2. If attendance at a company-sponsored event is not required, clearly state that in all e-mails or notices announcing the event or activity. Tell employees that time spent at the event will be unpaid and not considered "hours worked."

3. Don't "encourage" attendance, either by implying that attendance will help the employee advance in the organization or by implying that failure to attend will indicate that the employee is not a "team player."

4. Do not conduct any work-related activities, such as training or award presentations.

5. Plan the activity or event at an off-site location and during the weekends when possible. Doing so may support an argument that the events were strictly social and not work-related.

6. Invite family members. This supports an argument that the event is not business-related. Also, spouses and significant others are a natural deterrent against sexual harassment.

7. Avoid open bars. Arrange for a limit by hiring an outside company to serve the drinks. Ensure that the bartender has been trained to avoid serving too much, youngsters or those who've had enough already.

8. Provide activities and entertainment that appeal to a broad range of employees to avoid making anyone feel left out. Avoid physical activities that could injure the participants, especially if you're serving alcohol.

9. Don't create an atmosphere conducive to sexual harassment by providing risqué or potentially offensive forms of entertainment. Comedy clubs are fun but not the most appropriate environment for a work-related function.

10. Be direct in telling employees, before the event, of your expectation that they will treat each other with respect during the event and that company policies, including the code of conduct, the policy against harassment and the discipline policy, apply to these activities.

11. Immediately investigate any claim of inappropriate conduct that arises related to the event. Take prompt corrective action as necessary.