Holiday Parties Without the Legal Hangover

By Mark Wolf

The holiday season offers local governments an opportunity to thank employees and celebrate another year of public service. A successful celebration, however, requires more than choosing a venue and sending invitations.

Employer-sponsored holiday parties can raise concerns involving religious inclusion, harassment, public ethics, and wage-and-hour obligations. A little advance planning can help keep the focus on joyful appreciation rather than addressing disputes.

Plan an Inclusive Celebration

Title VII prohibits religious discrimination and requires covered employers to reasonably accommodate sincerely held religious beliefs or practices unless doing so would create an undue hardship. A holiday celebration should not put employees in the position of choosing between their beliefs and workplace expectations.

Consider a broadly welcoming seasonal theme and address accommodation requests promptly. It is wise to carefully consult a calendar to avoid creating conflicts between the workplace celebration and religious observances. If attendance is optional, make that clear and demonstrate respect for employees who choose not to attend.

Keep Workplace Standards in Place

Protections against harassment do not end at the office door. Employer-sponsored social events can create exposure to harassment claims, including when unwelcome conduct is severe or pervasive. An exceptionally serious single incident may be enough to create an unlawful hostile work environment.

Before the event, remind employees that professional conduct and anti-harassment policies still apply. Explain how to report concerns, and ensure managers are prepared to respond promptly. If alcohol is permitted, consider limiting availability, offering appealing nonalcoholic options, and encouraging safe transportation home.

Review Gifts and Public Ethics Rules

For Oregon local governments, House Bill 4161 (2026) clarified an important public ethics issue. ORS 244.040(2)(j) now provides that public officials may accept food or beverages provided by a public body during meetings or other official events held by the public body.

Gift exchanges require a separate review. Under ORS 244.025, a public official generally may not receive gifts totaling more than $50 in a calendar year from a single source that could reasonably be known to have a legislative or administrative interest. A subordinate employee may have an administrative interest in a supervisor’s hiring or promotional decisions. Supervisors, managers, and elected officials should be cognizant of this during any holiday gift exchange.

Keep any gift exchange voluntary and workplace appropriate. White elephant exchanges are not off-limits, but organizers should set clear expectations: no sexually explicit, discriminatory, or otherwise offensive gifts. (Yes, organizers need to expressly inform participants of the expectations.)

Clarify Attendance and Compensation

For nonexempt employees, treat required attendance as compensable time. Attendance outside regular hours may be unpaid when it is truly voluntary, the event is not directly job-related, and employees perform no productive work.

If participation is voluntary, say so and ensure managers do not imply that attendance will affect an employee’s standing or opportunities.

Coordinate With Volunteer Associations

Some police and fire departments have volunteer associations that sponsor holiday celebrations using member dues and donations. Often, alcohol is included.  If an association is hosting, consider a courteous reminder about professional conduct and reporting concerns. Do not assume that private sponsorship eliminates every workplace issue.

Celebrate With a Clear Plan

A welcoming theme, clear conduct expectations, thoughtful gift rules, and compliance with wage and hour laws can help local governments host a celebration that reflects appreciation for their employees. Resolve questions before the invitations go out so the holiday party leaves good memories—not a legal hangover.

This article provides general information, not legal advice for a specific situation. Consult legal counsel about your organization’s event and applicable requirements.