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The holiday gift employers don't want—Mitigating risk during the holiday season

January 2026 employment law letter
Authors: 

Mackenzie E. Clark, Bodman PLC

The holiday season is generally a time for celebration. However, employers should be vigilant in their efforts to mitigate risks for employment claims. Below are some issues to keep in mind.

Make your list and check it twice

Audit employment records. Ensure personnel files, I-9s, and payroll records are complete and accurate. Michigan has specific requirements under the Bullard-Plawecki Employee Right to Know Act for what must be included or excluded in a personnel file.

Review wage and hour compliance. Year end is a great time to review exempt/nonexempt classifications and ensure each employee is properly classified. These classifications affect overtime requirements, and state-level salary thresholds may have increased.

Reduce risk at holiday parties. Holiday parties offer a great opportunity to connect with coworkers and colleagues. However, employers should consider the risks of providing or permitting consumption of alcohol. Event coordinators and vendors should ensure that intoxicated individuals are not served. If an employee is intoxicated, they should not be permitted to drive. An employer could potentially be subject to liability if it permits the overserving of an employee and there is an automobile accident.

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