It’s that time of year again! The holidays are right around the corner, and businesses are gearing up for parties and events—which always brings plenty of questions and concerns. We’re here to help! 

We thought it would be a great time to remind everyone of some common issues that tend to pop up during this (somewhat crazy) time of year—a quick annual refresher to keep everyone on the right track.

Below are some of the most common questions and compliance concerns that come up this time of year—along with a few tips to help you stay merry and maintain peace of mind.

Holiday Party/Event Attendance: Paid or Unpaid Time
Perhaps you’re celebrating the holidays to be social (and jolly), but compensation may need to be provided in some cases. 

Exempt employees will get their usual salary, so compensation happens automatically for them.  

For non-exempt employees, here are four questions to ask yourself:

1. Are they helping organize or manage the party/event?
2. Does the event occur during any portion of normal work hours?
3. Is attendance required, or would an employee be judged negatively for non-attendance?
4. Will work concerns be part of the party? For example, presenting end-of-year summaries or forecasting next year, employee recognition presentations, or other matters of concern to the business. 

If the answer to any of those is “yes,” then any non-exempt employees attending the event may need to be paid for their attendance. 

Determining compensation for these events is really fact-specific. Each employer has a unique scenario, and one small adjustment to a planned party/event can mean the difference between being paid or unpaid, so seeking guidance on this, in advance, can make all the difference and prevent problems.

When in doubt, document your decision-making process and the reasoning behind it—especially if you decide the event time will be unpaid.

Company-Sponsored Event Liability
Even if your holiday party is held after hours or off-site, it’s still considered a company-sponsored event. That means the employer could, in some cases, be held responsible for employee conduct, accidents, or other issues that arise. It’s smart to double-check that your liability insurance and workers’ compensation coverage extend to company events, and to remind employees that professional expectations still apply. 

Remember that serving alcohol at a company event can also raise your risk exposure—both from a safety and liability standpoint—which is why coverage verification is so important before the party.

Holiday Parties: Alcohol Concerns
Any time alcohol is available, the potential for negative employee issues increases. Obviously, not serving alcohol at the party would likely solve that problem, but many employers still opt for cocktails. So, if you plan to serve alcohol at this year’s party, consider limiting the risks by utilizing the following tactics:

• Require employees to pay for drinks, or consider utilizing a drink-ticket system in which each employee is entitled to two drinks on the house and no more. 
• Choose when to have alcohol available, either pre-dinner or during dinner only. Close the bar at least one hour before the party ends. 
• Limit alcohol to beer and wine rather than hard liquor, due to reduced ABV.
• Invite families and/or clients and vendors. The presence of employees’ family members or other work-related colleagues can encourage employees to be on their best behavior. 
• Designate a person(s) to monitor employees’ behavior. Items to look for include: how much employees drink and whether they have a safe ride home; employee interactions, especially those who become “too friendly” with each other or if tempers rise; any other employee activities that may be dangerous to themselves and others. 
• Cover all transportation bases by arranging for a taxi or car service for employees to get to and from the event; 
• Prepare for the possibility of pre-partying. Impose a rule that employees who arrive buzzed or drunk will not be admitted to the party, and a pre-designated driver (e.g., an employee or a taxi) will take the intoxicated employee home. 

Remind employees about your office alcohol and substance abuse policy and the rules of behavior, public intoxication, fighting, harassment, etc., that will be enforced at the party. These reminders can be done via emails or memos a few days before the party. 

Holiday Parties: Marijuana Concerns
Many states have legalized recreational marijuana. If you’re in one of those states, you may think it could be okay to bring some fun holiday edibles to the party. Like alcohol, this could backfire and is not recommended. 

The first consideration is that bringing marijuana to a party may conflict with your drug & alcohol policy. If you might test employees for being under the influence of drugs and potentially discipline or fire them for testing positive for marijuana, what kind of message does that send if you’re the supplier of those substances at a party?

