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by Katie Culliton, Senior Editor, CalChamber
The 2026 National Collegiate Athletic Association (NCAA) men’s basketball tournament, aka “March Madness,” — one of the most exciting sports events of the year that involves millions of both die-hard and casual fans — kicks off on March 17 with the “First Four” games being played.
From now until the crowning championship game on April 6, basketball enthusiasts nationwide will be glued to their screens. Without a doubt, many of these screens will be at workplaces, because unlike major spectacles like the Super Bowl or NBA Finals that are played largely outside of working hours, the NCAA Championship series is 67 games played out over the course of three weeks, with games played every day, virtually all day — so employers should be mindful of the potential for accompanying distractions and productivity loss.
In fact, in 2025, these distractions can cost businesses up to a mind-blowing $17 billion per year in lost productivity, according to a 2025 Wallet Hub report, which also suggests that 25 percent of employees are willing to skip work to watch March Madness and 33 percent will watch it at work.
Plus, the tournament is also one of the busiest times of the year for sports gambling, which is illegal in California workplaces.
But it's not all bad! The tournament also presents opportunities for employers to introduce creative ways of boosting morale and employee engagement. Here are some things for employers to keep in mind as March Madness (or any other workplace distractions) gets started.
Sports betting is still illegal in California — which includes office betting pools if money is exchanged — despite two failed ballot propositions.
Under California Penal Code section 337a, individuals and employers who participate in gambling in the workplace may be fined or imprisoned. Additionally, Penal Code section 336.9 covers betting pools with less than $2,500 at stake and provides for a maximum fine of $250 for participating in such a pool.
Yet, last year, 63 percent of workers said they planned to fill out a March Madness bracket with colleagues and 33 percent would participate in office pools — where employees contribute cash to participate, which is then awarded to the winners.
Given the repercussions for engaging in illegal sports gambling, employers must be mindful of illegal activity occurring at their worksites and avoid encouraging any form of gambling for financial gain. As a matter of policy, employers should prohibit all forms of gambling in their workplace as they would any other illegal activity.
For example, if an employer allows employees to host a baby shower at the office where every guest who brings a pack of diapers is entered into a raffle for a prize, it may prove difficult to justify disciplinary action against employees who have a cash-award March Madness bracket contest.
Some forms of gambling may appear harmless, but employers should be consistent — gambling is gambling. Sending out a memo about gambling in advance of March Madness or other major sporting events may help remind employees of the workplace’s no-gambling policy.
Beyond potential workplace gambling, sporting events — especially those games played during the workday like during March Madness or soccer’s FIFA World Cup — can distract employees during work hours.
Employers can limit the distractions by controlling internet usage time and the ability of employees to stream games to their work systems. They also should reinforce their policies regarding internet use, noting what's acceptable and unacceptable. Make it clear that employees should not watch games live while on work time without authorization.
Employers should review any policies they have regarding use of personal tablets or smartphones during work times. Such policies are highly recommended and certainly not just for this purpose. Companies need to inform their employees that using personal devices to engage in conduct that’s taking away from productive work time and/or inappropriate for work — such as placing monetary bets for money — is against company policy and grounds for discipline.
But even with all that said, employees are still going to watch or follow the games during working time. It’s inevitable. According to a 2025 Action Network report, employees are checking the scores often — 34 percent say they spend up to an hour daily, 20 percent spend two hours daily and 14 percent spend three hours daily. Only 10 percent claimed they didn’t check scores at all. Plus, workplace productivity can still suffer as 40 percent of March Madness fans admit they’ve called in sick to watch games. So, what should employers do?
March Madness isn’t all bad. Surprisingly, March Madness — and other sporting events — can improve office morale and encourage co-worker bonding. For example, there’s nothing illegal about having an interoffice bracket pool for bragging rights in lieu of cash. Or, if there’s a game between teams that are represented by alumni at your company, you could arrange a party and set aside work for a couple of hours so those employees and their coworkers can enjoy the game.
Employers who don’t have those options still might set up designated times for employees to talk about the tournament, such as sponsoring a weekly pizza lunch during March Madness games or a Friday morning donut break. Hosting a team color day where jerseys or other team colors can be worn may also be appreciated by your workers and serve as a way to focus the distraction in a positive manner. Employers might also allow all employees some schedule flexibility for important games.
All this is not (merely) to allow employees to slack off during work hours. In a 2022 Perceptyx study, 70 percent of employees said employers easing their restrictions on non-work-related media would change their view of their company for the better. And a fun workplace has benefits for both the employer and the employee:
Whether or not employers believe talking about, watching or even placing friendly, nonmonetary bets on games can be good for morale, limits must be put in place. After all, work must get done — and some things are just not appropriate for the workplace, especially illegal gambling.
While your company should take measures to prevent excessive loss of production and illicit activity, many companies find that taking a balanced approach is often the wisest approach. Happy employees usually have higher levels of job satisfaction, which is essential in retaining an effective and productive workforce.