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This Wisdom of the Crowd, compiled from responses posted on the New to In-House eGroup and Compliance & Ethics eGroup* addresses concerns about alcohol at the workplace.
*(Permission was received from ACC members quoted below prior to publishing their eGroup Comments in this Wisdom of the Crowd Resource)
 
Question
There seems to be cultural value, especially at small employers, to allow employees to socialize over alcoholic beverages after a certain hour of the day. It seems to come at a risk, however, particularly at companies with younger employees that drink with some urgency.
What should a General Counsel do to mitigate the risks of such activities short of prohibiting them?
As a follow-up question to the initial post, how do you recommend handling the gossip/rumors that flow after these types of events? Wisdom of the Crowd
Response #1: Probably the most important thing is to have a sound policy on alcohol use in your handbook, and enforce it in a common sense manner.
Our company is one of those small companies you're speaking of that ends up with moderate gatherings some nights. We have a common sense policy about modest, responsible drinking after work on premises, and our culture has developed to follow that policy: For drinking beyond what would be deemed workplace etiquette/decorum, folks leave the premises.1
 
Response #2: As a follow-up question to the initial post, how do you recommend handling the gossip/rumors that flow after these types of events? We also have a number of company social events, and recently, an employee has mentioned to HR that she feels her behavior at these types of events is judged differently than other members of the sales team (e.g. it is ok for the guys to do shots, but the girls are judged if they do) and talked about by other people in the team.2
 
Response #3: That sounds like more of a gender-related issue, leaning towards sexual harassment: the double standard for guys' vs. girls' behavior, the judging of girls' behavior differently. Mull it over with HR, but in my opinion, your sales team needs sexual harassment and sensitivity training, whether you connect the dots for them about the sales woman's concerns precipitating the training or not.
Most importantly, don't let it go entirely, whether you follow my advice or handle it in some other way, her concern needs to be addressed.3
 
Response #4: Just say no. Let folks do their drinking after hours and off property. If it's at all associated with work there is a heightened risk of workers comp, harassment claims, and third party liability for post consumption traffic accidents. If it's off campus and voluntary, the employer is less likely to be exposed to such risks.4
 
Response #5: You also need to check your insurance policies. Many companies DO NOT realize that liability coverage specifically excludes employee permitted or sponsored alcohol on work sites (sometimes permitted under insurance policy only if done by licensed party - caterer, etc). In some states, if the employee has 1 beer at the office, then goes out for a night of binging and causes an accident, the employer will be at least partially liable and again, it will NOT BE covered by insurance.5
 
Response #6: I agree with Response #5 - in many instances insurance may specifically prohibit alcohol consumption at company-sponsored events, especially if they involve specific activities. At the companies I've been with we've typically limited alcohol to moderate consumption through use of policies and guidelines, e.g., entertainment and travel, Code of Conduct, event planning, and local Human Resources policies.
The social aspect on the entertainment side is something to watch, aside from your own employees socializing. In all my years at larger companies, we've never permitted consumption on the premises rather limit it to special occasions like tickets for drinks at holiday parties, etc.6
1Response from: Julie Pacaro, General Counsel, Leadnomics (8/10/2016)
2Response from: Anonymous (8/10/2016)
3Response from: Julie Pacaro, General Counsel, Leadnomics (8/11/2016)
4Response from: William Davis Harn, Senior Vice President & Senior Counsel, City National Bank (8/10/2016)
5Response from: Teresa Davidson, Vice President – Legal, General Counsel & Secretary, Volvo Financial Services (8/11/2016)
6Response from: Anonymous (8/12/2016)
Region: United States
The information in any resource collected in this virtual library should not be construed as legal advice or legal opinion on specific facts and should not be considered representative of the views of its authors, its sponsors, and/or ACC. These resources are not intended as a definitive statement on the subject addressed. Rather, they are intended to serve as a tool providing practical advice and references for the busy in-house practitioner and other readers.
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