Nine Ladies Dancing… and the Holiday Party Risks HR Can’t Dance Around

“On the ninth day of HR’s favorite season, my lawyers said to me… nine ladies dancing—and a guide to hosting a compliant holiday party.”

Holiday party season is here—a chance to celebrate the year, boost morale, and get employees “dancing” (literally or figuratively). But for employers, it’s also a time when celebrations can create legal headaches: alcohol-related incidents, harassment complaints, wage-and-hour issues, and even workers’ compensation claims if things truly go off the rails.

Here’s how to host a festive, inclusive, and low-risk good time.

1. Set expectations before the music starts

A short, cheerful reminder email can go a long way. Reinforce key policies, such as:

• Anti-harassment and anti-discrimination expectations
• Professional conduct standards
• No tolerance for excessive intoxication or unsafe behavior

You can frame it positively: “Enjoy yourselves—and remember this is still a work-sponsored event.”

2. Choose your timeframe wisely

During-the-day events (e.g., lunch celebrations, early afternoon gatherings) generally reduce alcohol-related risks and increase inclusivity.
Evening events may lead to heavier drinking, higher costs, and more challenging transportation.

There’s no one right answer—just align timing with your culture and your risk tolerance.

3. If serving alcohol, be intentional

Alcohol is the most common source of party-related HR fallout. Consider:

• Limit open bars (e.g., tickets, capped time periods)
• Serve substantial food throughout the event
• Offer appealing non-alcoholic options
• Hire trained bartenders who can cut off overserved guests
• Provide transportation support, such as rideshares or vouchers

And remember: serving alcohol doesn’t excuse misconduct. If someone engages in inappropriate behavior, the employer may still be liable.

4. Watch for harassment risks (this is a big one)

Holiday parties often involve looser social boundaries, which unfortunately can lead to:

• Inappropriate comments or touching
• Unwanted advances
• Harassing behavior amplified by alcohol

Employers should ensure managers know how to intervene early—not after misconduct escalates. After the event, promptly follow up on any concerning reports. A holiday party isn’t a “policy-free zone.”

5. Think about inclusivity

Consider how to make the celebration welcoming for all, including:

• Employees who don’t drink
• Those who don’t celebrate certain holidays
• Caregivers with evening obligations
• Remote or hybrid team members

Even small adjustments—such as offering non-alcoholic activities, rotating traditions, or hosting a daytime option—can help everyone feel included.

6. Address wage-and-hour issues

If attendance is mandatory or strongly encouraged, non-exempt employees likely need to be paid for their time.
If the party is optional, you can typically avoid wage obligations—but make sure communications don’t blur that line (“we expect to see everyone there!”).

7. Have a post-party plan

Decide in advance who employees can contact with concerns.
Promptly address any reports of misconduct, including harassment or safety issues. Delayed action can create legal risk—and morale problems.

The Takeaway

With the right preparation, you can host a party that keeps the “ladies dancing” without inviting preventable liability. A little planning on the front end helps ensure the only things carried into Monday morning are good memories—not HR investigations.

If you’re reviewing your holiday event policies or want help drafting a pre-party guidance memo, contact Hannah or other members of Verrill’s Labor and Employment practice group.

Continue reading our series with Day 10 here.