In the Spirit of the Law - What an Employer Risks When Employees Drink At Functions
January 3, 2008
Robert S. Murphy, Jr., Esq.
It's a call that any business owner would dread. Last night your employees enjoyed the evening at a business-sponsored event. Food was provided and alcohol was available on a "bring your own" basis. On the way home, one of your employees was involved in a two-car intersectional accident. You are relieved to learn that no injuries resulted but you can't help but think: What if?
In legal terms, the "what if" in the scenario above is called employer-host liability. An employer-host is judged under the same legal standard as a social host. Since 1986, Massachusetts law has imposed liability on social hosts in certain limited circumstances.
A social host is one who serves or makes available alcohol to a guest. An employer-host is an employer who serves or makes available alcohol to an employee. A person making a claim under the theory of employer or social host liability must first demonstrate that the host knew or should have known that the guest was intoxicated; second, that the host gave or permitted the guest/employee to continue to drink alcohol; and, finally, that because of his intoxication, the guest/employee acted in a negligent manner and injured a third party. If these elements are met, the injured third party may successfully bring a claim against an employer or social host. Massachusetts law does not extend employer or social host liability so far as to allow the drunken guest/employee to make a claim for injuries. Recovery is limited to foreseeable third parties.
As the courts have wrestled with the concept of social or employer-host liability, they focus on whether the host controlled and, therefore, could regulate the supply of alcohol at the function. ...
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December 10, 2007
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