The holiday season can bring excitement to the workplace, but it can also introduce unique challenges from an HR compliance standpoint. Holiday parties, gift exchanges, decorations, and time-off requests can create opportunities for connection but also pose potential risks. HR professionals must strike a balance between celebrating the season and maintaining compliance with company policies and labor laws.

The following are some compliance challenges that HR may face during the holiday season. Addressing these issues long in advance of the holiday season and ensuring that HR’s policies include plans for addressing these challenges can go a long way toward a smooth holiday season. For each of these challenges, we’ve included some Do’s and Don’ts to help you manage this year’s holiday season and in years to come.

Harassment and Inclusivity Concerns

The holiday season can unintentionally alienate employees or create opportunities for inappropriate behavior. Non-inclusive celebrations, such as exclusively focusing on Christmas, may marginalize employees of different religious or cultural backgrounds. Additionally, holiday parties can sometimes lead to unprofessional behavior, including harassment or discrimination, particularly when alcohol is involved.

Do: Foster Inclusive Celebrations

Plan events that acknowledge a range of holidays, such as Christmas, Hanukkah, and Kwanzaa, or choose neutral themes like a “Year-End Celebration” to ensure inclusivity.

Do: Reinforce Anti-Harassment Policies

Provide employees with a refresher on harassment policies before holiday events. This sets clear expectations for respectful behavior and creates a safer environment for everyone.

Don’t: Plan Exclusively Religious Themes

Avoid events or activities that overly emphasize one religion, as this can alienate employees of different beliefs and violate inclusivity principles.

Don’t: Impose Participation

Participation in holiday events or activities should always be optional. Forcing employees to attend parties, gift exchanges, or other celebrations may create discomfort or violate personal beliefs.

Holiday Pay and Overtime Compliance

Mismanaging holiday pay is a common compliance issue. Employers must ensure they follow federal and state labor laws, especially regarding overtime for non-exempt employees who work on holidays. Make sure to communicate clearly about paid holidays and schedules to avoid confusion.

Do: Communicate Holiday Pay Policies Clearly

Provide employees with detailed information about holiday pay, overtime rules, and schedules. This transparency helps prevent confusion or disputes.

Do: Ensure Compliance With Labor Laws

Review federal and state labor laws to ensure your holiday pay practices align with regulations, especially for non-exempt employees working on holidays.

Don’t: Assume Employees Know the Rules

Do not rely on employees to understand company policies regarding holiday pay. Miscommunication can lead to complaints or compliance violations.

Don’t: Overlook Overtime Requirements

Ensure employees who work extra hours during the holidays are compensated correctly. Ignoring these rules can result in legal and financial penalties.

Time-Off Requests and Scheduling Conflicts

The holiday season often brings a surge in time-off requests, leading to potential scheduling conflicts or claims of favoritism. HR must handle these fairly, following company policies and ensuring business operations are not disrupted.

Do: Create Transparent Time-Off Policies

Implement a fair, first-come, first-served approach to holiday time-off requests, and communicate the process to employees well in advance.

Do: Encourage Early Submissions

Ask employees to submit their time-off requests early to avoid last-minute conflicts and ensure proper staffing coverage.

Don’t: Handle Requests Inconsistently

Avoid approving or denying requests arbitrarily, as this can lead to accusations of favoritism and lower morale. Your holiday time-off approvals and scheduling should be fair to all employees.

Don’t: Neglect Business Needs

While accommodating time-off requests, ensure the business remains adequately staffed to prevent operational disruptions.

Gift Exchange and Ethical Boundaries

While gift exchanges can be fun, they can also create ethical concerns or discomfort among employees. For example, extravagant or inappropriate gifts might violate company policies or create perceived favoritism. Additionally, gift-giving should apply to everyone who wants to participate rather than include only certain people.

Do: Set Guidelines for Gift Exchanges

Establish clear rules for workplace gift exchanges, including spending limits and appropriate categories, to keep the activity professional and enjoyable.

Do: Make Participation Voluntary

Allow employees to opt out of gift exchanges without pressure or judgment, ensuring everyone feels comfortable.

Don’t: Allow Inappropriate Gifts

Prohibit gifts that could be offensive or violate workplace policies, such as overly personal or suggestive items.

Don’t: Encourage Extravagant Spending

Avoid setting high expectations for gift exchanges that might create financial stress or perceptions of favoritism among employees.

Decorations and Religious Sensitivities

Festive decorations can unintentionally offend employees if they favor one religion or exclude others. Over-the-top displays might also create safety hazards, such as blocked exits or fire risks.

Do: Encourage Neutral Themes

Promote inclusive decorations with non-religious or winter-themed items that represent a variety of traditions, ensuring all employees feel included.

Do: Follow Safety Guidelines

Ensure that all decorations comply with safety standards, such as avoiding blocked exits, overloaded electrical outlets, or fire hazards.

Don’t: Use Decorations To Promote Personal Beliefs

Avoid allowing employees to use holiday decorations as a platform for expressing personal religious or political views. This can create discomfort or tension among colleagues with differing perspectives.

Don’t: Overdecorate Shared Workspaces

Steer clear of excessive decorations in communal areas, like break rooms or meeting spaces, that could feel overwhelming or distract from the professional atmosphere of the workplace.

Off-Site Holiday Events

Off-site events can be a great way to celebrate the holidays, boost employee morale, and foster team bonding in a new setting. However, these events come with unique considerations that HR professionals must address to make sure that the event is compliant with company policies and reduce any possibly liability.

Do: Choose an Inclusive and Professional Venue

Select a location that reflects the company’s values and is welcoming to all employees. Venues like restaurants, event spaces, or community centers provide a neutral and professional setting that encourages inclusivity.

Do: Communicate Logistics Clearly

Provide employees with detailed information about the event, including the venue address, start and end times, transportation options, and dress code. Clear communication helps employees plan their attendance without added stress.

Don’t: Overlook Venue Policies

Before finalizing the location, make sure that the venue complies with safety regulations and aligns with company expectations for professionalism. Check for policies on alcohol service, accessibility, and capacity limits to avoid issues during the event.

Don’t: Assume All Employees Can Easily Attend

Consider employees’ transportation needs and make sure that the venue is accessible to everyone, including those who rely on public transportation or have mobility challenges. Failure to plan for accessibility can exclude some team members and create unnecessary barriers to participation.

Alcohol-Related Risks at Events

Alcohol at holiday parties can lead to risky behavior, including impaired decision-making or harassment. Employers may face liability if incidents occur at work-sponsored events.

Do: Limit Alcohol Consumption

Consider offering drink tickets or hiring professional bartenders who can monitor alcohol intake. This helps maintain a safe and professional atmosphere.

Do: Provide Non-Alcoholic Options and Transportation

Ensure a variety of non-alcoholic beverages are available, and arrange for ride-shares or reimbursements for employees who consume alcohol.

Don’t: Ignore Liability Risks

Recognize that employers can be held liable for incidents involving alcohol at company-sponsored events. Take precautions to mitigate these risks.

Don’t: Allow Employees To Drive Intoxicated

Prohibit employees from driving home after consuming alcohol at company events. Provide alternative transportation to ensure their safety.

Although the holiday season may be a fun time for everyone else, it’s essential for HR professionals to remain vigilant and responsible to avoid compliance issues or liability. By planning thoughtfully, communicating clearly, and addressing potential risks, HR can ensure that the holidays are an inclusive experience and joyful time for all employees.