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.
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
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!
