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7 Tips to Mitigate the Risks of Summer Staff Parties

With millions of employees continuing to work remotely part- or full-time, 2022 summer office outings may represent one of the first “all hands” get-togethers for many employers since the COVID-19 pandemic began. Indeed, 37% of respondents to spot surveys conducted by Seyfarth at Work reported that there had not been a need, opportunity and/or COVID-safe venue for everyone to be in the same space at the same time since 2019.

Two years is a long wait, and based on anecdotal reporting in the wake of June and early July events, some employees are perhaps a bit overexcited at the prospect of finally hanging out together.

Some summer outing horror stories that resulted in complaints and charges include:

• An East Coast video game development company’s festivities included ice-breaker activities of beer pong and “spin the vodka bottle,” with managers nudging uncomfortable staff to join in.
Result: two employees contacted a local enforcement agency looking to file a harassment charge.

• A West Coast tech startup’s party featured an impromptu game of “pin the tail on the interns,” involving strips of paper “tails” and tape.
Result: two interns left the organizations and several employees threatened suit.

• A Midwest pack-and-ship firm had insult rap battles that devolved into comments about aging and weight gain.
Result: a spate of internal complaints from employees, and even from a caterer who was setting up food on-site and overheard the derisive and potentially discriminatory lyrics.

Actionable Risk Management Take-Aways for Bosses:

A number of pre-event precautions can help reduce the risk of your summer outing going sideways:

Scare your managers—just a little. Schedule pre-event “Respect Huddles” where you can remind those in supervisory roles that they all have potential professional and/or legal responsibility if things go wrong. Deputize them, so to speak, to watch out for risky conduct as the festivities unfold. Share simple scripts and responses your managers can use to “nudge” attendees back to a zone of respect.

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Set limits for everyone on things like alcohol, how long/late the event runs, and an agenda of (appropriately) fun activities. Historically, drinking can be a gateway activity to all sorts of sordid interactions. To manage the risk, some organizations have found it very helpful to “ticket the tequilas,” meaning they provide the event food, but limit the alcohol, such as by using a drink ticket system.
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A strict event agenda helps prevent attendees from straying into murky territory with creative comments and conduct. Any planned games should focus on friendly collaboration, not physical contact.

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Assign a trusted internal party planner to carefully manage your party or outing agenda.

Strongly encourage staff to bring significant others and kids, if interested. Having lots of little tykes in attendance tends to reduce all sorts of adult excesses and judgement errors. However, also be open to employee opt-outs. Stress the fact that no one is expected to attend—it is just as important as making sure everyone feels welcome.

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Send a pre-event conduct memo to every employee at least once, and maybe even twice. Revisit your office respect rules, as they extend to and apply in the great outdoors as well, at least when your organization is sponsoring.

Tips for Everyone

For employees at any level, we recommend not thinking of the outing as party time, but rather as a professional event that just happens to be moving outside. These tips can help any attendee enjoy the gathering while avoiding risky situations:

Set lower expectations for yourself on how “off-the-hook” the whole outing will be, which can help ensure that you’re not disappointed and are better able to maintain decorum.

Stay away from casual banter that is ribald, risqué or involves sharing too much information.

Social distance, for both COVID and conduct reasons.

Governments Tackle Workplace Bullying and Harassment

This week, South Korea enacted new legislation addressing “gapjil,” or bosses using their power to bully their employees. The measure criminalizes the practice of unfairly demoting or dismissing employees who have reported being subjected to bullying, imposing a three-year prison sentence or a 30 million won (approximately ,400) fine for the practice.

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Workplace harassment is common in the country, with two-thirds of workers experiencing harassment and 80% witnessing it, according to a recent government study.

South Korean advocacy groups like Gapjil 119, which operates a hotline for victims of abuse, have tried to fight against workplace abuses by cataloging and publicizing cases that range from employers forcing workers to pluck their grey hairs to serious violence and degradation. Several recent high-profile incidents have sparked a national debate over this conduct, including in late 2018, when videos emerged of Korea Future Technology CEO Yang Jin-ho and Marker Group CEO Song Myung-bin physically assaulting their staff members. Yang has been indicted, and Song is facing legal charges.

Experts say that South Korea’s culture of “chaebols,” or family-run conglomerates, has also enabled abuses because these companies lack external restraints on their executives’ behavior. Korean Air dynasty matriarch Lee Myung-hee was indicted in February for routinely physically and verbally abusing her staff, and Lee’s daughter, Heather Cho made headlines in December when she attacked two flight attendants for serving her macadamia nuts in a bag instead of a bowl, and demanded that the plane return to the gate. Cho was ordered to pay 20 million won (,000) to the flight attendants and served five months of a one-year prison sentence for violating aviation law.
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These and other incidents at the company even prompted a mass demonstration of Korean Air employees and the formation of an employee union.

