How to avoid a holiday party lawsuit

1. Celebrate The "Holiday" Season

Title VII of the Civil Rights Act of 1964 prohibits religious discrimination and requires employers to accommodate employees' religious beliefs. Beyond this legal requirement, taking religion out of the equation ensures that all employees will feel included, regardless of their beliefs.

Make your "Christmas Party" a "Holiday Party." When decorating, opt for seasonal as opposed to religious imagery. For example, choose pine trees, snowflakes, and poinsettias over nativity scenes and menorahs. If you do display religious imagery, be inclusive of multiple religious beliefs.

Further, nothing breeds malcontent like "mandatory fun," so consider making your holiday party optional for those who may have a religious objection or otherwise do not wish to attend. 

2. Drink Responsibly – Or Not At All

It's the question on everyone's lips: will alcohol be served at the party? Alcohol has the same effect regardless of the environment. It loosens lips, lowers inhibitions, and sends good judgment out the window. People who are drinking often say things out loud that they would normally keep to themselves: personal information, offensive comments, suspicions, rumors. Many workplace parties continue after the "official" event, resulting in more drinking.

The problem is that, at a company party, employees are still employees and supervisors are still supervisors. Their actions can still generate legal liability for the company. Liability aside, an employee who is offended by an inappropriate remark will still feel offended the next day, which can create harmful friction in the office. 

When the party ends, employees need to get home. Every 51 minutes, someone in the U.S. dies in an alcohol-related motor vehicle crash. In most states, establishments that serve alcohol can be liable for their patrons' DUI accidents. Regardless, employee safety is paramount. 

Consider having a holiday party during the day or in the middle of the week, which may discourage excessive drinking. If you do serve alcohol, don't let employees pour their own drinks! Instead, hire a professional bartender (who is comfortable refusing service if necessary) and consider using drink tickets or a cash bar to limit over-consumption. Make certain that you offer non-alcoholic drinks and serve plenty of food, so nobody is drinking on an empty stomach. Implement a "no shots" rule. Close the bar before you shut down the party. 

Even if you don't serve alcohol—but especially if you do—recruit a few people beforehand to "chaperone" conduct during the party, and as employees are departing. The potential impact of insisting that someone take a cab cannot be overstated. Even better, offer to pay for cabs.

3. Keep Your Hands To Yourself

In the relaxed atmosphere of office parties, some employees become flirtatious or "touchy"—even more so after a few drinks. Hosting a party off-site can reduce your company's responsibility for alcohol consumption. At the same time, an off-site location can heighten the sense that office standards of conduct do not apply.

If your policies prohibit workplace fraternization, remind employees of this policy before the party. Make employees aware that the dress code is "office festive," not "club festive." Inviting spouses and significant others not only creates a sense of community, but also reinforces standards of appropriate behavior. Consider spouses your "volunteer chaperones."

Dancing is a prime opportunity for physical contact of both the unwelcome and the (perhaps too obviously) welcome variety. If your party includes dancing, be prepared to separate employees like a chaperone at a sixth grade dance.

4. Give The Gift Of Peace (Of Mind)

Many offices celebrate the holidays with gift exchanges, whether direct (like "Secret Santa") or indirect (like "Yankee Swaps"). Direct exchanges are risky, because an employee who dislikes another employee might express that dislike through a "gift." Even worse, employees might give gifts that are offensive or inappropriate.

By setting clear monetary limits and guidelines for appropriate gifts, indirect exchanges reduce these risks. If you hold a gift exchange, make sure employees know participation is voluntary. Don't pressure employees to participate, as they might be short on cash.

When you implement these steps, expect pushback. Someone will always accuse you of taking all the "fun" out of the celebration. Remember, first and foremost, you are an employer—not a cruise director. Your job is to mitigate the risk of legal liability. No "party Grinch" accusation will create as much work for you—or cost the company as much money—as a post-party harassment (or other misconduct) claim.

Within these guidelines, there's plenty of room for a fun holiday celebration that brings joy to the whole office. Happy Holidays!