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Yes. Company holiday parties can raise legal issues, including alcohol liability, wage-and-hour compliance, workers’ compensation and religious accommodation.
Serving alcohol increases liability risks, including potential responsibility for accidents caused by intoxicated employees. Employers may limit alcohol (for example, drink tickets), monitor consumption and arrange safe transportation for impaired employees.
Alcohol also increases the risk of harassment claims. Employers should remind employees that workplace policies, including harassment and substance abuse rules, apply at company events.
If attendance is required, employees must be paid for their time. Required attendance during a meal period may trigger meal break violations, even if food is provided.
If the event is outside regular hours and attendance is mandatory, nonexempt employees must be paid and may be entitled to overtime.
To avoid liability, employers should clearly state in writing that attendance is voluntary.
Employees injured at a company event may be eligible for workers’ compensation, especially if attendance is not clearly voluntary.
Employers should be mindful of employees’ religious beliefs. Provide inclusive options and allow employees to opt out of holiday activities.
Reasonable accommodation may be required for employees who do not wish to participate.