Employer Liability FAQ on Holiday Office Party
FAQ: Every year at our office holiday party, there are several people who become intoxicated and behave inappropriately. As an employer, can I be held liable if one of my employees sexually harasses another employee or becomes intoxicated at the office holiday party and then gets into an automobile accident and injures an innocent party?
This is a great question this time of the year when employers are holding office holiday parties. As you plan your office holiday party, you probably have the best of intentions for the party. This is your way of showing your employees your appreciation and a way for your staff to unwind and socialize. However, the potential for liability is enormous between sexual harassment claims and the dangers of drunk driving. If one of your employees sexually harasses another employee at your holiday party, it is still a work related incident. Similarly, any discriminatory conduct or unwelcome racial jokes or obscenities at the holiday party can also be used against you in a discrimination lawsuit.
You could face great potential liability if you are serving alcohol and one of your employees drives home intoxicated and injures a third party. Although the potential for employer liability varies from state to state, all employers should be aware of the following case.
An Illinois Appellate Court recently found that Korean Airlines could be vicariously liable for its employee's negligent and intoxicated conduct which lead to a deadly car accident after a dinner party. The Court held that employer liability "can arise from acts, omissions or, in the case of respondeat superior, the employer-employee relations, so long as the employee's negligence is within the scope of employment." Accordingly, Korean Airlines could be held liable if it can be shown that the employee was acting within the scope of her employment at the time of the accident. Accordingly, if you make employees come to your holiday party as part of their employment or if you have the party during working hours, you could be potentially liable for your employee's acts caused by intoxication.
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