Company-sponsored holiday parties are a fun way to celebrate the season and maintain employee morale at the same time; however it’s important to note that they can also result in unexpected legal liability if you’re not careful. Below are a few suggestions on how to prepare for and avoid liability as you plan your next company party. By keeping these tips in mind you’ll be better equipped to host a more safe and enjoyable event.

Just say “no” to mistletoe.  Every year, numerous sexual harassment complaints are filed based on behavior that occurs during office holiday parties. Consider combating these complaints by refreshing your staff’s memory about your company’s anti-harassment and dress code policy during the weeks leading up to the party. And make sure you leave the mistletoe out of your decorating plans.

Don’t make it mandatory. According to Hawaii Labor and Employment Law, employees are not required to attend holiday parties. Make sure your employees understand this by making them feel welcome to attend, not obligated. After all, it’s not really a party if you’re forced to go.

Avoid religious ties. Whatever your personal beliefs may be, it’s best to keep your company party neutral. While a “Christmas Party” may appear insensitive to some employees, hosting a generic holiday party will help ensure that everyone feels comfortable and included.

Encourage company cheer, control holiday spirits. If you decide to serve alcohol at your event, you should start by checking with your insurance policy to make sure it covers third-party liquor liability. Even if you’re covered, it’s a good idea to limit the number of drinks a person can have during the party. Consider issuing drink tickets and instructing servers to deny additional alcohol to anyone who is visibly intoxicated. Lastly, coordinate cab services, carpooling, or other forms of transportation and let employees know ahead of time that these services will be available.

Host your party off-site. Although hosting the party at your workplace means avoiding rental costs, it also increases your chances of liability, especially when alcohol is involved. Consider holding the party at a restaurant, hotel, or other public venue. If you are going to serve alcohol at your party, make sure the location has a valid liquor license.

This article is for informational purposes only and does not constitute legal advice. Readers should first consult their attorney, accountant or adviser before acting upon any information in this article.

Looking to outsource your HR?

Have a question for one of our HR experts? Click the button below to learn more about this issue or to schedule a free consultation on the advantages of human resources outsourcing.

Sign up for our newsletter

Sign up for our monthly HIVE newsletter and get tips for finding a job, managing a business and advancing your career right in your inbox.

* indicates required

Company-sponsored holiday parties are a fun way to celebrate the season and maintain employee morale at the same time; however it’s important to note that they can also result in unexpected legal liability if you’re not careful. Below are a few suggestions on how to prepare for and avoid liability as you plan your next company party. By keeping these tips in mind you’ll be better equipped to host a more safe and enjoyable event.

Just say “no” to mistletoe.  Every year, numerous sexual harassment complaints are filed based on behavior that occurs during office holiday parties. Consider combating these complaints by refreshing your staff’s memory about your company’s anti-harassment and dress code policy during the weeks leading up to the party. And make sure you leave the mistletoe out of your decorating plans.

Don’t make it mandatory. According to Hawaii Labor and Employment Law, employees are not required to attend holiday parties. Make sure your employees understand this by making them feel welcome to attend, not obligated. After all, it’s not really a party if you’re forced to go.

Avoid religious ties. Whatever your personal beliefs may be, it’s best to keep your company party neutral. While a “Christmas Party” may appear insensitive to some employees, hosting a generic holiday party will help ensure that everyone feels comfortable and included.

Encourage company cheer, control holiday spirits. If you decide to serve alcohol at your event, you should start by checking with your insurance policy to make sure it covers third-party liquor liability. Even if you’re covered, it’s a good idea to limit the number of drinks a person can have during the party. Consider issuing drink tickets and instructing servers to deny additional alcohol to anyone who is visibly intoxicated. Lastly, coordinate cab services, carpooling, or other forms of transportation and let employees know ahead of time that these services will be available.

Host your party off-site. Although hosting the party at your workplace means avoiding rental costs, it also increases your chances of liability, especially when alcohol is involved. Consider holding the party at a restaurant, hotel, or other public venue. If you are going to serve alcohol at your party, make sure the location has a valid liquor license.

This article is for informational purposes only and does not constitute legal advice. Readers should first consult their attorney, accountant or adviser before acting upon any information in this article.

Looking to outsource your HR?

Have a question for one of our HR experts? Click the button below to learn more about this issue or to schedule a free consultation on the advantages of human resources outsourcing.

Sign up for our newsletter

Sign up for our monthly HIVE newsletter and get tips for finding a job, managing a business and advancing your career right in your inbox.

* indicates required