When you think of gambling, you probably picture a roulette wheel or a poker table—games that are...
When you imagine gambling, you likely picture a roulette wheel or a poker table—activities that are generally prohibited in the workplace. However, gambling can take many forms. You might not allow a poker table in the break room, but what about permitting fantasy football leagues or organizing NCAA brackets? Activities like these, seemingly harmless, can expose you to significant legal risks.
Workplace Gambling Legal Concerns
Advocates of fantasy football argue that it fosters camaraderie among coworkers. Yet, office leagues requiring an entry fee might violate federal and state gambling laws. Some states offer exemptions for "social gambling," but often impose limits on the monetary rewards. If your employees participate from different states, this could introduce additional legal complications.
Historically, some states have pursued legal actions against fantasy sports companies like DraftKings and FanDuel, making it crucial to stay updated on legislative changes and respond appropriately. At a minimum, ensure you are familiar with federal and state regulations.
Additional Costs of Workplace Gambling
Beyond legal concerns, workplace gambling can negatively impact your business in other ways. If certain employees are excluded from activities like March Madness bracketing, they might feel alienated. This can create a hostile work environment and expose you to potential discrimination or harassment claims.
Employer Action Steps
Expecting all employees to cease all forms of gambling is unrealistic, especially if it's a long-standing tradition and serves as a morale booster. Nonetheless, having a clear workplace policy is essential. Define what is permissible regarding gambling in the workplace, including any monetary limits as per state and federal laws, and outline the consequences for policy violations.
You have the authority to prohibit gambling in the workplace even if the state legally permits it. Establish your workplace standards, which might include banning certain activities. If you are worried about unauthorized gambling, consider implementing an anonymous reporting system for employees to notify you discreetly.
Whatever your decision, ensure your policy is enforced uniformly across the organization.
For more guidance on workplace policies, consult TPG Payroll & HR Services. Call 909.466.7876 today!
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