Blog Post: When Cocktails Mean Trouble: Are You Liable For What Happens At Your Office Party?

In Colorado, an employer is usually not liable for an intoxicated employee's actions, even if the tipsy employee imbibed on the employer's dime, at (or after) a company party.  At common law (the body of law that exists in cases decided by decades of judges, rather than in statutes), Colorado courts have held that it was the drinking of liquor that was the cause of the injuries, not the provision of liquor to "ordinary able-bodied persons."

Colorado statute codifies this general rule, and clarifies that employers are probably "social hosts."  C.R.S. § 12-47-801.  However, if they are found to be "licensees," a legal distinction, they may be found liable for serving visibly intoxicated adults.  Under Colorado statute, a social host is only liable if that host serves a minor or provides a minor with a place to drink.

What does this mean to you, and your party?  Well, it means that you must exercise common sense.  Please do not view this statute as an excuse to sit back and ignore the actions of your employees.  Instruct employees to have a great time, within reason.  If your employees are drunk, cut them off.  If you are not in control of how much they drink, direct your bartenders not to serve anyone who appears intoxicated.  Provide sober rides for your employees.  Give free cab passes to those who cannot walk home.  Consider the benefits of a cash bar, as opposed to an open bar. 

These common sense admonitions can feel a bit paternalistic, and they may be.  But a few precautions, however costly in the short term, may keep your employees safe, and save your company costly litigation expenses in the long term.

Laura J. Hazen is a Director at Ireland Stapleton Pryor & Pascoe, P.C.  In her employment practice, Laura provides day-to-day advice and coaching to public and private companies on various employment matters.  She also has an active litigation practice where she concentrates on representing business in all aspects of complex business and employment disputes.

Notice:  Ireland Stapleton Pryor and Pascoe, P.C. is pleased to provide you with this information.  This information is provided for your general reference, and is not intended to be, and should not be relied upon as legal advice, or as a substitute for the advice of qualified legal counsel.  As legal advice must be tailored to the specific circumstances of each case, nothing provided herein should be used as a substitute for advice of competent counsel.  This information is not intended to create any legal relationship between our firm or any attorney and the user.