Your Holiday Party Employer’s Guide: Cheers without the Claims

The holiday party is supposed to be the fun part of the year. It is also where a surprising number of employment problems start. A little planning on the front end keeps the celebration from turning into a claim.

Alcohol is the Usual Culprit

An open bar loosens everyone up, which is exactly the problem. Over-served employees lead to poor decisions, accidents on the drive home, and the kind of behavior that lands on HR’s desk Monday morning. An employer can face liability for what happens when the drinks keep coming. According to the National Highway Traffic and Safety Administration (NHTSA), 1038 people died in drunk driving crashes in December 2023, the most recent year of data.

Harassment Does Not Take the Night Off


A party is still a work event, and your harassment policy still applies. Relaxed settings and alcohol are a common recipe for comments and conduct that would never happen in the office. If it happens at your event, it can become your problem. In a Penn State study published in Employee Relations, researchers surveyed over 600 U.S. employees and found unwanted sexual attention was significantly higher during holiday parties.

Do Not Forget Wage and Hour


If attendance is required, that time may be compensable for your non-exempt employees. Mandatory fun is still work.

Best Practices for a Smooth Celebration

• Keep attendance voluntary and make it clear to employees that it is.
• Limit alcohol with drink tickets, a shortened bar, or a cash bar, and always offer food and non-alcoholic options.
• Arrange rides or reimburse rideshares so no one drives impaired.
• Remind managers before the event that conduct standards still apply.
• Keep the celebration inclusive. Avoid tying it to one religious tradition.
• Make sure non-exempt employees are paid if attendance is required.

We Can Help You Get It Right

A great party and a compliant one are not mutually exclusive. If you want to celebrate your team without the day-after headache contact us and we will help you plan ahead.

Disclaimer: This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Employment laws vary significantly by state and circumstance. Please contact our office regarding your specific situation.