The second consideration is that dosing with marijuana is tricky—particularly with edibles. One holiday cookie could affect one person very differently than another. Because the effects can take time to appear, some people may eat too much too soon, causing a much stronger reaction than intended. Not everyone responds to marijuana the same. Do you want to be responsible for causing some kind of major issue? 

Like alcohol, people leaving the party under the influence are dangerous and could cause accidents to themselves or others. If this were to happen after their employer supplied the edibles, it could lead to serious liability.

Of course, substance use isn’t the only challenge employers face during holiday gatherings—maintaining appropriate conduct and professionalism is equally important.

Respectful Conduct Reminder
Holiday gatherings can blur the lines between personal and professional behavior, especially when alcohol is involved. It’s a good idea to remind everyone that all company policies—especially your harassment and conduct rules—still apply at work-related events, whether held on or off site. Supervisors and managers should model appropriate behavior and watch for situations that could cross professional boundaries. Reinforcing respectful conduct ahead of time can help ensure your event stays both enjoyable and problem-free.

Social Media and Photo Sharing
In today’s digital age, it’s easy for photos or videos from workplace events to appear online within minutes. Consider reminding employees that your social media and confidentiality policies apply to company-sponsored events, too. Encourage them to be mindful about what they post and to avoid sharing images or videos of others without consent.

Religious Accommodations
As you plan holiday gatherings, remember that not everyone celebrates the same holidays—or any holidays at all. To make everyone feel welcome, consider hosting a “year-end celebration” rather than a specific “Christmas party,” and keep decorations and themes general and inclusive. Celebrating your team’s accomplishments in a way that respects all backgrounds fosters a stronger sense of belonging and inclusion.

While Christmas and New Year’s are the big-ticket holidays this time of year, remember that not everyone celebrates them. For religious reasons, some people may not want to celebrate holidays at all, or have different holidays they prefer. An employer generally has to reasonably accommodate employees with different religious beliefs unless doing so would cause an undue hardship, which is difficult to establish and prove. Not doing so can create liability for the employer. Here are some potential accommodations:

• Allowing observance of a different holiday. For example, taking a day off for Hanukkah. 
• Allowing an employee to not attend a holiday party/function without consequences.
• Modification of non-essential job duties. For example, not asking them to decorate for a holiday they don’t observe.

Any accommodations that are made must be free from retaliation as well. That means employers cannot otherwise adversely affect the employment conditions of employees simply because they asked for and received a religious accommodation. 

Paid Holidays/Office Closures
Christmas and New Year’s Day are very common paid holidays, and some employers also include Christmas Eve and New Year’s Eve. This year, both of these holidays fall during a normal workweek, so any holidays provided by the office are paid per the usual eligibility requirements outlined in an established policy. 

Many businesses close entirely for a week or two during this time. Any applicable paid holidays would be applied even when taking a full week or two off. For any days not covered by a paid holiday benefit, there are three choices for pay:

1. Pay their wages anyway;
2. Take the time unpaid; or
3. Allow employees to use other paid time off benefits (vacation/PTO/personal time). 

Keep in mind that employees who don’t receive pay during office closures—lasting a week or two—could file for and possibly receive unemployment insurance benefits. There are many nuances to how this works, but it is the employees’ right to file for benefits, and employers are prohibited from restricting this or otherwise retaliating, discriminating, or punishing employees for doing so. 

Remote and Hybrid Teams
For organizations with remote or hybrid employees, don’t forget to include them in the festivities. Virtual holiday events, mailed treats, or digital gift cards can help everyone feel connected. If your virtual gathering happens during regular work hours, remember that non-exempt employees may still need to be paid for that time. The goal is to keep your team engaged, appreciated, and included—wherever they’re working from.

Conclusion
The holidays should be a time to celebrate your team’s hard work—not to navigate unexpected HR headaches. With a little advance planning, clear communication, and thoughtful attention to inclusivity and compliance, you can make sure your holiday season stays festive, fair, and fun. Like your shopping list—start early, stay organized, and enjoy the rewards!