Navigating Holiday Season Hazards: Essential Insights from The Employment Law Counselor

The latest episode of The Employment Law Counselor podcast delivers a timely and insightful discussion on the unique legal challenges employers face during the holiday season and as the new year approaches. Hosts Victoria Fuller and Laura Corvo cover everything from holiday party risks to year-end bonuses, reductions in force, evolving leave laws, and the growing impact of AI in the workplace. Here are some key takeaways from their discussion.

Holiday Parties Require Careful Planning to Avoid Liability

This episode underscores that while holiday parties can boost morale, they also present significant legal risks for employers. The hosts open with a deep dive into these concerns, including wage and hour issues for non-exempt employees, the importance of clear communication to avoid implicit pressure to attend, and the dangers of alcohol-related incidents. They recommend monitoring alcohol consumption, offering non-alcoholic options, and ensuring safe transportation to reduce liability. Inclusivity is also emphasized, from party themes to menu choices, to avoid religious discrimination. Furthermore, this episode highlights severe consequences of failing to address harassment and inappropriate behavior, reinforcing the need for careful planning to minimize potential claims.

Bonus Policies and Legal Traps

Year-end bonuses are a holiday tradition, but they come with their own set of legal considerations. Corvo and Fuller remind employers that most bonuses are considered wages and must be reported for tax purposes. Clear communication is critical: unless a bonus is part of a guaranteed compensation structure, it should be explicitly described as discretionary to avoid wage claims. Employers are also cautioned to apply bonus policies consistently and document the rationale for any differences in awards to prevent discrimination claims.

Preparing for Reductions in Force and Leave Law Changes

As economic conditions shift, more employers are considering reductions in force (RIFs) and reorganizations. This episode stresses the importance of consulting legal counsel early and often, especially for multi-state employers facing a patchwork of regulations. The hosts also discuss new and updated state leave laws taking effect in 2026, urging employers to review and update their handbooks and policies to ensure compliance. Carryover obligations and “use it or lose it” rules are highlighted as common pitfalls that can lead to liability if mishandled.

The Evolving Landscape: AI, Discrimination, and Insurance

Looking ahead to 2026, the episode explores the rapid adoption of AI in the workplace and the legal uncertainties it brings. Employers are advised to develop or update AI policies and to review insurance coverage for AI-related risks, as insurers are beginning to add exclusions and new terms. The hosts also predict a continued rise in both traditional and reverse discrimination claims, especially following layoffs and RIFs. Leave and accommodation issues remain complex and costly, making robust EPLI coverage more important than ever.

Importance to Professional Liability Practitioners

This episode is a must-listen for professional liability practitioners, as it provides a comprehensive overview of the emerging risks and best practices facing employers at year-end and beyond. From real-world litigation examples to practical compliance tips, the discussion equips practitioners with the knowledge to advise clients proactively and mitigate exposure. Staying ahead of these issues is crucial for protecting both organizations and their leadership in an increasingly complex legal environment.

Interested in learning more about this topic? Listen to the full episode here.

Meet the Speakers

Laura Corvo serves as Counsel at White and Williams. She represents employers in employment litigation and counsels clients on a variety of employment-related issues. She has extensive knowledge of federal, state and local employment laws and regularly counsels employers on a host of personnel and human resource issues including, employee hiring, discipline and termination matters, reductions in force, wage and hour compliance, family and medical leave compliance, and managing accommodations for disabled employees. Laura frequently conducts harassment and discrimination investigations and provides training to executives, managers and employees on a range of topics including anti-harassment, anti-discrimination and diversity. She also drafts and reviews employment contracts, employee handbooks and other personnel policies. Laura represents employers in litigation involving claims of discrimination, harassment and retaliation in federal and state courts and before various administrative agencies. She is also experienced in the litigation of business tort matters involving non-compete and other restrictive covenant agreements.

Victoria Fuller is a Partner and Co-Chair of the Labor and Employment Practice Group. She practices out of White and Williams’ Boston office. Victoria has over 17 years of experience as a civil litigator, focusing on employment litigation and counseling, higher education litigation, insurance coverage and bad faith litigation. Victoria is well-known for her creativity, commitment, efficiency and strategic focus with clients. Victoria regularly represents businesses, educational institutions, and non-profits in employment litigation pending in the EEOC, MCAD, as well as in Massachusetts state and Federal Court. In addition, she counsels employers with respect to a variety of employment matters including hiring, termination (including RIFs), requests for accommodation, policies and procedures, and restrictive covenants. In addition to employment matters, Victoria also defends educational institutions in legal disputes with students. Victoria also represents insurers in complex coverage and bad faith disputes and handles first party property coverage matters.