Don’t Be a Grinch About Holiday Celebrations

Deck the halls with boughs of holly….well maybe not at work. While some employers embrace the holiday season, others may choose not to celebrate to avoid legal issues. However, celebrating the holidays can be a great way of fostering a positive culture or sense of community in the workplace. Here are some practical tips on how employers can grow their hearts this holiday season without upsetting all the Whos in WhoVille. 

Private Employers (for profit and not-for-profit):

1. Celebrate all Holidays and Customs: Be inclusive of all customs, holidays, and celebrations from a variety of religious and ethnic backgrounds.

2. Deck the Halls: If you’re going to hang decorations, make sure you invite decorations for all celebrations including but not limited to Christmas, Chanukah, Kawanzaa, etc. Workplaces can decorate with trees, lights, and wreaths. Even the Supreme Court has held such decorations are not religious. Avoid decorations that have a devout religious meaning. Remember, private employers must respect freedom of religion in the workplace too. Also, don’t forget to be mindful of employees with allergies; you don’t want to trigger an allergic reaction from your tree or find a squirrel lurking in it.

3. Silent Night: Private employers are not restricted from paying for a holiday party – the sky’s the limit – but avoid religious references. Keep it secular. 

4. Santa Baby: A holiday party can set the scene for an enjoyable evening or an allegation of sexual harassment. 

   1. Whether it is held during the work day or after work hours, employees should not be required to attend. 

   2. Be sure to remind attendees that workplace employee rules and policies apply at the party. (Ex. – No drugs or alcohol in the workplace unless you have an exception for holiday parties.)

   3. Remind managers to set a good example and continue to manage their employees at the party. 

   4. If you’re playing music, make sure it’s work appropriate.

5. Naughty or Nice? If you offer alcoholic beverages at the party, be alert and manage employees who should not drive, who may be a little too friendly with other employees, or who seems impaired. Consider inviting a plus one guest to reduce the likelihood of inappropriate behavior or someone driving intoxicated. Consider drink tickets, a drink limit, or offering Uber or Lyft rides for your employees. Don’t sponsor an after party because of the risks that come with it.

6. Holiday Bonus: Consider a membership to the Jelly of the Month Club – JUST Kidding! If you do, and if Clark W. Griswold works for you, the holiday may not be very relaxing. If you do give a bonus, make sure the bonus structure is equitable for all employees. ALSO, make sure it complies with the FLSA for your no-exempt employees and include it in the regular rate of pay calculation for determining overtime pay – unless, of course, it truly is an unexpected, discretionary bonus, both as to whether it would be paid and how much it would be, that is not “in keeping with our past tradition.“ For more detail on what is truly a discretionary bonus and what is not, read this former blog post, which is still accurate. Remember, cash bonuses are taxable for all employees.

7. Gift Certificates: If you decide to give a gift card instead of a bonus (it’s still cash!), remember these are still considered taxable income under IRS rules. Since it is discretionary (and it MUST be truly discretionary), it does not require recalculation of the “regular rate” for purposes of overtime.

8. Gifts: Managers may give employees small gifts but do not expect a gift in return. The general rule is that gifting goes down the chain and not up. Consider the gift of time – who wouldn’t want a few extra hours of PTO to get some holiday shopping done? 

9. Closing the Office and Time Off: If you’re going to close the office on a day that is not a national holiday (Dec. 25 or Jan. 1), make sure you properly pay your employees or you could be at risk of a lawsuit for unpaid wages. Most employers include these days as paid holidays, but if not, then some rules apply. Properly classified FLSA-exempt employees cannot have a deduction taken from their weekly salary just because the employer stopped operating for a day.  But non-exempt employees don’t have to be paid for “hours” not worked. Non-exempt employees who work on a holiday must accurately report any and all time worked and be paid for it.

Iowa Public Employers[1]

1. Celebrate all Holidays and Customs: Be inclusive of all customs, holidays, and celebrations from a variety of religious and ethnic backgrounds.

2. Deck the Halls: If you’re going to hang decorations, make sure you invite decorations for all celebrations including but not limited to Christmas, Chanukah, Kawanzaa, etc. Workplaces can decorate with trees, lights, and wreaths. Even the Supreme Court has held such decorations are not religious. Avoid decorations that have a devout religious meaning. Also, don’t forget to be mindful of employees with allergies; you don’t want to trigger an allergic reaction from your tree, right Clark?

3. Party Pooper: Public employers cannot pay for a holiday party. It is not an allowable use of public funds. Iowa Constitution Art. 3 § 31. Thus, if you hold a party, you are on your own, personally, for covering the cost of the party. Consider a pot luck or silent auction even, where employees donate gift baskets to be auctioned off for charity. 

4. Santa Baby: A holiday party can set the scene for an enjoyable evening or an allegation of sexual harassment. 

   1. If not held during work hours, they are not required to attend and should not feel pressured into attending. If the party is held during the work day, you will be paying your employee. 

   2. Be sure to remind attendees that workplace employee rules and policies apply at the party. (Ex. – No drugs or alcohol in the workplace.)

   3. Remind managers to set a good example and continue to manage their employees at the party. 

   4. If you’re playing music, make sure it’s work appropriate.

5. Naughty or Nice? Public employers cannot provide alcohol in the workplace. However, if a holiday party is held in another location outside of work hours, it is acceptable. If you offer alcoholic beverages at the party, be alert and manage employees who should not drive, who may be a little too friendly with other employees, or who seems impaired. Consider inviting a plus one guest to reduce the likelihood of inappropriate behavior or someone driving intoxicated.  Consider drink tickets, a drink limit or offering Uber or Lyft for your employees. Don’t sponsor an after party because of the risks that come with it.

6. Ixnay on the Holiday Bonusay: Public employers cannot pay holiday bonuses – it is not an allowable use of public funds. Iowa Constitution Art. 3 § 31. 

7. Gifts: If you’re a public employer you also need to be aware of the restrictions on gifts. Iowa Code § 68B.22. A public official, employee, or candidate cannot accept a gift from a restricted donor if it is over $3.00 in value. This would include an employee giving a gift to a supervisor.  

8. Closing the Office and Time Off: Public employers are closed for public holidays that are observed, including Christmas and New Year’s Day. Make sure employees are not working on observed holidays. This can be especially troublesome if you have employees that work remotely. Employees who work on the holiday must accurately report any and all time worked and be paid for it. 

Happy Holidays!