Everyone knows "all work and no play" can make the workplace dreadful. Stress, tension and boredom can wreak havoc on productivity and morale.

To ease some of the stress and to make workers feel valued and important, many employers sponsor outings and events during the year. Holiday parties, family picnics, outings to local sporting events and even the occasional off-site meeting are all designed to give everyone a break from the normal routine.

In all the fun and excitement, no one should lose sight of the potential legal problems these types of events and outings can bring.

When & Where is the Event?

Typically, employers are responsible for accidents and injuries that happen on their premises during work-sponsored events. If alcohol is served, the employer's potential liability for alcohol-related injuries goes up.

Many events are held in restaurants or bars. This helps employers avoid some liability for alcohol related injuries to - or caused by - intoxicated employees, but employers still need to be careful.

For an off-site event, the employer may be responsible if workers are injured while traveling to or from the event, even if it's after business hours. If possible, it's a good idea to arrange for employee transportation, such as bussing workers from work to the event.

Good Behavior is the Key

Your employee handbook should spell out very clearly how employees are expected to behave at work-sponsored events, and the consequences for bad behavior. Bad behavior includes sexual harassment or even indecent exposure.

Before any type of event, it's a good idea to remind employees about your company's sexual harassment policy and your expectation that they act responsibly.

Consequences

Most employees are at-will, meaning you have a lot of discretion in deciding how to punish an employee for misconduct during an event, including terminating the employee.

For employees with employment contracts, the contracts should mirror the "bad behavior" language in your employee handbook. The contracts should also specify that such behavior amounts to just cause or good cause allowing you to fire the employee.

There's no reason why you shouldn't celebrate and have fun with your employees. Making sure everyone knows and follows some rules will help all of you enjoy the event.

Questions for Your Attorney

  • What responsibilities do I have if I let my employees bring guests to a work-sponsored event?
  • Can I avoid potential legal problems by making sure my employees know a work-sponsored event is optional?
  • What's the first thing I should do if an employee complains about a co-worker's unwanted sexual advances at a company party?