Image of Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping & Legal Compliance, and Health, Safety & Security

Compensating Employees for the Company Holiday Party

Last Updated
in

Last Updated on August 16, 2023 / HR Compliance

Question:

Our company is having a company holiday party, so do we need to pay our employees to attend?

Answer:

It’s that time of year when companies are planning holiday parties as a way to build morale and celebrate the past year with their employees.  In regards to compensation for attending the company holiday party, the obligation to pay employees for attendance at a holiday party applies only to nonexempt employees.  Exempt employees do not need to be paid extra for time spent attending.  The big thing to consider is whether or not attendance is required.  If attendance at the event is strictly voluntary, and you clearly explain this up front with all employees (including non-exempt) then you are not required to pay employees to attend.  Holiday parties scheduled during the regular work day will always be compensated.  Conversely, no compensation is owed for holiday-party attendance that is 100% voluntary and strictly for the benefit of employees.

One other point to remember is that while attendance at a holiday party may be 100% voluntary for most employees, those who are working the event — even if the work is voluntary — must be paid.

In conclusion, when planning your holiday party, remember the following:

  • Make attendance at the holiday party entirely voluntary and clearly convey that message to employees.
  • Consider scheduling the party during regular working hours when nonexempt employees are paid anyway.
  • To the extent attendance is required, publish the hours of the party and enforce them.
  • Neither ask nor permit nonexempt employees to prepare for and/or work at the party outside regular work hours.
  • Remember there are various legal considerations. For example, serving alcohol, especially if provided without limitation, can lead to employee DUIs and tort claims, as well as reduced inhibitions that might lead to harassment claims.

 

We understand, there are just too many new Labor Laws to keep up with. Not only are there laws that govern hiring practices, safety concerns and recordkeeping requirements, then there are the compensation and benefit laws. Let Strategic HR help you navigate the employment law minefield. Ask us for assistance with any of your Legal Compliance needs. Please visit our Legal Compliance page for more information or call us if you have a specific question or need.

You might also like
HR Wheel for Recruitment Services from Strategic HR Business Advisors.What To Do If a Background Check Results in a Rejection of Hire
Image of Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping & Legal Compliance, and Health, Safety & SecurityHow Can HR Impact the Bottom Line?
Image of the Wheel of HR featuring Legal Compliance and Recordkeeping Services from Strategic HR Business AdvisorsMedicare Part D Creditable Coverage Disclosure – Which Companies Must Comply?
HR Wheel for Recruitment Services from Strategic HR Business Advisors.What Should I Use To Measure Recruitment Performance?
HR Wheel for Recruitment Services from Strategic HR Business Advisors.Are Social Media Background Checks Legal?
Image of our Wheel of HR Services, with a focus on Employee Relations.Attendance Point System Policy
Image of Strategic HR's wheel of HR Services, including HR Strategy, Recruitment, Training & Development, Benefits & Compensation, Communications, Employee Relations, Recordkeeping & Legal Compliance, and Health, Safety & SecurityWhat Does In Loco Parentis Mean In Regards to an FMLA Claim?
Image of Strategic HR Wheel of Services highlighting CommunicationsWriting a Winning Employee Newsletter