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

Company Holiday Party Risk Management: How to Reduce Liability and Ensure Safety

Hosting a company holiday party can boost morale and strengthen team bonds, but it also comes with legal and safety risks. Employers must plan carefully to avoid liability issues and create a safe, enjoyable environment for everyone.

Common Liability Exposures at Company-Sponsored Events

Alcohol Consumption

Excessive drinking can lead to harassment, accidents, or drunk driving. Courts often hold companies liable if they serve alcohol irresponsibly or fail to manage consumption.

Mandatory Attendance

If attendance is required, employers may face higher liability and need to compensate employees for their time.

Harassment and Discrimination

Company policies apply at all events, even offsite. Employers must enforce anti-harassment and anti-discrimination rules.

Injuries

Even voluntary attendance doesn’t eliminate risk. Courts often view holiday parties as an extension of the workplace.

Vicarious Liability

Under “respondeat superior,” employers are responsible for employee actions during work-related events.

Venue Safety

Employers must ensure the venue complies with safety codes and provides a secure environment.

Best Practices Before the Event

Review Insurance Coverage

• Confirm your general liability policy includes host liquor liability
• Understand event liability coverage for legal fees and damages
• Require vendors to provide proof of insurance and liquor liability coverage.

Implement a Risk Management Plan

• Communicate policies to employees and supervisors
• Include guidelines for responsible drinking and behavior
• Ensure management supports and enforces the plan

Alcohol Service Guidelines

• Limit Alcohol Options: Offer beer and wine instead of hard liquor.
• Provide Alternatives: Stock plenty of non-alcoholic drinks.
• Serve Food: Make substantial food available throughout the event.
• Use Trained Servers: Avoid self-serve bars; hire licensed bartenders.
• Control Consumption: Use drink tickets or time limits for alcohol service.
• Avoid Low Pricing: Keep alcohol prices reasonable to discourage overconsumption.

Other Event Planning Tips

• Make attendance optional
• Avoid work-related activities during the party
• Choose a safe venue that meets all safety regulations
• Avoid potlucks to reduce food safety risks

Handling Incidents and Intoxicated Guests

• Assign staff to monitor guest behavior
• Create clear protocols for handling injuries or disruptive behavior
• Offer safe transportation options like rideshare vouchers

Communication Before the Event

• Share event details and safety expectations in writing
• Remind employees of company policies and code of conduct
• Send a pre-event reminder about responsible drinking and transportation options

Best Practices During the Event

• Post safety reminders near bars
• Model professional behavior as management
• Stop alcohol service at least an hour before the event ends
• Monitor exits and parking lots to prevent impaired driving

After the Event

• Collect employee feedback
• Address complaints promptly and professionally
• Monitor social media for policy compliance

Final Thoughts

With proactive planning and clear communication, your company holiday party can be safe, fun, and liability-free. Focus on risk-management, encourage responsible behavior, and enjoy the celebration!