Social Host Liability When Alcohol Is Involved

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COMPANY SPONSORED EVENTS - Social Host Liability When
Alcohol Is Involved
The courts increasingly are recognizing the legal responsibility of a host who serves
excessive alcohol at a social event. Employers are not immune to lawsuits arising from
post-party auto accidents in which alcohol has played a role. Accordingly, employers
should take steps to minimize their risks this area.
To Serve Or Not To Serve
Some employers avoid potential liability by making their holiday parties alcohol free. For
example, a number of companies have moved to family-oriented affairs in which
employees' children are invited and NO alcohol is served.
Other employers attempt to put the liquor liability risk onto a third party by holding the
functions at a facility where the alcohol is served by a licensed party. For example, some
employers rent rooms at a restaurant or club where the alcohol is served by the restaurant
or club.
Another approach used by some employers is to provide everything except the alcohol
and utilize a cash bar. This further removes the employer from the act of providing the
alcohol.
Points To Consider
Make attendance voluntary
Do not keep records or lists of attendees
Avoid holding parties during regular working hours
Hold parties off site
Do not hand out awards or bonuses at the party
Do not conduct business at the party
Get employees involved in planning the party
Protective Steps
Make sure all employees know your workplace alcohol and substance abuse
policy and that the policy addresses the use of alcoholic beverages in any work
related situations and office social functions.
Post the policy. Prior to the office party, use break room bulletin boards, office e-
mail and paycheck envelopes to communicate your policy and concerns.
If you do serve alcohol, make sure employees know that they are welcome to
attend and have a good time, but that they are expected to act responsible.
Make sure there are plenty of alternative, non-alcoholic beverages available.
Eat and be merry! Have plenty of food on hand.
Distribute free taxi passes permitting an employee and/or their family members a
ride home.
Designate a member of your management team to "monitor" employee drinking
and assist anyone who has a need for special transportation.

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