Party Time

By Stephanie Dorning, JD, Employment Law Counsel
Published December 13, 2022

With 2022 ending and the holiday season upon us, many employers are celebrating this year’s accomplishments with everyone’s favorite year-end tradition, the holiday party. While a holiday party provides opportunities for employees to connect with one another in a more relaxed environment, it can also open employers to liability if they aren’t careful, particularly when alcohol is involved. But this doesn’t necessarily mean you have to put away the wine bottles and stick to hot chocolate. With the proper precautions, alcohol can be part of a safe holiday celebration at any organization.

Illinois law generally provides that employers hosting parties are classified as “social hosts” and are not liable for alcohol-related injuries that occur during or after an employer-sponsored event where alcohol was served. However, there may still be liability in certain situations, particularly if the conduct occurred “within the scope of employment” of the employee. This means that events taking place during working hours, or where employee attendance is mandatory, may carry increased risk of liability. You can help mitigate these concerns by ensuring that all such events are strictly optional and are scheduled to take place after normal working hours. You can also ask your general liability insurer about event or party insurance, as well as best-practice tips for creating a fun and safe environment for everyone. 

Prior to the event taking place, employers can redistribute their drug and alcohol policy and ensure all employees are up to date on expected standards of behavior. This would also be a good time to remind everyone of your organization’s sexual harassment policies, as holiday parties and other employer-sponsored events may lead to people letting their guard down and engaging in behavior they would normally not consider, particularly when alcohol is involved. 

Driving and travel also present unique challenges, both in terms of liability and employee safety. Fortunately, with the popularity of rideshare services such as Lyft and Uber, there are more ways than ever to help ensure everyone gets home safely after a night of fun. Rideshare companies can provide prepaid codes you can distribute to employees, ensuring that no one has to worry about drinking and driving. 

While no one enjoys focusing on the downside of a good party, incorporating liability and safety concerns into your normal planning routine can help create a safe and healthy environment for everyone, and allow all participants to relax and enjoy themselves during the celebration.

HR Source members with questions should contact us through the HR Hotline online or at 800-448-4584.