Alcohol at Company Parties: 7 Ways to Reduce Liability

December 13, 2016

Hello Leaders!

Welcome to The Nelson HR Review! Our goal is to keep you informed and help you maintain compliance. Are you planning to have a company-sponsored holiday party and serve alcohol? Personally, I recommend against it, unless it is an overnight party and people who drink stay over, such as having the party in a hotel. However, if you are having a company-sponsored holiday party with alcohol, please read below.

As always, call me at (877) 356-6175 for any questions or assistance with HR issues. Have a fantastic week!

Vanessa G. Nelson

Company-Sponsored Holiday Parties and Alcohol: 7 Ways to Reduce Liability

Office holiday parties can build morale, offer opportunities for more casual interactions among workers, and reward employees for a productive year--but did you know they can also be a source of liability for your company? If you choose to have alcohol at your holiday party, consider the following tips to help keep you and your employees safe:

1. Review your insurance coverage before the party.

- If the party will be hosted onsite, determine whether you are covered for injuries or damage to property if you serve alcohol on your premises. You may need to purchase separate special event coverage or an additional liquor liability policy.

- For gatherings held offsite, such as in a restaurant, request a copy of the venue's certificate of insurance and determine if you need additional coverage.

2. Don't make attendance at the party mandatory. Employees should understand that no work will be conducted at the party.

3. Make it clear before the party that overindulgence and other offensive behavior are not acceptable.

- Remind employees that alcohol is no excuse for illegal or inappropriate behavior, such as sexual harassment.

- Consult your employee handbook and make sure that any company-sponsored festivities are not in violation of the policies in your handbook (such as those relating to an alcohol-free workplace).

4. Avoid open bars.

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