Social Host Liability in the Employment Context

EP Update - December 19, 2003

With office Christmas parties fast approaching, it is important for employers to understand how they can be held responsible for the actions of their employees who drive while impaired after leaving the office party.

In recent case law, the courts have held that an employer owes a duty of care to its employees when it serves alcohol, and that this duty of care may extend beyond the workplace. Courts have found that where an employer supplies alcohol to its employees, it owes the same duty owed by commercial drinking establishments to take "positive steps" to prevent employees from driving while impaired. If an employer fails to take these steps, and an employee is involved in an accident due to impairment, the employer may be held partially liable for any damages suffered as a result of the accident.

In this regard, where alcohol is served at an employer's Christmas party, or otherwise, it is important for the employer to be diligent. If employees are observed and appear to be intoxicated, the employer should arrange for alternate transportation.