One of the greatest benefits of a corporate retreat is the resulting camaraderie and good will—and as anyone who has attended a company “happy hour” can attest to, sharing a cocktail or two with co-workers can also result in camaraderie and good will. However, do the two necessarily work together?There isn’t a simple “yes or no” answer, but there are some issues to consider when planning your next management or executive retreat. What you make available, and in what quantities, reflects on you and your organization. Purchasing a keg sends a different message than providing bottles of beer. An open bar will create a different environment than just a bottle of wine with dinner.
Corporate Culture
Do you work for a large international financial institution? Or a small, family-owned auto repair company? How formal or informal your culture and how intimate or reserved the interpersonal relationships should influence your decision to include alcohol on the “menu” and to what extent. In some company cultures, “letting one’s hair down,” may not be advisable, while maintaining a certain degree of professional decorum is advisable.
Liability at Company Events
Alcohol-related auto accidents took the lives of nearly 20,000 Americans last year. You may be opening your organization up to legal issues if you provide alcohol at company-sanctioned events. Should someone be hurt or killed driving home, your company may be liable.
The following is a list of best practices that have been compiled from a number of past clients around the U.S.
- If you have underage employees, do not provide alcohol at company events.
- Only provide “open bars” if you’re staying at a resort or retreat facility so that employees aren’t driving home after helping themselves to libations.
- Limit “cash bars” if people will be driving afterwards by using drink coupons or tickets.
- Consider providing wine and beer only and leaving the hard liquor and mixed drinks out of the equation.
- Don’t mix cocktail hours with other functions, like team building events or meetings. Not only will people be distracted (and in some cases debilitated), but lowered inhibitions can lead to socially awkward situations.
- Know your audience. “I worked for a large Mormon-owned company in Salt Lake City. There were no alcoholic beverages available at any company function. That’s just the prevailing culture. But when I travel to Europe, I’m amazed at how differently they view drinking. In Spain and Italy, for example, you just don’t do deals unless you’ve shared a bottle of wine.”
- Don’t make non-drinkers feel left out. Provide a variety of non-alcoholic options.
- Encourage car-pooling, designated drivers and taxi cabs after company-hosted events if alcohol is served.
Are you hosting a party for your employees, but concerned about the possibility of excessive drinking and being responsible for the resulting damage and injury? Here’s a quick look at your potential liability and what you can do to prevent it.
Unless you sell liquor for a living, your company is unlikely to be responsible for any injury caused by drunk employees under what are called ‘dram shop’ laws (link). These laws generally only apply to commercial vendors of alcohol, such as bars, restaurants and package stores.
But there may be liability under social host laws and what are called ‘respondeat superior theories of legal recovery.
Social host liability is based on the concept that, under certain circumstances, a party host serving alcohol should be responsible for the acts of drunk guests. Laws vary widely by state, with some states not imposing any liability at all on social hosts.
Most states impose liability on social hosts where:
Alcohol is served to a minor
The host was reckless in serving alcohol or should have recognized the extent of the guest’s intoxication and not served him or her more alcohol
Whether or not a host is ‘reckless’ in serving alcohol will always be a factual issue to be decided by a judge or jury. A social host should never serve a minor or encourage guests to drink excessive. And whether or not the social event involves business associates and employees, a social host shouldn’t continue to serve a guest after they are ‘visibly intoxicated’ and/or it becomes obvious that they’ve had too much to drink and their judgment or physical coordination is impaired.
Many states also impose liability specifically where the host is an employer and the event involves a business purpose. While laws vary greatly depending on the state, the employer host generally has a greater duty to the employee guest, due to the nature of the relationship and the perception that an employee may feel obligated to attend an office party more than some other social event.
In some states, the legal theory of ‘respondeat superior’ also applies. Latin for ‘let the master answer,’ an employer is responsible for the negligent acts of the employee when the employee is acting ‘within the scope of employment.’ In other words, for the employer to be held liable, the employee must have been acting for the purpose of benefiting the employer and not himself.
Preventative Steps
Although entertaining is often a necessity of doing business, there are many things you can do to lessen the possibility you’ll be held responsible for your employee’s actions after drinking too much.
- Make attendance at the event optional, and avoid discussing business issues. Make sure your employee handbook specifically states that attendance at office social events is not mandatory.
- Make sure no minors are served.
- Don’t hold events involving alcohol during regular business hours.
- If possible, host the event at a restaurant or bar licensed to serve alcohol, where professional waiters can monitor alcohol intake and politely cut off anyone they perceive has had enough to drink.
- Another alternative is to provide everything except the liquor, and host a cash bar. That way, employees have purchased the alcohol themselves, and you are less likely to be accused of furnishing the alcohol directly to your employees.
- Discourage employees from drinking excessively, and stop serving anyone who appears visibly intoxicated.
- One surefire way of regulating how much each employee drinks is to provide employees with drink tickets as the only way to obtain alcohol.
- Encourage employees to use designated drivers and provide alternative forms of transportation, such as free taxis.
A little preparation and thought beforehand can make your business social event less ‘eventful’ in a negative way, and may even save someone’s life.
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