Office parties and company-sponsored social functions can be great morale boosters. These events offer a perfect opportunity to celebrate companywide success and demonstrate your overall appreciation for your workers. However, there are some risks employers need to be mindful of when sponsoring these events, especially events in which alcohol is served.But, a concern for liability shouldn’t ruin your fun this summer. You can still host company barbeques, picnics, and parties without having to worry about workers’ compensation claims, sexual harassment complaints, or lawsuits; you just need to take some necessary precautions.

Before hosting your next company party, follow the guidelines outlined below:

1. Reiterate company policies. Employees should be aware of company policies on issues such as sexual harassment, personal appearance, and substance abuse. Distribute memos, hold staff meetings, and post these policies on bulletin boards before the event so these issues really hit home. Remind employees that these policies not only apply when they’re in the office, but when they attend company events as well.
2. Attendance. Employees should be encouraged to participate, but by no means required to. Many state workers’ compensation laws contain recreational activity exceptions, so that injuries incurred while participating in voluntary recreational programs, including athletic events, parties, and picnics are excluded, unless the event is required for employees.
3. Location. Parties held off company premises are recommended since the connection to the company is often lessened. It’s also best to hold the event during non-working hours to further reiterate that the affair is not work-related and that attendance is voluntary.
4. Alcohol. If you decide to serve alcohol at the event, make sure you take some necessary precautions. It may be best to limit the number of drinks each person is permitted to have (i.e., 2-3 drinks max) and stop serving alcohol at least one hour before the party ends. Another tip: have food readily available; this will allow for slower absorption of the alcohol.
5. Consider providing transportation. Anticipate the need for alternative transportation, such as a taxi or limousine service, and make special transportation arrangements in advance of the party. Encourage all employees to make use of the alternative transportation if they consume any alcohol.
6. Guests. Make it a family event and allow employees to bring their spouses and children. This alone may help to limit alcohol consumption. If there are specific limitations on the number of guests allowed make sure employees are aware.
7. Designate party “chaperones”. Depending on the size of the party, designate two or three individuals as party supervisors. Inform them of the types of behaviors to look out for, such as excessive alcohol consumption or sexual harassment as well as how to handle those kinds of situations appropriately. In addition, consider designating individuals that are CPR and first aid certified so that they can appropriately respond in case of an emergency.

For a fun, and most of all, safe summer party, be sure you take the appropriate precautions. Limiting alcohol consumption, communicating and emphasizing company-wide policies, holding events off company premises, and keeping attendance optional are just some of the simple ways you can protect the company from the potential risks that come with hosting office parties.