With the Fourth of July’s fireworks still ringing in our ears and Memorial Day not too far off in the distance, many companies are busy planning their annual summer employee picnics.
One question that frequently comes up regarding corporate-sponsored events such as company cookouts, holiday parties, and other business-related celebrations is whether or not alcohol should be served.
Some companies shun alcohol consumption for moral reasons. Their owners may have strong religious beliefs that prohibit the consumption of alcohol or that they simply don’t approve of drinking.
Others are more liberal with the booze, rolling in the beer trucks and letting the suds flow extravagantly.
Risk vs Reward
So which approach is the best? Like most things in business, it boils down to a risk/reward analysis.
The law regarding serving alcohol is clear: If you pay for somebody’s drink, you can be held liable for what they do afterward.
There are countless legal cases in which companies have been sued because their employees drank at a company-sponsored event then were involved in a car crash in which they or somebody else was injured or killed.
Even if the event is held somewhere off-site — such as a banquet hall or a bar where the outside management is technically responsible for monitoring the guests’ alcohol consumption — employers are not safe. The rule of thumb among personal injury attorneys is that if somebody is hurt or killed in an alcohol-related accident, everybody from top to bottom will be named in the subsequent lawsuit. The courts can sort out who has to pay what.
Benefits of Serving Alcohol
On the other hand, allowing workers to socialize, fraternize and blow off some steam together while enjoying a few beers can help build comradery and reinforce positive feelings toward the company.
So employers need to measure the risk that they could be held responsible should something happen against the potential reward that allowing workers to have a good time on the company’s tab will improve morale.
‘Bring Your Own Bottle’?
One possible solution is to host “BYOB” events in which employees who choose to drink must provide their own alcohol. While there potentially could still be some liability to the company should an accident occur, it may be less than if the company were to pay for and provide the alcohol altogether.
Another option is to host “family-friendly” events in which no alcohol is served.
The money that would otherwise go towards beverages can then be applied to more entertainment, such as live music, bounce houses, or renting out an amusement park. You still get the benefit of building good feelings among your employees without the risk that they are going to do something stupid while drinking.
‘Laissez-Faire’ Approach
In today’s litigious society, many businesses are opting for a more “hands off” approach when it comes to serving alcohol at company-sponsored events. They are opting not to take risks, even when it comes at the cost of possible resentment among workers.
Still, attitudes are changing. Drunk driving has become more of a “hot button” issue. And even line-level workers understand that if their company has to pay out a huge legal settlement, eventually that will mean less available funds for benefits and payroll.
While in the past many workers might expect their employers to tap a few beer barrels at the company picnic, today there’s a growing understanding of the risks involved, both for the employees and the employers.