I was reading an article in the Insurance Journal over the weekend and the article was about what happens when fun ‘n games at work take a bad turn.  The article was in reference to a lawsuit where an employee sued their employer because they were injured during a company picnic while participating in one of he activities. 

The employee and her partner had already won the hula-hoop contest and balloon toss.  The last event for them to win was the 3-legged sack race to clinch first place and the $50 prize.  Unfortunately the employee fell during the sack race and injured her shoulder. 

The employee thought that her injury should have been covered by workers compensation insurance, but coverage was denied because they deemed the activity voluntary.  The employer sponsored the picnic, approved the activities and had an award for 1st place, but did not force anyone to participate. 

This case hinged on whether the court felt that the activities were voluntary or if people were being forced to participate. 

There is a great opportunity for team-building when employees participate on employer sponsored teams and in company activities.  It’s an opportunity to get to know your colleagues outside of work and possibly showcase some talent that you might have outside of the workplace.  As an employer the important thing to remember is to keep the activities voluntary.  If someone is injured while participating on one of your employer sponsored teams or in one of your employer sponsored events, your workers compensation insurance is going to determine whether the activity was voluntary or not to determine if a payment should be made. 

Larson’s Worker’s Compensation Law is often used as a general guide to determine if recreational and social activities are within the course of employment and should be covered under workers’ compensation.  The “Larson Test” considers the following when an injury occurs:

• Did the injury occur on the premises during a lunch or recreational period (I’ve seen a number of warehouses that have basketball hoops for the employees to use on their breaks)
• Did the employer expressly or impliedly require participation (join the volleyball team or you’re fired!)
• Is the activity considered a requirement of your employment?  (i.e. all employees are required to volunteer for habitat for humanity)
• Does the employer derive substantial direct benefit from the activity beyond the intangible value of improvement in employee health and morale. 

As an employer it is great to sponsor sports teams and have company picnics with games to foster team building, but the important thing to remember is to keep participation voluntary.