Last month, we discussed how to properly pay employees during the holidays. This month, we’ll look at practical issues that arise around holiday parties and snow days.

Are we exposing our organization to legal liability by serving alcohol at holiday parties?

Generally, if the party is organized properly, the answer is no. Colorado’s “dram shop” law, C.R.S. § 44-3-801, states that a social host is not legally liable for the actions of a guest served alcohol unless the guest is a minor. Most employers hold holiday parties at restaurants or venues with trained staff to monitor over-consumption, transferring responsibility to professionals. Under Colorado’s dram law, alcohol vendors—not social hosts—are liable if they knowingly and willfully serve alcohol to visibly intoxicated individuals.

However, no employer wants to risk an incident. If your organization hosts a party where alcohol is available, consider these tips to discourage over-consumption:

• Avoid an open bar. Opt for a cash bar or provide a limited number of drink tickets.
• Limit drinks to wine and beer rather than hard liquor, and ensure a selection of non-alcoholic drinks.
• Stop serving alcohol at least one hour before the party ends, and serve coffee, desserts, and plenty of water or non-alcoholic beverages during this time.
• Arrange safe transportation home by offering free rideshare services or enlisting designated drivers.

What should employers do on “snow days”?

The answer depends on whether the organization is closed and if the employee is classified as non-exempt or exempt under the Fair Labor Standards Act (FLSA).

For non-exempt employees, the FLSA only requires pay for hours worked. Some employers provide paid leave when the office is closed, but it’s not mandatory. If the office is open and employees can’t make it in, employers can let them use accrued paid time off.

For exempt employees, the situation is more nuanced. If the office is closed, employers must pay exempt employees for the day, even for closures due to weather or power outages. If an exempt employee chooses to stay home due to weather, they must still be paid for the day if they perform any work. However, the employer can require them to use paid time off for hours not worked, as in normal circumstances when an exempt employee takes time off.

If the office remains open and an exempt employee chooses not to work or work from home, employers aren’t required to pay them for that day. The FLSA allows pay deductions for full days not worked for personal reasons (unrelated to sickness or injury).

Remote work and snow days

With the rise of remote work, snow days may affect fewer employees. Remote employees can typically continue working, and many who normally commute are now equipped to work from home. However, if the office is closed and remote employees run out of work due to the closure, employers are still obligated to pay them for the full day. This is because the lack of work results from the employer’s needs, not the employee’s choice.

Prepare now to enjoy a safe holiday season. Employers Council offers resources for members on these and other seasonal employment topics, and members with consulting or enterprise-level services can reach out to our HR professionals and employment attorneys anytime.