Summer is approaching and company sponsored picnics and softball games are just around the corner but so are liability issues for employers who are holding these gatherings. From impaired driving accidents to sexual harassment charges or worker's compensation claims, events involving over-the-top partying can expose employers to serious risks. Therefore, when planning your company outing this year, be sure to take precautions to minimize your risks.
Usually, the law will not hold the employer responsible for an employee's actions if, for example, the event is held at another employee's house on the weekend and the employee could attend with friends and family. Therefore, if it's after working hours or off the employer's grounds when the employer does not have the means or ability to control employees, the employer is less likely to be held liable. But if the purpose of the social event is clearly business, then some courts may find the employer liable for any employees' inappropriate behavior. If the event is mandatory and takes place at the company pool during work hours, for example, then the court will look at the employer.
What steps can you take to protect your company before you sponsor a summer social event?
Remind employees about any company policies on conduct, substance abuse and sexual harassment that apply to your social event. Post any additional policies that will apply to the event in advance, using every possible communication vehicle, such as displaying the policy on break-room bulletin boards, office e-mails and inside paycheck envelopes to make sure employees know what will be expected of them during this event.
Tell your management team that they are on watch during the event. Their purpose is to maintain professionalism and to enforce policies prohibiting harassment and discrimination. Inform them that they must monitor employees for potential drunkenness and call a cab or enlist a person who has not been drinking alcohol to drive the employee home.
Communicate to your employees that attendance to the event is voluntary, and alcohol will only be served to employees 21 and older. Strongly suggest to employees who intend to drink alcohol that they have a "designated driver" who will not drink and can drive them home. Remind employees that if they choose to become intoxicated or to display inappropriate behavior, they are in violation of company policy. Also, alert them that if an employee becomes intoxicated and chooses to drive anyway, he or she is violating company policy and does so at his or her own risk.
If you are planning an athletic event or one that involves any type of physical activity, your employees need to read and sign an acknowledgement and release form. By signing this form, employees recognize and assume the risks associated with the activity. They should also waive any claims against the employer in exchange for participating in the activity. Additionally, you will need to state that the activity is voluntary.
By taking these preventive measures, you will ensure that your employees and your company will have a safe summer.
