It’s the Most Wonderful Time of the Year – for Social Host Alcohol Liability

So what could the holiday season possibly have to do with North Carolina employment law?  Unfortunately, quite a lot.  Potential employer liability issues abound with year-end parties, where employees are encouraged to participate in festivities free of the usual work place rules, constraints, and inhibitions.  Add to the relaxed environment a free flow of alcohol, and the risk of liability arising from various employee indiscretions increases exponentially.  Much has been written, for example, about the potential for sexual harassment claims to arise from such circumstances.

Another issue that employers and individuals frequently overlook is the potential for social host liability for alcohol related motor vehicle accidents.  Like many jurisdictions, North Carolina law allows persons injured by drunk drivers to sue host providers of alcohol in certain situations.  Under North Carolina’s dram shop statute, for example, a person or entity who furnishes alcohol to a minor can be sued by victims of motor vehicle accidents later caused by the underage or intoxicated driver.  North Carolina statute also prohibits the sale or giving of alcohol to a noticeably intoxicated person.  North Carolina case law also recognizes negligence based theories under which persons can be assessed with tort liability for injuries causes by a drunk driver.

With these principles in mind, consider the typical holiday party.  Often held at a management member’s home, a standard staple is a bar, where courtesy alcoholic beverages are served.  Employees are frequently invited to bring guests, which opens the possibility for underage dates, siblings, student interns, and other guests.  What would normally be considered inappropriate activity is frequently accepted.  Indeed, many people view boisterous activity as directly related to the success of the party.  Conduct that would otherwise be deemed unprofessional and unacceptable is typically expected and, to some extent, welcomed as employees are encouraged to “blow off steam” and build camaraderie.  All too often, guests are served alcohol beyond the point of inebriation and permitted to drive home.

What are some good strategies for minimizing the risk in this area?  Consider the following:

• Hire a professional bartender, one who is trained to notice signs of intoxication.
• In addition to beverages, serve food, which slows the absorption of alcohol and, hopefully, reduces the amount of alcohol consumed.
• Offer soft drinks as well as alcohol.  With surprising frequency, holiday parties overlook soft drinks and/or make them less available to attendees.  Offer a variety of soft drinks so that guests do not feel pressured into drinking alcohol.
• Have one or more designated drivers available.  Instruct these persons to monitor the crowd for potential problems and to take the initiative in offering rides to suspect individuals.
• Before the party, make it known that employees are expected to behave responsibly during the party.

These same principles apply to private parties hosted by individuals.   

Finally, if you have questions about social host liability, or if you are confronting legal issues as a result of an alcohol related accident, be sure to consult attorneys experienced in this important aspect of North Carolina law.