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Dec 2, 2025

Holiday parties: Follow these tips to minimize liability

Staff enjoying holiday party

The holiday season is rapidly approaching, and a company holiday party is a great way to reward employees for their hard work. As we enter a festive season, here are some recommendations and tips to safely enjoy a celebration with coworkers and reduce liability for your organization.

No harassment: Remind your workers that the anti-harassment and social media policies apply to all company-sponsored events, including holiday parties, and to any behavior that might affect the work environment. Managers and supervisors should be informed that they are responsible for promptly addressing any inappropriate behavior and to follow up with HR as needed.

Limit alcohol consumption: The use of alcohol at company parties increases the risk of liability to your organization. Employers have been held liable when intoxicated workers left a work-related event and caused injuries or property damage in car accidents. If you choose to offer alcohol, use a licensed bartender and hold the event off-site. Issue drink tickets to limit the number of alcoholic drinks per person and provide unlimited sodas or other nonalcoholic drinks. Instruct your managers and supervisors to be on the lookout for anyone who appears intoxicated and be ready to call them a cab or rideshare if needed.

Inclusivity: All employees should feel welcome at your event, regardless of religious affiliation. Avoid religious themes, naming conventions, and decorations, unless you are ready and willing to accommodate others’ beliefs. One simple step is to call it a “holiday party” or “year-end celebration” and use neutral decorations at your event.

Wages: If nonexempt (overtime-eligible) employees are required to attend a holiday party, you must pay for their time. If you don’t want to pay for their time, make it clear that attendance is optional.

Members: For more information, contact your Vigilant Law Group employment attorney and check out our Legal Guide, Company Social Events and Liability.

Vigilant wishes you and yours a safe and joyous holiday season.

This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult legal counsel.
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About the Author

Chris Edison

Employment Attorney Vigilant Law Group
  • Attorney licensed in Oregon & Washington
  • Earned his BA from Pacific Lutheran University in Tacoma, WA and a JD from Willamette University College of Law in Salem, OR
  • Former football player and aspiring golfer
  • Played the trumpet from 6th through 9th grades

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