Keep Company Parties Fun - and Safe - for All

08/20/08

The company holiday party was in full swing. The band was playing, and people were dancing, eating—and drinking.

Jim, the HR director, had devised a system whereby each employee received tickets for two drinks. He’d wanted a two-drink limit, but the CEO insisted on allowing people to buy drinks after that.

As the party progressed, Jim noticed it got louder. And he didn’t like what he saw. Janna, a shy administrative assistant by day, was dancing wildly. Jim noticed she lost her balance every so often.

And the manufacturing director was swaying and slurring his words.

Jim buttonholed the CEO. “I think we ought to close the bar,” he said.

“Oh come on,” said the CEO. “People are blowing off a little steam. It’s healthy.”

“Most of these people are driving their cars home tonight. We could be liable.”

The CEO looked at Jim darkly. “These are responsible people—that’s why we just had our best year ever.” He stalked off.

Jim got the message. He surveyed the scene glumly, hoping there were no accidents or incidents of sexual harassment before the night was over.

Case Analysis
Company-sponsored functions are a mixed bag for employers. While they are an opportunity to boost morale and promote camaraderie, they also contain legal pitfalls.

In this case, Jim’s concerns are well-founded, while the CEO is putting the company at risk with his nonchalance.

There are two main issues here. First is the potential legal liability employers have when they allow employees to become intoxicated and then drive home. Second is the great potential for misconduct when alcohol flows freely.

Liability for intoxicated employees varies greatly from state to state. Some have what are called “dram shop” laws. These impose civil liability on those who “overserve” alcohol to someone who later injures himself or others. While many dram shop laws don’t apply to social hosts like party givers, employers may still be subject to their state’s negligence laws. Like it or not, employers must assume that they could be found responsible for behavior by employees that has historically been the responsibility of the individual.

In today’s litigious society, then, no manager—especially the CEO in the story —should look the other way when faced with intoxicated employees who may harm themselves or others. At an absolute minimum, the CEO should have been thinking about how to get Janna, and anyone else in her condition, home safely.

Understand, too, that because alcohol interferes with judgment, intoxicated employees are more likely to engage in misconduct. Employees who drink may become overly friendly and touchy with people, and they may behave in ways that would be inappropriate in any work setting.

Janna, for example, is not only drunk, but she’s behaving inappropriately and in a manner out of character for her. What if a co-worker takes advantage of her uninhibited conduct and makes a pass or begins pursuing her for dates or sexual favors after the party? Employers may be held liable for sexual harassment at off-premises, off-the-timeclock company events.

And the manufacturing director is a time bomb waiting to go off. There are any number of things he could do, while his judgment is impaired, that could subject the company to liability. Not only should he be cut off and given a ride home, but his apparent intoxication should be discussed with him after the party as inappropriate and not fit conduct for a member of the management team.

Prudent managers know that company events are no place to let their hair down. They know their conduct will be noted—and commented upon—by others. Poor behavior at company functions can derail a career.

For these reasons, Jim’s idea of giving employees drink tickets and a two-drink limit is a wise idea. Two drinks over the course of an entire evening (particularly where a meal is served) would be unlikely to result in drunk driving or objectionable behavior by employees. The CEO’s actions, unfortunately, have undermined this good idea to limit consumption.

In short, Jim was thinking clearly and with the company’s interests in mind. The CEO, however, abdicated his responsibilities in the name of letting people “blow off steam.” His handling of events leaves a lot to be desired—and opens the company up to potential legal problems.

Achieve Party Peace of Mind
Employers planning to hold holiday parties should take a number of steps.

First, gather the management staff together and tell them that they must hold themselves to a higher standard of conduct than their subordinates do. Managers can subject a company to liability on a different level and degree than can the rank and file, and they must understand that this is true even where off-premises conduct is concerned.

Tell them to be alert to potential problems, including intoxication and harassment. If they observe a situation that seems as if it will lead to trouble, advise them to consult with upper management.

Second, think about limiting the amount of alcohol that can be consumed at an event. But be aware that enterprising employees will find a way to over-indulge if they want to—by sneaking drink tickets, or by bringing in a bottle.

For that reason, make alternative transportation from events available, and encourage employees to use it. Arrange ahead of time to have a limo or taxi service on call to take tipsy employees home.

Third, write a policy memo prior to the event designed to remind employees that they must remember to conduct themselves professionally, and that harassment, rudeness, and inappropriate conduct will not be tolerated.

Mention in the memo that transportation home will be available, and that management reserves the right to require an employee to be driven home if, in its discretion, the employee is not able to drive safely. Moreover, the memo should say that management reserves the right to direct the bar not to serve any employee who appears intoxicated. Last, remind employees that no one is required to drink, and that no one should pressure nondrinkers into doing so.

To avoid making this seem to be a heavy-handed directive, try to find a tone that conveys the message, “We want you to have a good time, but you need to remember your manners.”

To ensure employees note the importance of the memo, post it on bulletin boards, put it in employee pay envelopes, or staple it to admission or drink tickets.

Fourth, make sure you have plenty of nonalcoholic drinks available.

Fifth, consider having an awards ceremony, a gift exchange, or raffle drawing at the end of the evening—and close the bar an hour beforehand. That’ll give people a reason to stay, and time to sober up.