Says employment law expert Kelly O. Scott, " 'Tis the season to be careful." Scott, who heads the employment law department at California firm Ervin, Cohen, & Jessup, is referring to holiday parties planned by employers. Not that Scott's against festivities­--far from it. "Given the economy and recent tragic events," he says, "employees could certainly use the diversion" of a celebration with their co-workers.

"There's always a first time for catastrophe," he warns, no matter how unblemished a record of past parties an organization may have. Overdrinking is the major threat, because it can lead to "slipping and falling, unwanted sexual advances, fights between co-workers, and car accidents, to name a few." So Scott has plenty of advice for how to plan a safe holiday gathering.

In first place, we think, is his recommendation that employers restrict alcohol consumption. (Don't assume that you must make drinks available; consider an alcohol-free party.) Reasonable limits include serving only beer and wine and issuing drink tickets. That is, if you provide only two free beverage servings to each employee and ask that additional drinks be purchased, there's a measure of control. You can also limit the hours during which alcohol is served, closing the bar once the meal has begun. Another tip Scott offers is to designate a group of supervisors to act as chaperones during the event, particularly watching for intoxication.

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Speaking of food, making it a big part of the celebration is another way to reduce the effects of alcohol consumption. But, Scott warns, "bar snacks and other types of salty foods designed to increase thirst should be avoided at holiday parties." Another wise suggestion is to build in party activities, such as contests, raffles, or karaoke. "A party that offers nothing more than music and alcohol increases the possibility of excess drinking," cautions Scott. He also recommends holding the party away from the workplace, for two reasons. First, the owner of the facility you choose will be responsible if an employee is injured there. Second, an unfamiliar location encourages employees to carpool, or you could even rent a bus for transportation. That minimizes the risk of car accidents in transit.

Inviting outside guests has pros and cons, we think. Scott suggests that including spouses and/or important clients or customers will tend to make employees more cautious and circumspect in their behavior. But we've noticed two downsides to that approach: One is that work groups tend to stay together rather than more generally mixing with employees from different functions and departments. And we've heard about incidents where even the presence of key clients didn't deter an overdrinker, who then behaved in a way that embarrassed both himself and the company.

The best part of partying with spouses and others, Scott believes, is that family members then feel included in the employee's work life, increasing both job loyalty and enjoyment at home.

But couldn't there be an advantage, we asked, in holding a celebration just for employees at the worksite during the day? That way, you can limit the party hours (from 2 to 4 p.m., for example) and thus the drinking. Scott agreed, indicating that his own firm holds two annual parties—­an outdoor, off-premises, daytime, picnic-style celebration for employees and families and an office celebration at holiday time for employees only.

Another, much more conservative approach to avoiding liability centers on what Scott calls a party disclosure/waiver. This is a carefully crafted statement to the effect that participation in an employer-sponsored party is completely voluntary on the part of each employee. It also informs employees that they will be required to behave responsibly on their way to and from the party and during the festivities, with an emphasis on alcohol consumption. One feature of the document should be to encourage employees to carpool to the event and/or to choose a designated driver in the family or work group in case of overconsumption. Each employee is then required to sign his or her understanding and acceptance of the waiver.

In the event that a fight, car accident, or fall occurs anyway in connection with the party, have employees entirely waived their right to seek damages from the employer? No, Scott acknowledges, but such a document can protect you from workers' comp claims, since employees have signaled that they know the party is not a required part of their job performance. Most of all, you've put them on notice that you expect proper and safe behavior.

Finally, in addition to appointing some supervisor "chaperones," Scott advises that all supervisors participate in a preparty refresher on the organization's antidiscrimination and antiharassment policies. This could provide a timely opportunity for the annual training update as well as a chance to role-play some specific party scenarios that could occur when a very informal atmosphere prevails, and some employees have had a few too many. What should supervisors watch out for during the party? What steps should they take immediately if someone behaves inappropriately? How should they respond to a subordinate who later complains of something that happened at the party?

So plan well, and then—enjoy!

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