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Not So Merry… or Bright: How Corporate Holiday Parties May Lead to Employment Law Violations

A recent press release from the U.S. Equal Employment Opportunity Commission is the latest practical example of a company holiday party gone wrong. While holiday parties should be – and often are – times of warm camaraderie among coworkers, misconduct that violates one or more employment laws erected to protect employees taints too many of these events. Whether your situation involves unpaid work, sexual harassment, or religious discrimination, the laws of New York City and New York State (as well as federal law) may provide a basis for taking civil action and recovering compensation. If you have questions or concerns about your employer’s holiday party, get reliable answers and advice by talking to an experienced New York employment lawyer.

One of the most common problems at corporate holiday parties is sexual harassment/sexual assault. Many of these parties include the provision of alcohol. Too frequently, this leads to lowered inhibitions, which leads to misconduct.

Employers are legally obligated to take reasonable steps to prevent sexual harassment at work. That includes some events outside the office, like company holiday parties.

A few days ago, the EEOC settled a long-running sexual assault case arising from a wireless company’s holiday party. The case involved a 19-year-old female sales clerk and her male store manager, who attended the employer’s holiday party in November 2017. “Everyone was drinking,” according to the EEOC. After the party ended, the manager invited employees to his hotel room, where allegedly “everyone continued drinking.” Once all the employees except the 19-year-old left the room, the manager sexually assaulted her, according to the complaint.

The settlement required the employer to pay almost $108,000 and “implement various EEO measures, including trainings and policies to ensure its compliance with Title VII.”

Religious Discrimination

Sexual harassment/assault is not the only way a corporate holiday party can lead to violations of employment law. One area that employers may overlook is religious discrimination. While many employers have worked to become more inclusive, a few unavoidable realities about holiday parties remain true. One, Christmas is a nearly universally celebrated secular holiday that is the central event driving employers to have parties at or near the end of the calendar year. Two, Christmas is also a major religious holiday tied to the Christian religion. Three, in late November and December, many venues are decorated with various Christmas-themed decorations, some of which may be religious.

One way your employer can run afoul of the law is to make the event mandatory and refuse your request to skip the party for religious reasons.

In 2020, a Manhattan pediatric medicine practice paid out $68,000 to settle a religious discrimination claim launched by the EEOC. The employee was a member of the Jehovah’s Witness religion. Her religious beliefs prohibited her from drinking, dancing, or attending a party with holiday-oriented decorations. As one of the party planners, the employee discovered that the event would involve drinking, dancing, and Christmas-themed decorations. She asked to be excused from the event due to her religion. The employer refused to accommodate the request and punished the woman by firing her.

This misconduct implicated two possible violations. First, the employer had a duty to reasonably accommodate its employees’ religious beliefs and practices, which it arguably breached by denying the Jehovah’s Witness woman’s request to skip the party. Second, asking for a reasonable accommodation based on one’s religion is a “protected activity,” and punishing a worker for engaging in a protected activity can constitute illegal retaliation.

Unpaid Hours

Last but not least, if your employer made its holiday party mandatory but did not pay you for it, your employer may have violated wage-and-hour laws. Generally, the law requires employers to pay workers overtime compensation of 1.5 times the workers’ regular rate for hours they work over 40 in a week. The law, however, carves out several exemptions. If none of the exemptions apply to you, you are a “non-exempt employee.”

Say, for example, you are a non-exempt employee, and your employer made its after-hours holiday party mandatory or otherwise made it known that you could face punishment (such as negative performance review scores) for not attending. If the employer does not pay you for your time at the party, you may have a claim for unpaid hours.

Hopefully, if your employer holds a holiday party, it will be a time of only fond memories. If, however, it is marred by sexual harassment, discrimination, or other violations of the law, do not hesitate to take action. The knowledgeable and dedicated New York sexual harassment attorneys at Phillips & Associates are here to help, providing clear and valuable advice and the finest in effective advocacy. Contact us online or at (833) 529-3476 to set up a free and confidential consultation.