Think about holiday parties and employer liability

It's that time of year again, which means those year-end, company-sponsored holiday parties are upon us.

Many employers believe such parties are an excellent tool to increase morale and provide a much-needed break to their employees. These holiday parties, however, raise employment issues that all employers and employees should consider before kicking off the celebrations.

First, many employment lawyers would recommend you keep religion out of the party. Consider using terms such as 'holiday party” or 'winter celebration” for your party so that all of your employees feel included.

Employers know they have a legal obligation to prevent sexual harassment in the workplace. This duty also extends to holiday parties. That includes uncomfortable flirtation, inappropriate comments about someone's outfit, mistletoe decorations, gag gifts and Santa asking employees to sit on his lap.

In one case, for example, an employer paid an employee $255,000 for unwelcome sexual harassment, where the supervisor fondled the plaintiff, put his tongue in her ear, and pulled her on his lap at a holiday party - all while another supervisor allegedly cheered him on. A lot of alcohol was involved.

The attorneys' fees to defend the case were estimated at another $150,000. That a total, out-of-pocket cost to the employer of approximately $400,000.

However, in some cases, if an employer can show it took reasonable steps to prevent harassment or the employee did not use the employer's complaint procedures to alert the employer of the problem, an employer can successfully defend itself. If you find yourself dealing with a sexual harassment issue, act promptly - document the complaint, investigate it and, if you find the harassment occurred, discipline employees as if it were a workplace incident.

Another related issue this time of year is the overconsumption of alcohol. Frankly, limiting alcohol consumption likely would have avoided the impaired judgment that lead to the inappropriate behavior discussed above. In addition, inviting employee spouses/partners to the party may keep the inappropriate conduct to a minimum.

An employer can take precautions to prevent the liabilities associated with alcohol. Many employment lawyers would recommend employers hold holiday events free of wine, beer and liquor all together.

If alcohol will be served, ensure that you hold the party off-site at a bar or restaurant with professional bartenders and its own insurance; that you serve only wine and beer and not liquor; that an employer limit the amount of drinking by having a specific end time to the party; make employees pay cash for their beverages or offering drink tickets - only two free drinks per employees to control consumption, for example. Employers certainly should provide alternative transportation for those who overindulge.

Any social media postings of the party should be appropriate also.

Even if you may be successful in any lawsuit and found not legally liable for conduct occurring at your holiday party, you may still spend thousands of dollars proving it.

l Wilford H. Stone is with Lynch Dallas Attorneys at Law, wstone@lynchdallas.com