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Insurance

March Madness in the Workplace: Morale Builder or Legal Landmine?

College basketball championship season means millions of people will be glued to their computer screens, smartphones and TVs watching the action in the NCAA basketball tournament, better known as March Madness. Cheering for local teams, national favorites and alma maters brings out many fans.

Trying to pick the winners of the tournament games has been a long-standing tradition in many workplaces throughout the United States. As bracket mania spreads throughout the workplace, you should be wary of lost productivity and potential risks.

Workplace bonding or slacking?

While March Madness can be an opportunity for colleagues to connect, it can also impact productivity. Employees may divert work time to completing and monitoring their tournament brackets.

Outplacement firm Challenger, Gray & Christmas tracks the workplace costs of March Madness annually. Last year, the firm estimated the 2024 tournament cost employers nearly $10 billion in lost productivity (though it noted that broadcasting the games at work could be an excellent way to encourage employees to come in to the office).

Gambling-related risks to watch out for

Illegal gambling

While it’s unlikely that enforcement authorities would crack down on a small office pool, it’s important to remember that gambling at the office is almost certainly illegal. Individuals or companies that run or sponsor pools should be aware of this risk, particularly those hosting large, interstate or online contests.

If you decide to host an office pool, you may want to keep the dollar amounts low or play for non-cash items like candy bars or company swag.

Hostile work environments and discrimination

Irrespective of state or federal gambling laws, office pools can create discrimination risks if unwilling or uncomfortable employees feel pressured to participate. Even if the risk falls short of an actual lawsuit, you don’t want to foster an environment where employees feel excluded from activities and their coworkers.

Solicitation

Allowing employees to encourage and request participation in office pools is a type of solicitation. If you don’t already have a no-solicitation policy, you may want to adopt one.

Remember to enforce your policy consistently. You cannot prohibit some types of solicitation (March Madness gambling pools) and not others (Girl Scout cookie sales, Little League fundraisers, etc.).

Other risks

Use of employer equipment

Remind employees about existing policies that bar the use of company equipment (photocopiers, computers, work emails, etc.) for activities not related to work. If you choose to look the other way, it may undermine your ability to enforce those policies in the future.

Dress code

Employees should wear team T-shirts, hats and other gear in accordance with your existing dress code policy. This applies to employees in the office, those on-camera at virtual meetings and those meeting with customers. If you make any dress code exceptions for the tournament, be clear about the parameters, including duration.

Attendance and productivity

Managers should set an example for how to participate in tournament festivities and remain productive. Make sure they are holding employees accountable for their time and work. Set these expectations early to ensure your employees know that quality and timely work is still part of the deal.

Seek counsel as needed

Contact your insurance professional or employment law counsel if you have questions about mitigating the possible impacts of March Madness on your workplace.