Reducing Holiday Liability with 'The Company Party Checklist'

Ah, the office holiday party. At best, an awkwardly enjoyable fishbowl of free booze and treats on the company dime; at worst, a festival of liability that presents an open invitation to inappropriate canoodling, drunken slurs, and unwanted advances amongst employees, any one of whom might one day quit and sue you for fostering a hostile work environment, citing events that occurred one fine December evening when everyone was “supposed to be” having a good time.

Which is why every year, Proskauer labor and employment partner Enzo Der Boghossian gets phone calls from current or prospective clients looking for advice about corporate holiday party-related incidents. “It’s just become a routine,” says the Los Angeles-based Der Boghossian, who has been practicing labor and employment law for almost his entire career.

In-house attorneys, take note: As a much-needed ounce of prevention, this year Der Boghossian has put together a checklist of precautionary steps companies can take to mitigate the risks of the holiday party.

First, how can things go so very wrong amongst caroling co-workers? The presence of alcohol at the company party is certainly one explanation, says Der Boghossian. But so is another equally important factor: the lowering of inhibitions that can be associated with holiday cheer. “I don’t want to be a humbug or Scrooge about it, but when employees forget that a holiday party is a work function and start behaving as if they’re out at a local bar or a local nightclub, that’s when you run into problems,” he says.

Occasionally known as “The Grinch” or the “P.C. Police” (though never the “Fun Police,” to his knowledge), Der Boghossian recommends:

• Circulate a memo reminding employees that the holiday party is a business-related function and appropriate conduct is expected.
• Circulate the company’s anti-harassment policy a few days before the event, and remind everyone that the policy covers the party, and includes offensive touching and jokes, such as those that involve sexual, racial, or ethnic subjects.

Whether the company is splurging on a fancy venue (think Google renting out the New York Public Library for its 2011 bash) or hosting a potluck in the office breakroom, the party is still an extension of the workplace, says Der Boghossian.

Which means he thinks it’s a really good idea to:

• Hold the party at establishments with liquor licenses and professional bartenders. Instruct bartenders not to serve employees who are visibly drunk, and limit partygoers to two drinks per adult.
• Depending on your experience at prior years’ parties, consider serving only non-alcoholic beverages.