---
title: Company Holiday Party Liability Checklist
description: Plan your company holiday party with confidence. Get guidance on decorations, alcohol, conduct and workplace policies to protect your business.
image: https://blog.axcethr.com/hubfs/Christmas-Holiday-Workplace-Compliance-GUide-_1200-x-628-px_%20(1).webp
---

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Company Holiday Party Liability Checklist

5:48

# Company Holiday Party Rules Every Employer Should Know

 By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Dec 04, 2025](https://blog.axcethr.com/how-to-avoid-legal-liability-in-your-companys-holiday-stocking)   
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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.

### **Workplace Safety While Decorating**

Festive décor lifts spirits, but it also introduces safety considerations employers shouldn’t overlook. If employees help with setup—climbing ladders, hanging lights or moving furniture—those tasks may fall under workplace safety and even workers’ compensation rules.

#### To reduce risk:

- Use proper ladders and equipment
- Keep cords and décor out of walking paths
- Avoid overloading outlets
- Assign higher-risk decorating tasks to facilities staff whenever possible

Clear guidance prevents injuries and keeps holiday preparations safe in the weeks leading up to the *office Christmas party*.

[![holiday party pay](https://no-cache.hubspot.com/cta/default/2652187/6c722080-a294-405e-90ed-827c4aece9e9.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/6c722080-a294-405e-90ed-827c4aece9e9)

## 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.

### **Consider Varied Religious Observances**

As holiday accommodation requests increase, the EEOC has reminded employers to avoid relying on assumptions. Even employees who celebrate the same holiday may observe it differently, and those variations can impact scheduling.

A user-friendly way to navigate requests:

- **Ask clarifying questions** rather than assuming what the observance requires
- **Document the conversation** and proposed solutions
- **Explore alternatives** like shift swaps, brief schedule adjustments or modified duties
- **Apply the same steps for every employee** to avoid inconsistent treatment

A consistent, well-documented approach helps prevent claims of unfairness and supports a respectful, inclusive culture.

RELATED: [How to Handle Holiday Vacation Requests >>](https://blog.axcethr.com/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

#### **4. Photos, Videos and Online Conduct**

Holiday celebrations often end up online, and photos or videos from a *company holiday party* can create issues if not handled thoughtfully. Before the event, remind employees to:

- Avoid photographing coworkers without permission
- Refrain from posting images showing intoxication or inappropriate behavior
- Be mindful that online posts can be misinterpreted or shared widely

A simple pre-party reminder helps protect employees’ privacy and reinforces your expectations for professional conduct.

[![how to create fair weekend and holiday schedules](https://no-cache.hubspot.com/cta/default/2652187/356aed08-ac91-4e66-9c7e-70d0f2beb423.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/356aed08-ac91-4e66-9c7e-70d0f2beb423)

## 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 >>](https://blog.axcethr.com/tis-the-season-for-safe-holiday-lighting)

## 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

## **[![HR compliance services for small businesses from Axcet HR Solutions](https://no-cache.hubspot.com/cta/default/2652187/interactive-189255892628.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJiMzlntIF0yuAcgZVd5Kigl0ftCeEX4Ep29n%2BIpfBOSA9wco7bxWkTC3LMJOMt4v4rveTOf9jBNRuYTN%2B5vWZ9Ix85iH1Tu0Rzplm%2BRu0yYEHW02Kf7cA%2B%2BgkoKzVBZJtPY3tVz38fADrP2cB3YfP%2FQYjvO2iob%2BT%2FHCy%2BGTuxi8WEwLlglTjYiMw8GX5%2BBqnrRHewhFeklLdu5OhI9KMPIG7qZRfPUjeu5kITA8mLjldexu9rT1k06x6lDahp%2Bqjry92X1v0J41jxD%2FX6qfrPeQAnWQ%3D%3D&webInteractiveContentId=189255892628&portalId=2652187)**

## **Celebrate the Holidays Without the Legal Headaches**

The holiday season is a time for celebration, but without clear policies and proactive planning, festive activities can expose your business to legal risks.

