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22
T H E P R I M E R U S P A R A D I G M
California's Hangover:
How Your Company Can Responsibly
Serve Alcohol at Social Events
Spring is approaching, the weather is
getting nicer, and it is a great time for
company outings and morale-building
events. However, California courts have
been expanding the employer's potential
liability when employers enter the social
realm, especially for incidents stemming
from alcohol consumption. Other states
may or may not follow California's
trend, however, the factors identified
in this article are certainly smart
preventive measures that may keep your
company from establishing your state's
precedence.
The Holiday Party
In 2012, the Del Mar Marriott hosted a
holiday party for its employees. Marriott
provided each employee two drink
tickets and taxi service home. A Marriott
manager, on his own cognition, smuggled
in additional alcohol. A Marriott
employee got intoxicated, utilized the
Marriott's free taxi service to get home,
but then drove to another destination.
In route, he was involved in an accident
that killed another driver.
Marriott seemingly did everything
right. It tried to manage its employees'
alcohol consumption by using drink
tickets. It stressed not to drink and
drive. It even provided free taxi
service home. How could Marriott be
responsible for the actions someone took
after he got home? How could Marriott
be responsible for a rogue manager's
actions?
Ultimately, the court found Marriot's
preventative measures an issue of fact;
the court held a jury should determine
if the precautions taken adequately
protected the individuals. It further
opined, when an employer provides
alcohol, to benefit its enterprise (team
building, camaraderie, morale, etc.),
then it should bear the burden of injuries
proximately caused by its employee's
excessive alcohol consumption. The
court also found an employer should
reasonably assume employees will find a
way to drink to intoxication: employees
can easily obtain more than their share of
drink tickets, purchase more drinks after
tickets are used, "smuggle in" alcohol,
etc. Employers cannot claim ignorance.
Time for Business to Drink
Lots of Water and Take Some
Tylenol to Recover from
this Hangover
Unfortunately for business owners,
courts have not provided guaranteed
steps needed to avoid liability, except
perhaps prohibition. This article
analyzes the cases filed through the past
two years. It evaluates arguments made
by the plaintiff's bar, analyzes moving
papers, and examines how courts have
viewed various company's precautions.
Admittedly, two years will not provide
meaningful case law and nothing in this
article is a silver bullet. But, employers
cannot wait for the perfect opinion
or legislature to act. Below are some
factors which have been argued could
minimize liability.
Factors to Consider in Event
Planning
Prohibition:
The safest route is also the
most draconian. Forbidding alcohol
also guarantees the lowest attendance
at an employee event. No one, besides
your attorney, is seriously suggesting
prohibiting alcohol at a company event.
Training:
In almost every case over
the past two years, a manager or
supervisor endorsed excessive
drinking that resulted in the
injury. Before your event, conduct
training with all your managers
and supervisors regarding the
company's policies and the company's
expectations. Managers and
supervisors need not be babysitters,
but they need to understand they set
the example. Document this training.
North America ­ United States
Robert Olson
is an employment attorney
representing California employers in establishing
preventative practices and representation
through civil litigation. He is an associate at Neil
Dymott and recipient of the 2015 Secretary of
Defense Freedom Award. He is also a Lieutenant
Commander in the Navy Reserves and just
returned from a tour in the Middle East.
Neil, Dymott, Frank, McFall, Trexler,
McCabe & Hudson APLC
1010 Second Avenue, Suite 2500
San Diego, California 92101
619.754.8462 Phone
619.238.1562 Fax
rolson@neildymott.com
neildymott.com
Robert Olson