With 2025 winding down and the holiday season upon us, many organizations are planning to celebrate another year in the books, boost employee morale, and foster workplace camaraderie. While holiday parties may feel like a break from work, it’s important to remember that company policies, including those against harassment and discrimination, still apply during these festivities. So, let’s make this holiday season merry and bright without any unnecessary legal headaches!

Alcohol and liability: proceed with caution

During holiday celebrations, beer, wine, or your favorite holiday cocktail may help lighten the mood and help colleagues take a load off after a long year. However, with that lightened mood, there’s also potential liability. Remember, a company-sponsored event is still considered a workplace setting, so if a party gets too rowdy, or if a flirtation turns into an inappropriate advance, employers could face serious consequences, including sexual harassment claims, workers’ compensation issues, or even third-party liability if an intoxicated employee causes harm after leaving the workplace event.

These incidents can lead to legal risks and put a serious damper on morale and company culture. Employers should take proactive steps to reduce these risks and prioritize employee safety by:

• Offering lower-alcohol options and serving food. Choose beer, wine, and hard seltzers instead of hard liquor. Pairing drinks with food can slow alcohol absorption and help maintain a balanced atmosphere.
• Using professional bartenders. Hiring trained staff can help monitor consumption, recognize signs of intoxication, and enforce drink limits discreetly.
• Providing safe transportation options. Arrange rideshare vouchers, shuttle services, or designated drivers to ensure employees can get home safely.
• Setting clear expectations. Remind employees that company policies, including those related to harassment and conduct, apply to all company-sponsored events.
• Considering alternatives. Offer activities like games, raffles, or recognition awards to shift the focus away from drinking and keep the event engaging for everyone.

Remember to include everyone in the festivities

This is a good time of year to remember that not all employees celebrate the same holidays. Diversity is a great strength of the workplace, and your celebration should reflect that reality.  Beyond the legal protections provided by laws like Title VII of the Civil Rights Act of 1964, which protects against discrimination based on religion, holiday parties should foster an atmosphere of inclusion where all employees feel welcome, regardless of their cultural or religious backgrounds.

To ensure that your holiday party remains inclusive, consider the following:

• Use neutral terminology. Instead of labeling the event as a “Christmas party” or tying it to a single tradition, use neutral terms like “holiday party” or “end-of-year celebration.” This approach makes it clear that the event is for everyone, regardless of their cultural or religious background.
• Make attendance optional. Participation should always be voluntary, especially if the event is held outside normal work hours. Allowing employees to opt out prevents any discomfort or the perception that attendance is tied to workplace performance.
• Avoid exclusive symbols and rituals. Steer clear of religious symbols, music, or practices that may alienate those who do not share those beliefs. The aim is to create a celebration that is welcoming to all employees.
• Take concerns seriously. If an employee raises a concern related to culture or religion, take it seriously.
• Consider accommodations. Be mindful of dietary restrictions and accommodations for individuals with disabilities when planning the event.

Inclusivity is not just about maintaining compliance; it’s about cultivating an environment where every employee feels valued and comfortable participating. When done thoughtfully, your holiday celebration can strengthen team connections while ensuring no one feels left out. You may also consider additional festivities to allow all employees to participate equally, even those who may be remote.

Encourage wellness and mental health

The holidays can be a time of joy, but they can also lead to stress and pressure. Employers can support employee well-being by offering flexible scheduling during the peak holiday weeks and reminding employees of available mental health resources, such as Employee Assistance Programs. It’s important to avoid creating an expectation that attendance is mandatory. Encouraging voluntary participation helps reduce anxiety and respects personal boundaries. Simple gestures, such as recognizing achievements and expressing gratitude, can significantly boost morale and foster a positive workplace culture during this busy season.

Holiday party final checklist

Before the party, ensure that you clearly communicate the company’s conduct policies. It’s essential that employees understand that attendance is optional and that transportation plans are in place for those who may require them.

During the event, monitor behavior discreetly and ensure that employees feel included through interactive activities or recognition. These small steps can make a big difference in reducing risk and promoting inclusivity.

The holidays should be a time of celebration for everyone. By planning thoughtfully and staying mindful of legal and cultural considerations, employers can keep festivities merry, bright, and stress-free.

To the extent holiday festivities are hosted during regularly scheduled business hours or have mandatory attendance, employers should be aware of their wage and hour obligations.

For questions or legal guidance, contact a member of the McNees Labor & Employment Group. We wish you a happy and healthy holiday season!