Many companies host holiday parties to celebrate a successful year, boost employee morale, and thank employees for a job well done.
Suppose an employee is injured while attending a company holiday party. Can the employee receive workers’ compensation benefits such as medical benefits or compensation?
Alabama workers’ comp and the course of employment
An employee can pursue a workers’ compensation claim for injury arising out of his or her employment. This means the injury happened while the employee was performing their job duties or while engaged in an activity considered “in the course of employment.”
Let’s say your job requires climbing ladders. Falling off a ladder at work and injuring your back is considered an injury “in the line and scope of your employment.” In this clear-cut case, you would receive workers’ compensation benefits.
Injuries sustained while performing acts incidental to employment are compensable pursuant to the Alabama Workers’ Compensation Act, and performance thereof is deemed to have arisen out of the employment.
Company parties and workers’ comp: The “incidental to employment” test
Imagine you’re attending a company holiday party. You’re enjoying yourself, socializing with colleagues, and participating in the festivities. But then, an accident happens, and you’re injured. Does workers’ compensation apply in your situation?
The key question is: Does a company holiday party qualify as “performing the duties of employment” or an “act of employment”?
Alabama courts have offered some guidance.
The courts have found a company function to be a part of employment when the employer treats the party as a way of compensating employees or requires the employees to participate.
A claim is valid if the injury arose from an activity where the employee was:
- Reasonably fulfilling the duties of employment: This applies to job-related tasks performed at the party.
- Engaged in something incidental to employment: This covers activities that indirectly support your job duties.
Factors influencing workers’ comp eligibility for company party injuries
Whether a company party qualifies as “incidental to employment” depends on the specific circumstances surrounding the event.
- Optional vs. mandatory attendance: Generally, a non-mandatory company function wouldn’t be considered work-related for workers’ compensation purposes.
- Employer encouragement and incentives: However, courts consider the party work-related if the employer:
- Strongly encourages attendance, or even requires it.
- Uses the party as a form of employee compensation (e.g., giving out bonuses at the party).
Indicators of a work-related function
Here are some good signs your injury at a company party might be covered by workers’ compensation:
- Employer-compelled attendance: It strengthens your claim if your employer pressured you to attend the event.
- Rewards and incentives: If the party involves distributing awards, bonuses, or other motivators tied to your work performance, it increases the chance the event is considered work-related.
- Employer-subsidized event: If the company pays for a significant portion of the party, it suggests the event is part of your employment.
Company picnic may turn into compensation for an employee injured in route
Workers’ compensation benefits are available when an employee is injured on the job, but what happens when an employee is injured on the way to a company event after hours?
Alabama courts have given a broad definition as to what is an act incidental to employment. Once a company function is incidental to employment, any injuries sustained at this function may qualify you for workers’ compensation benefits.
Not sure if you’re eligible for Alabama workers’ compensation?
Our blog post provides a general overview of Alabama workers’ compensation and holiday party injuries. However, the specific details of your situation can be complex. If you’re unsure whether your injury qualifies for workers’ compensation benefits, schedule a free consultation with us today.