EMPLOYMENT LAW BULLETIN
Vol. 07, No. 11
Courtesy of ESKRIDGE LAW
TIPS ON LIMITING LIABILITY AROUND THE HOLIDAYS
The holiday season is a great opportunity to boost employee morale but can also be a possible cause for concern for employers. The potential for employer liability at this time of year ranges from politically incorrect religious themes to alcohol fueled sexual harassment, and everything in between. Up to date policies that address all the issues highlighted below are a necessary and effective way to reduce litigation stemming from your company's holiday traditions.
Inducing Alcohol
If you plan on including alcohol in your celebration, limit your liability by holding the event off site and having a third party serve the alcohol to your employees at a cash bar. Try to arrange for transportation after the event at the company's expense. Make sure to let employees know about your company's alcohol policy before the event by either holding a meeting or distributing a memo.
Accommodating Diversity
Whether you plan on throwing a holiday party or just decorating the office, keep the denomination neutral and acknowledge the entire holiday season. Respect the differences your employees bring to the work force and avoid religious references in the title of the party and in your office decorations. Be responsive to your employees' individual beliefs and any requests not to take part in holiday related practices.
Avoid Sexual Harassment
Don't let the relaxed and celebratory mood of the holiday season create a situation where employees are confronted by inappropriate sexual behavior. Holiday parties can be the scene of unwanted sexual overtures that result in harassment lawsuits. Supervisors especially need to be aware that they wear their "supervisor hat" even after hours and off site.
Employer Insurance
Some courts have held that workers' compensation laws include injuries that occur at employer-sponsored holiday parties, even injuries caused by employee intoxication. Review your insurance policies for any alcohol related exclusions and purchase supplement or special event coverage if necessary. If the event is held off site, make sure the venue is adequately bonded and insured.
Employee Gifts
If you decide to give your employees gifts during the holiday season, be aware of the fact that the IRS does not treat all gifts to employees equally. While small gifts (like a turkey or ham) need not be included on the employee's year end stated income as extra wages, a bigger gift (like a gift certificate) must include the value. If you are unsure about whether your employee gifts count as taxable income, consult your tax advisor or call the IRS hotline.
ESKRIDGE LAW may be contacted by phone (310/303-3951), by fax (310/303-3952), or by e-mail (geskridge@eskridgelaw.net.) Please visit our website at www.eskridgelaw.net.
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