Alcohol at Work: What HR Should Know

April is Alcohol Awareness Month so it’s a good time to talk about alcohol at work.

The fact is, alcoholism is a disease that can permeate every part of a person’s life, including their professional life. 

And an employee struggling with alcoholism can cause real, impactful ripple effects throughout an organization.

In fact, workplace alcoholism and alcohol abuse amount to lost productivity, healthcare costs, traffic accidents and personal tragedies totaling between $33 billion to $68 billion per year, per OPM.

Alcohol in the workplace

In recent years, many companies have gotten increasingly lax about alcohol in the workplace.

For example, from start-ups offering in-office bars to virtual happy hours during the pandemic, many companies use alcohol and social drinking as a team-building tool.

But how do employees feel about alcohol at work? One group, in particular, doesn’t appear to be very interested in the perk.

Gen Z has been labeled the “sober curious” generation, as they’re drinking less than their older colleagues. Why the shift? Nearly two-thirds of Gen Z participants said they were “concerned about the emotional impact” of drinking and said they’d like to learn more about “drinking mindfully.”

Both reasons align with Gen Z’s interest in mental health, as “a whopping 86% of Gen-Z consumers believe that their mental health is as significant as their physical health when considering drinking alcohol,” according to Forbes.

The question remains: Should alcohol be permitted at work? Let’s look at the pros and cons.

Pros of alcohol at work: Supporters highlight benefits

Are there any upsides to allowing employees to drink alcohol at work? Advocates at Office Libations believe social drinking is part of modern culture and say alcohol at work provides several benefits, like:

• Incentivizes employee performance. Office happy hours help employees foster connections. Light drinking in the workplace may help some employees feel appreciated and keep them committed to the company. Providing drinks in the office fridge can help alleviate workplace stress.
• Helps employees bond and connect. Having a beer or a glass of wine with co-workers at the office is a form of networking. When enjoyed in moderation, alcohol at work can help teams form new relationships and forge new bonds.
• Saves employees from tension meltdown. Drinking can help employees relax and provide a mood boost. As a result, a glass of wine or beer can help calm employees dealing with stressful workdays or nerve-wracking situations. A drink often helps employees decompress after a tough day.
• Improves employees’ creative problem-solving abilities. An experiment reported in Harvard Business Review showed that when 20 men drank enough vodka cranberry cocktails to push their blood alcohol levels close to the legal limit of 0.08, they solved word puzzles better and faster than a sober control group. Researchers concluded that people are better at creative problem-solving after a few drinks.
• Improves recruitment and retention. Having alcohol at work could be a unique perk that may help your company stand out to promising candidates. Similarly, the perk may help you hold on to top talent.

Cons of alcohol at work: Attorney weighs in

If you’re feeling skeptical, you’re not alone. Employment attorney Jon Hyman put it best: “The idea of an office open bar makes my compliance skin crawl.” He outlined several concerns regarding alcohol at work, including:

• Alcohol loosens inhibitions, which can lead to inappropriate conduct. A study conducted by Cornell University found that when the consumption of alcohol at work increases, so does the risk of harassment of women by male co-workers. And as you probably know, sexual harassment payouts can be expensive.
• Allowing employees to drink alcohol at work may exclude some workers, such as those with a history of addiction issues, those whose religious beliefs prohibit the use of alcohol or those who must abstain for other health issues. It also could lead to peer pressure situations or uncomfortable conversations about why someone isn’t drinking.
• It could compromise the sobriety of recovering alcoholics. Making alcohol readily available at work can make it extremely hard for those with an alcohol addiction to stay sober.
• Liability issues that come with alcohol use. Do the company’s insurance policies contain alcohol-related exclusions? How will employees get home after consuming alcohol at work? Will you have designated drivers or foot the bill for ride sharing? Who monitors consumption to ensure folks aren’t overindulging?

Workplace warning signs and next steps

How do you deal with employees suspected of drinking alcohol at work when they shouldn’t be? Or arriving at work with debilitating hangovers?

Addressing alcohol issues in the workplace can seem daunting. Falsely accusing an employee can lead to major trouble, so it’s important to balance the delicacy of the situation with prioritizing the health and safety of all employees. 

Common warning signs of alcohol abuse from employees include:

• Frequent absences or tardiness: Employees who are struggling with alcohol abuse may frequently miss work or show up late.
• Poor job performance: They may have decreased productivity, make mistakes and have difficulty concentrating.
• Changes in behavior: They may exhibit mood swings, become irritable or defensive or have difficulty controlling their emotions.
• Physical signs: They may have slurred speech, bloodshot eyes or an unsteady gait.

Noticing these warning signs is one thing, but many employers struggle with where to go from there.

“Coming from a place of empathy and care is more productive than a disciplinary type meeting,” advises William Stonehouse III, president and co-founder of Crawford Thomas Recruiting. It’s important to approach the situation carefully and with compassion instead of accusations. 

Depending on the situation and its severity, you may want to refer the affected employee to resources to find help and support, such as:

• Employee assistance programs (EAPs): If your company offers an EAP, you may want to refer the employee to counseling to get additional support.
• Referral to a healthcare provider: If the situation is more severe, the best thing HR can do is refer the employee out to a trained professional. Employers can encourage employees to seek help from a healthcare provider, such as a primary care physician or a mental health professional.
• Referral to a support group: Local support groups such as Alcoholics Anonymous or SMART Recovery can help employees find a like-minded community to get peer support.

Alcohol, the ADA and FMLA

It’s important for employers to be aware of their potential legal obligations under the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA).

Here’s what you need to know.

1. Is alcoholism a protected disability under the ADA?

The ADA may apply to people with alcoholism, but it does not require employers to excuse performance issues or misconduct – even if alcoholism causes those issues.

At the same time, the general ADA duty to accommodate applies in cases where alcoholism qualifies as a disability. That means you need to be ready to evaluate whether an effective accommodation can be made. For help, check out 5 tips for accommodating employees with alcohol use disorders.

2. Is alcoholism considered a serious health condition under the FMLA?

Substance abuse, including alcoholism, can qualify as a serious health condition under the FMLA if an eligible employee seeks treatment involving “inpatient care” or “continuing treatment” by a healthcare provider.

The FMLA provides limited leave protections to individuals who are seeking treatment for alcohol addiction. Specifically, FMLA leave may be taken for substance abuse treatment provided by a health care provider or by a provider of health care services upon referral by a health care provider.

However, absences due to an employee’s substance use do not qualify for FMLA leave, according to the DOL.