April is Alcohol Awareness Month — a timely reminder for HR teams to assess the role alcohol plays in workplace culture and operations. While the occasional happy hour or toast at a company celebration might seem harmless, the presence of alcohol in the workplace brings challenges and serious risks that demand thoughtful consideration.
Alcohol-related issues cost U.S. businesses up to $68 billion annually through lost productivity, healthcare expenses, and legal consequences. Beyond the financial impact, there are real concerns around safety, inclusion, and company liability. From after-hours events to virtual mixers, alcohol has become a normalized part of workplace socializing — but that doesn’t mean it’s always appropriate.
Employee attitudes are shifting, particularly among Gen Z workers, who are drinking less and prioritizing mental health. Many are “sober curious,” pushing companies to be more mindful of how inclusive alcohol-fueled environments really are. While alcohol may help some employees relax or bond, it can also contribute to harassment, alienate non-drinkers, and jeopardize the sobriety of those in recovery.
The legal risks can’t be ignored either. Alcohol lowers inhibitions and can lead to inappropriate behavior. Employment attorney Jon Hyman warns that workplace drinking raises compliance red flags, particularly around harassment and discrimination. Employers may also face liability for incidents involving intoxicated employees — from accidents to misconduct.
HR can mitigate these risks with a clear and comprehensive alcohol policy. Outline when and where drinking is allowed, establish behavioral expectations at events, and include consequences for violations. Importantly, ensure inclusivity by offering non-alcoholic options and avoiding pressure to drink.
When alcohol misuse surfaces in the workplace, HR should take a compassionate, legal-minded approach. Document concerns, consult policies, and involve legal or management teams as needed. Resources like EAPs, healthcare referrals, or peer support groups can help employees struggling with alcohol use.
Lastly, understand your obligations under the ADA and FMLA. While alcoholism may qualify as a disability, employers are not required to tolerate performance issues caused by substance use. However, employees in treatment may be eligible for certain accommodations or medical leave.
As company culture evolves, now is the perfect time to rethink your approach. It’s not about banning alcohol — it’s about managing it responsibly and fostering a workplace that supports both safety and well-being.
If you need a sample policy please contact Linda Olejniczak.
Source: HR Morning 4.17.25