Holiday Season Tips for HR: Avoid These Common Mistakes

Sophia Patel
Published Sep 26, 2025


December brings joy, celebration, and a fair share of headaches for HR departments. 

Jonathan Segal, a partner at Duane Morris, shares insights on navigating this festive time without falling into compliance traps during a virtual event on November 21. 

Here are four major pitfalls HR should watch out for:
 

1. Mind Your Gifts


It's wise to remind everyone in the office not to exchange inappropriate gifts. Anything sexual, suggestive, or potentially offensive, including political gifts, can stir trouble. 

Remember, gifting alcohol or edibles needs careful handling too. If alcohol is a gift, advise employees not to consume it at work and to take it home immediately.
 

2. Overtime and Holiday Bonuses


Not all holiday bonuses must be included in overtime pay calculations, but there are strict rules. To exclude a bonus from overtime calculations under the Fair Labor Standards Act, the payment must be a genuine gift, not expected or demanded, and not based on hours worked or performance. 

Watch out, as state laws might have different requirements.
 

3. Keep Holiday Parties in Check


While canceling the holiday party is one way to avoid issues, many companies find these gatherings important for morale and team building. 

If you choose to have one, manage alcohol consumption carefully, vet music playlists for appropriateness, and ensure behavior stays professional. 

Discourage after-parties to avoid scenarios where the company could be held accountable for any mishaps.
 

4. Decorate with Everyone in Mind


Decorations can be a minefield. To avoid making anyone uncomfortable, consider including symbols from various holidays celebrated during this season. 

However, be tactful in the size and placement of decorations to avoid sending unintended messages. 

If employees decorate their spaces, apply the same standards to everyone but allow for some flexibility to accommodate special situations.

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By keeping these points in mind, HR can help ensure the holiday season is truly the most wonderful time of the year for everyone at the company.

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