Holiday Office Parties Can Be a Source of Liability…
With the holidays approaching, many employers are planning their annual office parties. This year, however, many businesses are electing to skip the festivities. While the risk for liability is clearly heightened in the #MeToo era, there are steps employers can take to keep the tradition alive and protect their legal interests.
Photo courtesy of Alexandra Scelia
Employers Skipping Holiday Office Parties in 2018
This holiday season, 65 percent of businesses plan to hold a holiday party, according to a recent survey by Challenger, Gray & Christmas, Inc. That’s the lowest number since the height of the recession in 2009, when 62 percent of companies held holiday festivities.
Of respondents that are not hosting a party this year, almost 27 percent of companies reported they never hold company parties, while nearly 8 percent reported they are not holding a party this year for various reasons.
“The low number of corporate celebrations does not appear to be due to economic reasons. Companies are sitting on tax savings and generally report a thriving economy,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc. The report speculates that the decline in holiday parties could be attributable to increasingly remote workforces and the desire to host parties during less busy times of year.
The survey results also confirm that the #MeToo movement is also playing a role. Of those companies that are having a party this year, nearly 58 percent reported they have addressed the #MeToo movement with their staff this year, 33 percent of which have addressed or will address this issue prior to the party. According to Challenger, fears about liability may also have caused many employers to forego parties altogether.
Avoiding Liability Risks at Holiday Parties
Throwing a holiday party can be an effective way to build comradery, boost morale, and recognize accomplishments. Unfortunately, the party can also be a source of liability. The two main risks often go hand in hand — inappropriate behavior and alcohol.
Sexual Harassment
When they are outside of the office environment, employees may feel more comfortable engaging in bad behavior that could be construed as sexual harassment. Therefore, it is important that employee handbooks or other documents make it clear that policies extend to social functions. Employees should also be encouraged to report incidents involving misconduct at workplace events, even if they occur outside of the office or outside normal business hours.
The holiday season is also a good time to remind employees what is and what is not considered acceptable behavior. For instance, while mistletoe is a Christmas tradition, it can be a lawsuit waiting to happen in an office environment, as an unwanted kiss could be grounds for a sexual harassment claim. Suggestive gifts and/or inappropriate gifts should also be prohibited. Managers and executives can also set the tone by exhibiting professional behavior.
Addressing sexual harassment is particularly important this year. Harassment suits are traditionally among the most frequent sources of employment liability for New York and New Jersey businesses. In the wake of the #MeToo movement, sexual harassment claims are on the rise, according to recent data by the Equal Employment Opportunity Commission (EEOC). It recently reported that new charges of sexual harassment jumped by 12 percent in FY 2018, which is the first increase in eight years.
Serving Alcohol
Many companies serve alcohol at their holiday parties, which can increase the risks of inappropriate behavior. To reduce the risks that employees have too much holiday “cheer,” businesses may want to consider holding the event during the day, limiting employees to certain number of drink tickets, and serving ample amounts of food. While not related to sexual harassment, it is also always wise to ensure that employees can find a safe way home.
If you have any questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Gary S. Young, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
