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The holiday season is a time for joy, celebration and cheer—but for small businesses, it’s also a time to be mindful of workplace policies and legal considerations.
To keep the season merry and bright (and free of legal headaches), here’s a comprehensive checklist to ensure your holiday activities stay compliant and fun for everyone.
1. Decking the Halls: Holiday Decorations
Creating a festive atmosphere in your workplace can lift spirits and bring a sense of warmth to the season. However, holiday decorations need to be handled carefully to remain inclusive and avoid legal missteps.
What’s Allowed?
According to the U.S. Supreme Court and the Equal Employment Opportunity Commission (EEOC), certain decorations are considered secular symbols.
These include:
- Wreaths
- Decorated trees
- Candy canes, tinsel and reindeer
- Winter scenes and strings of lights
These symbols are generally safe to display in the workplace, even if some employees object.
What to Avoid
-
Religious Favoritism
Avoid decorations that favor one religious belief over others. If you limit decorations, ensure the policy is applied uniformly.
-
Inappropriate Symbols
Skip mistletoe. It may seem harmless but can lead to discomfort or even misinterpretation as condoning inappropriate behavior.
2. Respecting Religious Accommodations
Under Title VII of the Civil Rights Act, employers are required to reasonably accommodate an employee’s religious observances, provided it doesn’t cause undue hardship to the business.
Common Religious Accommodations
- Allowing time off (paid or unpaid) for religious observances or holiday services
- Permitting workplace prayer or other religious expressions
- Broadening dress code or grooming policies for religious attire
How to Respond
If you deny a religious accommodation, you must demonstrate that it creates a significant burden, such as:
- Increased administrative costs
- Decreased productivity
- Safety concerns
- Infringement on other employees’ rights
Most requests during the holidays—like shift changes or vacation days—are reasonable and easy to grant. Being flexible goes a long way in fostering goodwill.
RELATED: How to Handle Holiday Vacation Requests >>
3. Navigating Gift Exchanges
Holiday gift exchanges can be a fun tradition, but they come with important boundaries.
Guidelines for Workplace Gift Exchanges
- Make participation voluntary to avoid pressure or discomfort
- Remind employees to keep gifts appropriate and free from offensive content
- Gifts or cards with sexually explicit, discriminatory or inappropriate themes can violate Title VII and your company’s harassment policies
4. Hosting the Holiday Party
Company holiday parties are a great way to celebrate, but without clear guidelines, they can lead to unwanted legal consequences. Use these tips to keep the event festive and compliant:
Party Policies to Follow
1. Keep it Inclusive
- Avoid religious overtones by calling it a Holiday Party or Year-End Celebration
- Play non-religious music and decorate with secular symbols
2. Make Attendance Optional
- Clearly state that attendance is voluntary. Mandatory attendance could mean paying nonexempt employees for their time.
3. Address Inappropriate Behavior
- Remind employees that company policies (including harassment and conduct rules) still apply
- Reinforce a zero-tolerance stance for inappropriate behavior, including:
- Sexual harassment
- Discrimination
- Excessive drunkenness
5. Managing Alcohol at Holiday Parties
Serving alcohol at company events requires careful planning to reduce risks.
If You Choose to Serve Alcohol
1. Limit Consumption
- Offer drink tickets or a cash bar
- Close the bar at least an hour before the party ends
- Hire professional bartenders to monitor alcohol consumption
2. Add Safeguards
- Serve food and non-alcoholic beverages
- Arrange designated drivers, Uber credits or rideshare options to ensure everyone gets home safely
- Offer incentives for employees who volunteer as designated drivers
3. Assign Sober Monitors
- Designate managers to stay sober and watch for excessive drinking or inappropriate behavior
- Discourage any “after parties” involving company leadership
4. Check Your Insurance
- Consult with your insurance carrier to confirm your liability coverage for the party
- Ensure you’re aware of any alcohol exclusions in your policy
Pro Tip
Consider holding a weekday, daytime event where alcohol expectations are lower, and employees are less likely to overindulge.
RELATED: Christmas Light Safety - Tips You Need This Holiday Season >>
6. Taking Action If Things Go Wrong
Despite your best efforts, incidents can happen. Whether it’s inappropriate behavior, excessive drinking, or harassment, you must respond swiftly and consistently:
- Investigate and address incidents promptly
- Enforce company policies and take appropriate disciplinary action
- Document everything to protect your business from further liability
Final Thoughts
The holidays should be a time of joy and celebration for your team—not a source of stress or legal challenges. By taking a proactive approach and following this checklist, you can create a festive, inclusive and compliant workplace where everyone feels comfortable and respected.
Need help ensuring your holiday policies are in line with employment laws? Axcet HR Solutions is here to help.
As Kansas City’s local certified PEO, we specialize in a full suite of PEO services, including HR, payroll, employee benefits, compliance and risk management, so you can focus on celebrating the season with peace of mind.
Happy Holidays from the Axcet HR Solutions team!
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