Editor's Note: This article is part of a series of articles that will be taking a look at challenging situations that may be facing your workforce. Lynne Eisaguirre began the series by tackling How to Deal with Problem Employees Within the Limits of the Law. She also wrote about Dealing with Rumors in the Workplace Before it Becomes Defamation and Basic Employment Law Principles When Dealing with Workplace Violence.

Most workplaces have policies against alcohol and drugs at work and you have every right to enforce those, as you should. You move into gray areas when employees have drinks after work or when someone appears to be under the influence of alcohol or drugs on the job.

After work Drinking
Many workplaces have social situations that encourage drinking. Silicon Valley companies host Friday afternoon beer busts. Law firms may have bars or sherry sipping. At a construction site, the boss and his workers may hit the local bar or even hang around the lot drinking after hours. Sales departments may be expected to wine and dine clients.

Many employers think that this drinking benefits the bottom line by encouraging informal networking. The problem is that you can create legal liability. If the company provides free drinks and drunken employees hurt themselves, they can claim workers' compensation. Because the drinks were free, the courts have found that the employees did not voluntarily become intoxicated.

On the other hand, if a company party is completely voluntary and the employer charges for drinks, the company isn't liable for workers' compensation when employees hurt themselves.