First, decide whether an outside professional group will plan the event or an internal group within the company.
An external group has advantages regarding reducing liability, but budget is a factor; for related liability guidance see Trust Company Insurance.
Areas of concern
- Is attendance mandatory or voluntary?
- Are family members or customers invited?
- Alcohol policy
- Transportation policy
- Conduct code — professional or casual?
- Events that could be construed as sexual harassment or creating a hostile environment
- Social media aftermath and posting
Mandatory attendance will generally be construed as work. The company may be subject to hourly wages, workers’ compensation claims, and other regulatory issues, so opt for voluntary attendance whenever practical.
Will employees’ families attend? Inclusion can boost morale, and families often self-govern behavior, but plan for disruptive guests and consider how to handle conflicts that involve family members or customers.
No-alcohol policies are common because alcohol increases liability and can change behavior. If alcohol is allowed, provide clear controls and limits so behavior remains work-appropriate.
Consider employees or guests with substance use issues and recognize that legalization of certain substances in some states complicates choices. From a liability viewpoint, drugs and alcohol are best restricted at company functions.
Arranging transportation for offsite activities can help safety but also raises workers’ compensation and liability exposure; review broader liability topics such as Construction, Environmental Testing & Liability Overview when planning.
All workplace rules, including policies on sexual harassment and bullying, apply during social events. Communicate expectations and consequences to employees before the event.
Posting reports and pictures from the outing can build morale, but screen social media content for anything embarrassing or inappropriate before wider distribution.
Decide what type of outing fits your company and create behavioral standards tailored to the event. Competitive sports or team-building activities may require firmer rules than a formal performance or dinner.
Properly setting and managing employee expectations will help the group relax and will make the company function more enjoyable; if you need help planning or reviewing coverage, talk to an agent.
Frequently Asked Questions
Is attendance at company social events considered work?
If attendance is mandatory, many jurisdictions treat the event as work time, which can trigger wage and workers’ compensation rules.
Can we serve alcohol at an employee event?
Alcohol is allowed in some situations but increases liability; many organizations ban alcohol or set strict limits and monitoring.
Should family members be invited to company outings?
Inviting families can boost morale but creates extra risk; set clear behavioral standards and a plan for handling disruptive guests.
How should we handle photos and social media after an event?
Screen photos before posting, remind attendees about privacy and appropriateness, and remove any content that could harm employees or the company.