Every year employees are invited and sometimes even required (or strongly encouraged) to take part in an employer-sponsored event. They may receive an email or see flyers posted in the common areas providing information. These company-sponsored events may include a golf outing, a picnic, a party or a company sports team. Rarely does an employee think about the possibility of injury during one of these events. The question is whether the injury would be compensable under workers' compensation. The test for compensability of company-sponsored events requires two elements:
- Is the recreational or social activity a regular occurrence of employment?
- Does the recreational or social activity produce a benefit to the employer beyond improvement in employee health and morale?
Ordinarily, when an employee sustains an injury while participating in an employer-sponsored event such as playing on a softball team, the injury is not compensable as the activity is not considered a regular occurrence of employment and does not benefit the employer beyond morale.
However, is there ever a time that an injury occurring during an employer-sponsored event is compensable? Yes, compulsion will render any injury during an employer-sponsored event compensable. An example would include a company-sponsored picnic during business hours where attendance by all employees is mandatory. If an injury is sustained during the picnic, although recreational or social in nature, the required picnic is an activity that would be considered work-related.
It is important that employers understand the distinctions and consider whether an event should be mandatory.
For more information contact Cheryl Binosa at cbinosa@wglaw.com or 973.854.1062
Disclaimer: The contents of this post are for informational purposes only, are not legal advice and do not create and attorney-client relationship.