Holiday Liability Risk: Here's How To Avoid Them This Season

In the event that your holiday is full of good cheer, here are some tips to reduce your holiday liability risk.

However, for many New York and New Jersey businesses, it can also bring legal headaches. From the manager who has too much to drink at the office party to the disgruntled worker forced to work the New Year’s Eve shift, it is imperative to take steps to address  a potential holiday liability risk before it turns into a costly holiday lawsuit. Below are a few tips to reduce your holiday liability risk:

Holiday parties

While businesses have good intentions when throwing holiday parties, the parties are often the biggest source of liability this time of year. The most frequent culprit is too much holiday cheer. Therefore, businesses should consider holding the event during the day, limiting employees to a certain number of drink tickets, serving ample amounts of food, and providing a safe way home. To deter bad behavior at office holiday parties, it is also advisable to include provisions in your employee handbooks or other documents that make it clear that the policies extend to social functions by or for the business.

Employee leave

Employers are generally not required to observe Christmas or New Year’s, or to pay employees for time off during the holidays. However, if your business does observe certain holidays, it is important to have a written policy in place. Issues to consider include the specific days the business is closed, how holiday shifts are assigned if the business remains open, and what happens if an employee works during a paid holiday (i.e. is the worker granted a “comp” day?) Of course, the policy should also be as uniformly enforced as is feasible. Letting some employees leave early on Christmas Eve, while others are required to stay until closing, may not only breed discontent among your staff, but could also be viewed as discriminatory.

Holiday decorations

While local governments and other public entities must contend with the First Amendment, private businesses are generally free to decorate their offices how they wish. However, to play it safe and avoid alienating employees of different religions, it is advisable to keep decorations secular or ensure that the display recognizes a variety of religious backgrounds. Also, while mistletoe is a Christmas tradition, it is also a holiday liability risk. Hanging mistletoe can be a lawsuit waiting to happen in an office environment, as an unwanted kiss, or even a hug, could generate a sexual harassment claim.

Have you had any instances where your business was subject to a holiday liability risk? Feel free to leave a comment below.