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4 not-so-nice holiday compliance pitfalls for HR to avoid
- Employers should make clear that employees must avoid gifts to politicians that could create a conflict of interest without prior approval from a general counsel or chief compliance officer.
- The Fair Labor Standards Act does provide exceptions for sums paid as gifts, which do not need to be included in an employee’s regular pay rate for overtime calculation purposes.
- HR should monitor things to ensure employees behave responsibly, especially where alcohol is involved.
- Employers can include explicit language that attendance at after-parties is not required and that anyone who feels pressured to attend should let the employer know.
- The goal, Segal said, is for employers to use decorations that are as reflective of each holiday as reasonably possible.
- Employers might want to circulate a reminder to employees not to give anything sexual, suggestive or that violates an organizations’ harassment policies.
- Segal said he strongly advises employers to make clear that they will not sponsor, fund, nor attend any after-parties.
- Bonuses calculated based on categories such as production or efficiency are therefore not excludable.
- Employers can place restrictions but should ensure that the same standard applies regardless of the religion that the employee is celebrating.
- Employers could go further by setting a limit on consumption for all attendees, i.e. by a certain number of drinks per guest enforced by a hand stamp or other topics.
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