The holiday season has arrived, and with it employer-sponsored holiday parties. Holiday parties are an excellent way to bring together employees and their families in celebration of the season. However, employers must be cautious that the company celebration does not result in unanticipated problems.

Social host liability is a serious issue for employers who choose to throw holiday parties. Liability can arise for a holiday host when an intoxicated guest causes injury - whether at the function or after leaving. A social host’s liability is greatest for drunk driving accidents, when the host has provided alcoholic beverages to a visibly intoxicated individual who causes injury. In drunk driving cases, liability under the law is strict, meaning that there are very few defenses once it is established that a guest was served while visibly intoxicated. Liability for an employer can also arise when an employee who has had too much “holiday cheer” later becomes violent or sexually harasses a co-worker.

Although the potential for liability exists, most employers can still throw a fun party but limit their exposure by taking some common sense steps.

• Control Consumption: An employer must take care that a visibly intoxicated individual is not served alcohol. Limiting consumption is a key component to limiting liability. Hiring professional servers who are trained not to serve intoxicated patrons, issuing a limited number of drink tickets, having a cash-only bar and closing the bar well before the end of the party are all wise options. It is also important to have an ample supply of non-alcoholic drink options. Finally, in our experience, providing adequate food at your event can also help limit potential exposure.

• Offer an Alternate to Driving: The most serious liability arises when an attendee leaving a party drives after having too much to drink. If alcohol will be served at your holiday party, be sure to make a clear announcement that a cab ride or an alternate form of designated driver is available upon request. Stationing a high level manager near the exit to say goodnight and remind attendees of this option (and insist when appropriate) is a good idea.

• Enforce Workplace Behavior: Your employee manual should include clearly stated policies regarding alcohol consumption and sexual harassment. Although a holiday party is a time to celebrate, stress to your employees that the rules still apply. In general, an employer should not tolerate behavior at a party that would not be allowed in the workplace. If you do not have an employee manual, there is no time like the present to put one in place.

• Take Action: By taking a few practical steps, an employer can throw a great holiday party without unwittingly incurring liability.

If you have questions regarding social host liability, would like to discuss pro-active ways to limit or insure against potential risk, or if your holiday celebration inadvertently gives rise to a post-party headache, Dunn Carney’s Hospitality Team and Closely Held Business Team can help. We offer a wide range of services to our clients, including labor and employment law. Please contact Randall L. Duncan, Chair of our Closely Held Business Team, and we will be happy to accommodate your request.

Have a wonderful and safe holiday season.

Closely Held
Business Team

The Closely Held Business Team - Dunn Carney is dedicated to assisting business owners in navigating through the opportunities and challenges the law presents to advance each owner’s success in business. They understand the multifaceted issues business owners face each day and the need for responsive and proactive legal counsel.

Team members include:
Randy Duncan, Team leader
Bob Allen
Ric Ashe
David Buono
Brian Cable
Todd Cleek
Jack Cooper
Ken Davis
Frank Hilton
Scott Howard
Scott Jonsson
Robert Kerr
JoDee Keegan
John O'Neil
Eric Smith
Kyle Stinchfield
Bob Winger
J. David Zehntbauer

About Dunn Carney's Employment Law Group

Dunn Carney's employment law practice is oriented towards representation of management, with a particular focus on prevention. We work with our clients in creating and maintaining policies and internal resolution techniques designed to minimize claims. When the inevitable judicial or administrative claims arise, Dunn Carney is prepared to assist its clients in a vigorous defense leading to an appropriate resolution. Our expertise covers the entire array of employment-related issues including discrimination and harassment claims (particularly sexual harassment), disability-related issues and other forms of unlawful employment practices, un-employment compensation, wage and hour issues, together with the expanding areas of concern resulting from employee terminations. Dunn Carney is recognized as having particular expertise in the drafting and enforcing of non-competition and trade secrets protections.

Team Members
George J. "Jack" Cooper
Anne D. Foster
Scott A. Jonsson
Robert A. Kerr
Renee R. Stineman