labor lawAdivision of labor law center

Traditional holiday parties can be a major liability risk for any employer, whether they are company-sponsored or impromptu gatherings of employees.

Employers who serve alcohol at company-sponsored events may be liable, if an employee chooses to drive under the influence and causes an accident, according to the U.S. Department of Labor. Some companies have been held liable for fatal accidents when the courts ruled that employees attended the parties within the scope of their employment.

When parties are held on work premises, or during work hours, an employee who is injured may be eligible for workers’ compensation. This is true whether the party is officially sanctioned or a spontaneous gathering of coworkers.

In one extreme example, a Chicago-area boutique employee suffered a spinal injury at a holiday party in a local bar. The employee was dancing with her boss’ husband when the inebriated man tried to lift her off the floor and twirl her around. He dropped the employee, who hit her head on the floor. Because the accident occurred at a company-sponsored event, the court ruled that it was “within the scope of employment” and the worker collected a multi-million-dollar workers’ comp settlement.

 According to the National Highway Traffic Safety Administration or NHTSA, each year employers pay (more…)