Other countries are also attempting to address workplace bullying of this kind, similarly spurred by high-profile cases of abuse. This month in France, former France Télécom executives stood trial for overseeing an environment of workplace abuses that allegedly led to at least 35 employees committing suicide between 2008 and 2009. The company reportedly sought to downsize 22,000 workers, but could not fire them because they were state employees, so instead systematically harassed them to drive them out. Examples of this harassment included forcing employees to relocate multiple times away from their families or drastically changing their jobs. The case is awaiting judgment, but the company faces a possible fine of €75,000 (about $84,000) and the executives could serve a year in jail and have to pay additional fines themselves.

Additionally, Japan is attempting to address workplace “pawa hara” (or power harassment) as reports of workplace bullying and abuses have reached record numbers for multiple years in a row, according to the country’s Workplace Harassment Research Institute. The measures are partially in response to a government worker released an audio file of his boss, lawmaker Mayuko Toyota, insulting him and hitting him in the face and on the head. Toyota later resigned her post, and according to Kyodo News, was hospitalized for “her unstable mental condition.”

Japan’s parliament voted in May 2019 to revise five existing laws and require companies to put mechanisms in place to prevent workplace abuses. The revisions also protect pregnant women and women who have recently returned from pregnancy leave from discrimination.

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Similar to South Korea’s new law, Japan’s new law would bar employers from firing or discriminating against employees who report harassment, and require consultation when employees make reports of abuses. However, unlike South Korea’s law, these revisions do not outline any punitive measures for companies and their executives if they violate the requirements.

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The government reportedly decided against fully banning “pawa hara” because lawmakers had difficulty defining which actions qualified as harassment.

McDonald’s Sued for Sexual Harassment at Franchises

This week, 25 women in 20 cities across the United States brought sexual harassment charges and lawsuits against fast food giant McDonald’s with the U.S. Equal Employment Opportunity Commission (EEOC), alleging that the company has neglected its duty to protect employees from harassment. In fact, the women claim, the company has often punished those who have spoken out against abuses, including cutting their hours and revoking promotion or training opportunities.

These are hardly the first claims that female workers have brought against the restaurant chain. In the past 10 years, the EEOC has filed multiple lawsuits against McDonald’s for allegations related to sexual harassment and inappropriate behavior at franchises across the country. In May 2018, 10 women filed harassment complaints, including “alleged groping, propositions for sex, indecent exposure and lewd comments by supervisors,” according to the Associated Press. They too alleged that they faced negative consequences when they objected to these abuses. Workers also launched strikes to protest against sexual harassment and other inappropriate treatment in May 2015 in Chicago and September 2018 in 10 cities.

These lawsuits correspond with a planned strike on Thursday, May 23, to protest low wages and the company’s refusal to get involved with franchises’ pay decisions and negotiations, as well as workers’ ability to create a union. The wider protest movement Fight for 15 (named for their demand for a $15 minimum wage) has backed the sexual harassment claims and lawsuits, as have the National Women’s Law Center’s Time’s Up Legal Defense Fund, the ACLU, and several law firms.

Because it operates on a franchise basis, McDonald’s has said that it has no responsibility or liability for any abuses (or wage decisions) at individual locations—that it is not a “joint employer” with its franchises, and franchise employees are not direct McDonald’s employees. In April, the Trump administration announced that it would reverse Obama-era interpretations of what qualified as a joint employer, which had made chains more liable for labor violations at their franchises. The Trump administration change is still in the proposal stage, but could clarify who can be held responsible for sexual harassment and wage disputes, relying on four factors: who can hire/fire the employee, who has control over work schedules, who sets pay rates and who maintains employment records. This change could make chain companies significantly less responsible for conduct at their franchises.

McDonald’s has stated that it provides comprehensive policies and training to help franchises prevent sexual harassment. The company also said that it has brought in experts to help “evolve” those processes, and set up an anonymous hotline to report harassment. However, advocates say that without visible enforcement of its policies, these steps are not enough. Workers at low-paying jobs, including fast food, are uniquely vulnerable to harassment and other workplace abuses. One 2016 study found that 40% of female fast food workers had been sexually harassed in the workplace, and that this was “substantially higher than in workplaces overall.” Additionally, the study found that 42% of female fast food workers who were harassed in their workplace “feel forced to accept it because they can’t afford to lose their job,” 21% said they faced negative professional consequences after reporting the inappropriate behavior, and 45% said they experienced physical and mental health problems as a result of workplace harassment.

