🎄Company Holiday Parties: Festive Fun or Legal Minefield? 

As the holiday season approaches, many San Jose and Silicon Valley, businesses are planning festive gatherings to celebrate the year’s achievements and foster camaraderie among employees. While holiday parties can boost morale and strengthen workplace culture, they also carry legal risks that employers must carefully navigate under California’s stringent employment laws. 

1. Alcohol Liability and Harassment Claims

Serving alcohol at company events can increase the risk of inappropriate behavior, including sexual harassment. Under California law, employers may be held liable for harassment that occurs at work-related functions—even if the event is off-site or after hours. 

Best Practices: 

• Limit alcohol consumption or hire professional bartenders trained to cut off intoxicated guests. 

• Remind employees that company policies on harassment and conduct apply during the event. 

• Provide transportation options to prevent impaired driving. Options for small companies would include reimbursement for taxis, Uber or Lyft. 

2. Wage and Hour Issues

If non-exempt employees are required to attend a holiday party, that time may be considered compensable under California wage and hour laws. Failure to pay for this time could result in wage claims or penalties. 

Best Practices: 

• Make attendance optional. 

• Clarify whether time spent at the event is paid. 

• Track hours accurately if employees perform work-related tasks during the party. 

3. Discrimination and Inclusion Concerns

Holiday parties that focus solely on Christmas or other religious traditions may alienate employees of different faiths or beliefs. California law prohibits workplace discrimination based on religion, and employers must be mindful of inclusivity. 

Best Practices: 

• Use neutral themes like “Winter Celebration” or “End-of-Year Gathering.” 

• Accommodate dietary restrictions and religious observances. 

• Avoid religious symbols unless the event is clearly voluntary and inclusive. 

4. Workers’ Compensation Risks

Injuries sustained at company-sponsored events may be covered under workers’ compensation, especially if the event is deemed work-related. This includes slips, falls, or other accidents during the party. 

Best Practices: 

• Choose a safe venue and conduct a risk assessment. 

• Avoid activities that could lead to injury (e.g., physical games or contests). 

• Ensure proper supervision and emergency protocols are in place. 

5. Privacy and Social Media

Photos and videos taken at holiday parties can end up on social media, potentially violating employee privacy or damaging the company’s reputation. 

Best Practices: 

• Get consent before sharing images online. 

• Set clear guidelines for social media use during and after the event. 

• Respect employees’ preferences regarding public exposure. 

🎁 Final Thoughts 

Holiday parties should be a time of celebration, not litigation. By proactively addressing these legal pitfalls, San Jose employers can create a joyful and compliant event that reflects their values and protects their workforce. 

If you have questions about planning a legally sound company event or need help updating your workplace policies, our employment law team is here to help. Contact us today for a consultation.

If you feel like you have been injured, or harassed by your employer, or colleague at a company holiday party sponsored by your employer, our top employment attorneys are here to help.