Heading off liability angst at holiday parties

By Buck Wargo

Friday, Dec. 18, 2009 | 3 a.m.

Holiday parties are a chance to relax and have fun during tough economic times, but lawyers warn companies should take steps to keep workers in line and limit liability.

Las Vegas employers aren’t immune from legal problems that arise when parties get out of hand, said Mark Ricciardi, managing partner at Fisher & Phillips, a labor and employment law firm.

It can cost hundreds of thousands of dollars in attorney fees and lost productivity if things get out of hand at a party, he said.

“You might remind your employees just because it is a holiday party it doesn’t mean the rules are suspended or put in abeyance,” said Fern Netzky, in-house counsel for Orgill Singer Insurance. “You need to explain the rules don’t go away because you are outside the four walls of the office, just as they don’t go away in the world of social media.”

Ricciardi cited a report from the Society for Human Resource Management that showed 36 percent of employers have reported some type of employee misconduct at holiday parties. That includes excessive drinking, sexual advances, off-color and inappropriate jokes, vulgar language and even arguments and fistfights, he said.

Cell phones with cameras make it even easier for those who have been harassed or harmed to document what happened, he said.

“It is a party, and you are supposed to be relaxing,” Ricciardi said. “In this economy in particular, a lot of companies are cutting back on anything to do with the social side, and when people are at a party, they are tempted to let their hair down and forget the normal behavior guidelines.”

Even if no lawsuits or harassment complaints are filed, problems arising from the party can lead to morale problems, Ricciardi said.

Supervisors need to remember they are still on duty at a company party, and they have a duty to spot inappropriate behavior and investigate what happens, Ricciardi said.

Employees need to understand the risk because there have been cases when someone has had too much to drink and said or did something inappropriate — maybe even to the president’s wife — and found themselves without a job the next day, Ricciardi said.

Companies should restrict the availability of alcohol and deal with situations before they get out of control, Ricciardi said. Those who serve alcohol should be professional bartenders trained to recognize when someone has had too much to drink and knows when to cut them off. It is also a good practice to hand out drink tickets to prevent someone from drinking too much, he said.

“By encouraging employees to drink responsibly and telling them either a hotel room or cab will be provided gives them a lot less excuse of getting in trouble on the way home,” Ricciardi said.

Some companies don’t serve alcohol to keep the events more family oriented and prevent any problems from developing, Netzky said.

Ricciardi said even decorations can cause a problem and suggests banning mistletoe.

Among other suggestions to companies:

• Arrange for designated drivers, reduced cab fares or hotel room rates or offer to pay if employees are impaired by alcohol.

• Do not serve alcoholic punch or other beverages that make it difficult to gauge how much someone has drunk.

• If the party is a dinner, serve only wine or beer in addition to nonalcoholic drinks.

• Provide ample food and entertainment to prevent drinking from becoming the focus of the party.

• Serve foods that slow the absorption of alcohol.

• Designate a supervisor who refrains from drinking to monitor the party and curtail excessive alcohol consumption.

• Invite spouses and significant others to keep an eye on employees and get them home safely.

• Schedule parties on a weeknight when employees are less likely to overindulge.

• Hire an off-duty police officer or security specialist to be present.

• Make sure underage guests and employees are not served alcohol.

• Review insurance policies for alcohol-related exclusions.