As Risk Management has covered before, no matter what the industry, companies and their HR departments have the obligation to keep their employees safe from workplace harassment, and should implement strict HR policies to address it. These policies should include clear reporting guidelines (not just to tell an immediate supervisor, who is often the person harassing the employee) and strong disciplinary measures, as well as mandatory and regular anti-harassment training. For risk management and HR professionals reviewing their existing policies, these tips can help ensure they foster a workplace culture in which reporting harassment is encouraged and illegal or inappropriate conduct is swiftly and effectively investigated and punished.

Legal Lessons from Starbucks’ Race Together Campaign

Starbucks Coffee Race Together Campaign

One aspect of Starbucks Coffee’s recent “Race Together” campaign encouraged employees to engage customers in a discussion about race. This effort—which had employees write #racetogether on customers’ cups to encourage dialogue—was well intentioned. However, the speed at which it was scrapped shows just how difficult it is to incorporate political and social discussions into the workplace.

The term “hostile work environment” often gets thrown around without any thought to what that really means. The greatest misconception is that anything hostile or abusive that happens at the workplace is illegal. Albeit inappropriate, screaming at an employee or calling him stupid is simply not illegal.

The flipside of that coin is that conduct does not necessarily have to be abusive or threatening to create a hostile environment when the subject matter is a protected category under Title VII, which prohibits discrimination by covered employers on the basis of race, color, religion, sex or national origin. Forcing employees to engage in discussions with strangers about race without any control over how the customer will respond opens an opportunity for the work environment to become incredibly uncomfortable for employees.

Employers have a duty to protect their employees from harassment based upon protected categories by customers, not just other employees. So if a customer responds to an offer to start a conversation about race with a mean-spirited joke or simply a racial epithet, the employer will have to take action against that customer. If these types of responses become repetitive, the employer would likely have an obligation to stop the source of the conflict—in other words, cease the practice of having employees start discussions about race.

There are many other pitfalls in having workplace discussions around sensitive topics that fall into protected categories under Title VII. A discussion of this sort, in spite of the best intentions of the participants to be thoughtful and candid, can easily bring to the surface differences in thought among employees, which may result in ill will. Likewise, comments made during these conversations could be used as evidence that a particular manager is prejudiced against certain types of individuals. Individuals certainly have different perceptions of the meanings of different comments and actions, so a manager might feel that comments he makes do not show any sort of prejudice, while the people hearing the conversation can come to a completely different conclusion. Should the manager then take some disciplinary or other job-related action against an employee, the conversation may be used as the basis for a discrimination lawsuit. At that point, what the speaker intended is less relevant than how the comment is perceived by a judge or jury.

Most employers today certainly haven’t taken steps to instigate this sort of discussion in the workplace. But events do arise in the news that relate to these topics and become the fodder for water cooler conversation. Most employers do not want to become the “speech police,” monitoring every communication among employees that might not relate directly to the business. Yet, these conversations can, just as the discussion on race that Starbucks initiated, become problematic. Then, the key is to make sure that employees are aware of their opportunities to report behavior that causes them discomfort. Open door and non-harassment policies attempt to encourage employees to come forward well before any workplace conduct would become a truly actionable illegal hostile environment. Encouraging use of this process can assist employers in nipping problems in the bud.

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Handling a complaint related to an uncomfortable discussion can have its own problems. Chances are that the employee being complained of did not understand that talking about what he saw on the news the night before should be grounds for his being called out. Many employees wrongly believe that the First Amendment protects the right to discuss these events at a private employer’s place of work.

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Thus, when having the conversation with the offending employee, the employer needs to be prepared to educate the employee on the differences of opinions and perceptions that different people have as well as the employer’s right to keep discussions out of the workplace.

While the conversation about the Starbucks “Race Together” campaign will likely die down, employers can continue to expect the occasional need to address misunderstandings and comments as long as the outside world is focused on these issues. In light of that, here are some steps employers can take to be prepared.

  • Train managers that they should not be engaging in conversations on non-work-related controversial topics with their employees.
  • Train employees and managers in the reporting procedures under open-door policies so they know how to raise a problem before it becomes a big issue.
  • Train employees that your nondiscrimination and harassment policy extends not just to their fellow employees, but also to customers and vendors.

Finally, and most importantly, be responsive when employees raise concerns. Not every complaint is a valid one and not every event that makes somebody uncomfortable is inappropriate. Sometimes an employee must be told that their complaint is not going to result in any changes. Failing to follow up with the complaining employee creates an atmosphere of distrust or leads to the belief that the employer does not mean what it says about preventing illegal harassment.

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