From inclusive decorations to managing alcohol at company parties, every detail matters. Axcet HR Solutions helps small and mid-sized businesses navigate these challenges with expert [HR compliance support](https://www.axcethr.com/services/human-resources/hr-compliance-services/), ensuring your holiday celebrations are both joyful and legally sound.

🎄 [Partner with Axcet](https://www.axcethr.com/services/human-resources/hr-compliance-services/) to develop comprehensive holiday policies that protect your business and promote a positive workplace culture.

Happy Holidays from the Axcet HR Solutions team!

[![Follow Axcet HR Solutions on Facebook](https://no-cache.hubspot.com/cta/default/2652187/interactive-178216580776.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLKNJxOLPz6Dp9bR3Eug4t4v5ewOuG14lS5EwBM5EloYaUr1tHROImenMqo%2BRnR7IcOHwHuPqk2SVBRx8wVDR3q1zw%2BDtFKev8twk6QalNEpKR1GZ4aTTwKHcwjIX2R2%2F%2BZmM4XhjJVa0e9e5%2FJHpxdWNRvAAPALA1jkCe0cnoaaOtlS&webInteractiveContentId=178216580776&portalId=2652187)

[![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman)

Written by

#### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman)

Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years.

As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow.

With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges.

Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management.

Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR.

Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce.

 Published in: PEO Insider and Ingram's

Read more

<https://www.axcethr.com> <https://www.linkedin.com/in/jeanette-coleman-sphr-shrm-scp-a40a537/> [View all posts →](https://blog.axcethr.com/author/jeanette-coleman)

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  "articleBody" : "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. Workplace Safety While Decorating Festive décor lifts spirits, but it also introduces safety considerations employers shouldn’t overlook. If employees help with setup—climbing ladders, hanging lights or moving furniture—those tasks may fall under workplace safety and even workers’ compensation rules. To reduce risk: Use proper ladders and equipment Keep cords and décor out of walking paths Avoid overloading outlets Assign higher-risk decorating tasks to facilities staff whenever possible Clear guidance prevents injuries and keeps holiday preparations safe in the weeks leading up to the office Christmas party. 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. Consider Varied Religious Observances As holiday accommodation requests increase, the EEOC has reminded employers to avoid relying on assumptions. Even employees who celebrate the same holiday may observe it differently, and those variations can impact scheduling. A user-friendly way to navigate requests: Ask clarifying questions rather than assuming what the observance requires Document the conversation and proposed solutions Explore alternatives like shift swaps, brief schedule adjustments or modified duties Apply the same steps for every employee to avoid inconsistent treatment A consistent, well-documented approach helps prevent claims of unfairness and supports a respectful, inclusive culture. RELATED: How to Handle Holiday Vacation Requests &gt;&gt; 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 4. Photos, Videos and Online Conduct Holiday celebrations often end up online, and photos or videos from a company holiday party can create issues if not handled thoughtfully. Before the event, remind employees to: Avoid photographing coworkers without permission Refrain from posting images showing intoxication or inappropriate behavior Be mindful that online posts can be misinterpreted or shared widely A simple pre-party reminder helps protect employees’ privacy and reinforces your expectations for professional conduct. 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 &gt;&gt; 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 Celebrate the Holidays Without the Legal Headaches The holiday season is a time for celebration, but without clear policies and proactive planning, festive activities can expose your business to legal risks. From inclusive decorations to managing alcohol at company parties, every detail matters. Axcet HR Solutions helps small and mid-sized businesses navigate these challenges with expert HR compliance support, ensuring your holiday celebrations are both joyful and legally sound. 🎄 Partner with Axcet to develop comprehensive holiday policies that protect your business and promote a positive workplace culture. Happy Holidays from the Axcet HR Solutions team!",
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