Workplace Events and Employer Liability
It’s that time of year again when employers may be considering hosting in-person or virtual year-end or holiday celebrations with their staff. While everyone wants to have a great time, employers must understand their potential liability when it comes to their staff and workplace functions especially if those events involve alcohol.
According to the law there are a number of ways in which an employer may be found liable for the acts of its employees.
Duty of Care is a requirement that a person act toward others and the public with watchfulness, attention, caution and prudence that a reasonable person in the circumstances would. If a person’s actions do not meet this standard of care, then the acts are considered negligent, and any damages resulting may be claimed in a lawsuit for negligence
Where a duty of care is found, the employer bears an obligation to protect employees and third parties from foreseeable risks. This standard of care imposes positive obligations on the employer to take steps to avoid foreseeable risks. The actual steps that the employer must take depend somewhat on the circumstances. A summary of suggested steps is laid out at the end of this article.
Social Host cases establish that an individual who enters a bar or restaurant is an “invitee” (i.e. employee), and stands in a special relationship to the inviter (i.e. employer). This special relationship places a positive obligation on the inviter to protect the invitee and third parties from foreseeable risk of harm caused by any invitees.
It is foreseeable that an invitee who leaves the invitor’s premises in an intoxicated state might injure him or herself and others. Accordingly, the inviter has an obligation to monitor the consumption of alcohol by its patrons. If it is foreseeable that the patrons may drive, the inviter must take steps to prevent the patrons from becoming intoxicated or to prevent an intoxicated patron from driving.
When alcohol is consumed at the workplace with the employer’s knowledge, or during an occasion that is either sponsored or encouraged by the company, the employer is at a risk of being found in breach of its duty as a social host.
To protect against the foreseeable risks to employees and third parties caused by intoxicated employees, employers should take the following proactive steps.
- Limit consumption i.e., consider a 2-drink limit, do not have open bar.
- Monitor consumption.
- Retain the services of a professional bartender trained to identify and appropriately deal with an impaired partygoer.
- Provide non-alcoholic beverages and food.
- Designate a team leader to monitor consumption and assist anyone who has become impaired and requires transportation.
- Address impaired guests immediately; do not wait until they are about to leave
- Make transportation arrangements and clearly communicate them to guests (preferably before the event). This may include:
- Providing taxi chits
- Organizing carpooling with designated drivers
- Arranging for discounted hotel rooms near the event
- Insist impaired partygoers turn over their car keys. Do not take “no” for an answer. If the guest insists on driving, call the police.
- Ensure all management levels lead by example.
- Have appropriate liability insurance in place.
- Have a policy regarding the use of legal intoxicants at the workplace, including at a company sponsored event. The policy should emphasize your concern for employee safety and establish the expectation that employees will not consider a work event an opportunity to ‘party’ to excess.
Intoxication is not the only concern during a workplace event. Office parties can also lead to claims of bullying behavior, sexual harassment, discrimination, fighting, inappropriate posting on social media etc.
Employers are responsible for the protection and safety of their employees, and these rules still apply at an office party. Employers are expected to take appropriate disciplinary action where necessary. It is recommended that employee guidebooks and policies be put in place to cover all of these issues that may arise and to ensure that code of conduct and possible disciplinary action at office events is also covered.
Employers and employees must remember that the office party is an extension of your working environment.
Need help writing or updating your company policies? Contact the HR experts at ThryvX today!
