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That's Not Funny, That's Actionable

Inc.,  August, 2007  by Max Chafkin

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I f organized fun offers a rare escape from memos, policy, and legalese, it can also occasion such drudgery. Yes, even in an era of sensitivity training and dry Christmas parties, actionable happens. "The biggest problems occur at functions held by smaller companies," says Bruce Alper, chair of the employment law practice at the Chicago-based firm Vedder Price. "You close a big deal, everyone goes out together, and people start flirting."

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Legal risks stemming from fun come in three broad categories: workers' compensation, negligence, and sexual harassment. Workers' comp claims--for instance, Bill breaks his tibia at a company rock-climbing excursion--are capped by law and are generally covered by insurance. Injuries involving negligence are not. If ...