With casual drinks in the office becoming increasingly prevalent, the keg has become the new water cooler.

More and more companies are blurring the lines between work and social lives, offering employees alcohol in the workplace, although usually at the end of a work day.

While the perk can help lure top talent and connect different departments around the office, some employment lawyers worry that drinking in the office can cause a slew of problems.

Encouraging alcohol consumption in the office, for example, has the possibility to lead to intoxicated driving or sexual harassment.

If you are an American employer, it’s important to understand that many states have laws that reflect the “social host” liability, which makes alcohol servers responsible for injuries and damages caused by intoxicated people.

As well, employers in the U.S. should consider the ‘exclusive remedy’ provision of the Workers’ Disability Compensation Act. Normally, this act protects employers when an employee is injured in a work-related incident. However, this protection does not typically apply in company party situations, and such injuries would not be covered by workers’ compensation.

While it may seem extreme to conclude that a few casual beers breeds an environment of illegal activity, research also indicates that it can make some employees uncomfortable, such as those who do not drink for health or religious reasons. As a result, a company initiative meant to make employees feel more connected could actually end up leaving some feeling excluded.

Nancy Rothbard, a Wharton professor who studies workplace socializing, says that encouraging drinking in the office can increase employee engagement and connectedness among like groups of employees, such as young, white males, but tends to make those who are racially dissimilar feel excluded.

So, is bringing alcohol into the workplace too risky altogether? Not at all.

There are many ways you can minimize your company’s exposure to liability and make happy hour happy for every employee.

1)    Include an alcohol use policy in your company’s employee handbook – Clearly state that when alcohol is served at company sponsored events, employees are expected to drink responsibly, not to drink and drive, etc.

2)    Make attendance voluntary – generally speaking, a company will be considered more liable if employee attendance is considered mandatory.

3)    Give options – Offer pop, juice, or other beverages for those who choose not to consume alcohol. This will help to make everyone feel included.

4)    Serve snacks – Tasty, and they soak up alcohol.

5)    Limit excess – Give a stipulated time for the happy hour to start and finish and avoid buying too much alcohol for the event.

6) Remind people about expectations - Communicate early on and often. Use internal communications, emails, or bulletin notices to remind employees about the company’s alcohol and sexual harassment policies.

Is your organization missing important pieces in its Policy Manual? Could the lack of clarity regarding alcohol consumption and sexual harassment put you in a costly legal situation? Check out our FREE Policy Manual cheat sheet and ensure all your bases are covered!