance is neither expected or required
• Remind employees of the company’s code of conduct, anti-harassment policy, social media policy and any other respectful workplace guidelines
• Remind managers that they should be setting a positive example and keeping an eye on their employees to ensure that policies are being followed;
• A few days before the event, send a reminder outlining the company code of conduct and harassment policies. If the party includes alcohol, remind invitees to plan for a ride home.

AT THE EVENT – BEST PRACTICES

• Post signs or table tents for safety reminders, e.g. “Drink Responsibly” sign near the bar; etc.
• As management, set the example and model professional and acceptable behavior.
• Be aware of what is happening around you. Watch for behavior that is inappropriate and appears to be unwelcome to the receiving party.
• Ensure that the risk management program is being carried out as stated.
• Discontinue the service of alcohol an hour or more before the party is scheduled to end.
• Clearly communicate the start and end times of alcohol service and avoid ‘last call’ rushes that encourage excessive drinking.
• Address and document Incidents per the Incident risk management program.
• Monitor exits and parking lots to ensure employees are abiding by policies and not driving buzzed, tipsy or intoxicated.

AFTER THE EVENT – BEST PRACTICES

• Ask employees for feedback on the event to Initiate dialogue between you and the employees about the event. It could unveil Issues that may need to be addressed.
• Take complaints seriously – Mistletoe is no excuse. If someone reports issues after the event, pursue the same course of action as though the incident happened during a typical business day.
• Monitor Social Media to ensure your employees posts, mentions or photos are within company policy.

In conclusion, with thoughtful planning and open communication, your company holiday party can be a fantastic opportunity for team bonding. Eat, drink responsibly, and enjoy the festivities!