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MOUNTAIN VIEW, Calif., Dec. 17, 2001 - 'Tis the season to be jolly, and for many businesses that includes throwing a holiday party to show appreciation to hard-working employees. While a holiday bash can be entertaining and fun, a dose of holiday foresight and caution can help ensure the festivities are both fun and safe.

Providing transportation or designated drivers for party-goers, limiting the number of drinks or the length of time when alcohol is served, and providing plenty of non-alcoholic alternatives may make the party not only safer, but also more convenient for those attending. In addition to creating a safe and sound event, employers should also be aware that there are potential problems with liability that should be addressed.

"The number one potential problem that businesses face with holiday parties is potential liability under liquor laws or what are also called dram shop laws," said Lou Lehr, a lawyer with Arnstein & Lehr in Chicago, who specializes in premises liability. "In some states, these laws are very strict. If a person is served alcoholic drinks at a company party on the premises and then injures himself or herself, or someone else, in an accident, the company could be held liability if the drinks contributed to their intoxication."

Lehr says businesses should be aware of the laws in their area, and take a few precautions. The legal information web site FindLaw (www.findlaw.com) offers the following suggestions for businesses considering throwing a holiday party:

Check the laws in your jurisdiction

Applicable liquor laws can vary greatly by state. Check to see under which conditions a business could be held liable, and what liabilities may apply.

Look into obtaining insurance coverage

See if you can purchase dram shop insurance or liquor law liability insurance to cover the event.

Check the insurance coverage of anyone hired for the party

If you hire caterers, servers, bartenders or anyone else to provide and serve drinks, check to see if they carry liability insurance that would cover any potential liability exposure for your business from the event.

Hold the party in a licensed establishment

Have the celebration at a restaurant, bar, or other establishment whose liquor law liability insurance would cover the event.

Consider whether a holiday party is an appropriate fit

Is a holiday party the best match for your business and its employees? Consider an alternative event such as a live theater night out for the gang.

Check with an attorney

Check with corporate counsel or an attorney who specializes in liability. Internet legal directories such as FindLaw (www.findlaw.com) can help find appropriate counsel in your area.

About FindLaw

FindLaw Inc. (http://findlaw.com) is the highest-trafficked legal Web site, providing the most comprehensive legal resources on the Internet for lawyers, businesses and individuals. For businesses and the public, FindLaw provides comprehensive, plain-English legal information, and the Internet's largest lawyer directory. For lawyers and legal professionals, FindLaw offers the most complete information, resources and services for careers and practices, including free case law, an online legal career center, breaking legal news, marketing and client development tools, newsletters, message boards, service directories, continuing legal education and legal search tools.