December 22, 2025
A majority of companies host holiday parties for their employees each year. And each year, those parties can result in legal hangovers for HR teams. To help you avoid compliance issues, check out our tip sheet, Holiday Party Do’s and Don’ts for Employers, for ways to make your event fun and sidestep potential problems.
You may have employees who don’t drink or celebrate the holidays in general. Plus, nearly two-thirds of employees say they don’t look forward to the corporate shindig. Make sure your holiday party is welcoming to all types of revelers. And don’t forget about your remote employees.
About two-thirds of workers say they feel it’s an unwritten rule to make an appearance at a holiday party. Many also fear reprisals for failing to attend. Employers should alert managers and supervisors that showing up is an option for employees, and adverse action shouldn’t be taken against those who don’t attend.
More than half of company holiday parties involve alcohol, which can lead to inappropriate behavior. It’s a good idea to send out a memo and remind employees that the party, even if it’s held off-site, is an extension of the workplace. Supervisors should also help set the tone with appropriate behavior.
In general, the focus of any holiday party shouldn’t be on religion. However, some symbols of Christmas — Santa Claus and a tree, for example — are considered by the courts to be secular decorations. Still, you should be considerate of people’s backgrounds and forgo any overtly religious activities.
There’s an often-cited case from California in which a woman got home safe from an office holiday party. She then left her home and got into a drunk-driving crash. The company was held liable. Tip: Provide a discreet way for the company to reimburse workers who take a cab or Uber home.
Drinking and holiday parties often go hand in hand. Just don’t let it get out of hand. To curb excessive drinking and the actions that sometimes come along with it, a professional bartender trained not to overserve people can be helpful, or offer drink tickets. Free booze and no supervision over the bar is a bad idea.
No matter how many precautions you take, there could be issues that arise from any company event. Nearly 26 percent of people embarrass themselves in some way at an office party. Have procedures in place to address complaints and follow up in a timely manner.
The common theme here? Common sense. And that means not hanging mistletoe. For obvious reasons. Sexual harassment can become a big issue at holiday parties. Make your holiday party fun. Don’t invite trouble for your HR team.
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