There is an ongoing debate concerning the compensability of injuries that occur during company sponsored recreation. As Dr. Suess might say, “These things are fun and fun is good,” except when your employer makes you do it. There is a fine line between employees participating because they want to, as opposed to feeling that they have to.
Clark Kauffman has a nice summary of the compensability issues in the Des Moines Register. He sites the case of Robert Powell, an employee of the Cedar Rapids Gazette, who injured his back bowling at a “Family Fun Fest” sponsored by his employer. His injury was compensable – to the tune of $100,000 – because the employer urged participation: “Don’t make us cancel this event from lack of interest/attendance.”
Iowa has some interesting case law regarding compensability:
Hunting: way back in 1933 Claire Fintzel was trying to close a deal while pheasant hunting with a business associate. He was shot in the leg. He received $15 a week for 100 weeks (a paltry sum, to be sure, but this was back in the depression).
Boating: In 1941 Roy Linderman, a salesman for Cowie Furs, won a company-sponsored contest for highest sales. His prize? A fishing trip, during which, alas, he drowned. His death was deemed compensable.
Basketball: In 1982 Professor Charles Campolo of Briar Cliff College was partcipating in a faculty-student basketball game. At age 40, Campolo had a known heart condition. He died in the game’s final seconds. Because the school derived a benefit from his participation, the death was compensable.
State by State
Kauffman takes a brief look of the compensability issue from state to state. It usually boils down to this: is the event truly voluntary? Does the employer derive a direct business benefit from the activity? To some degree the burden of proof is on the employer to demonstrate that there is no pressure on employees to participate – that participation is not the only true measure of “team spirit.”
The state of Tennessee recently revised their comp statute, to provide clarification on the compensability issue. The statute is brief but comprehensive:

Public Chapter 407 (SB1909/HB1500) excludes from workers’ compensation injuries that occur during recreational activities that are not required by the employer, and do not directly benefit the employer. Workers’ compensation injuries that are covered under workers’ compensation include those that occur where participation:
1) was expressly or impliedly (sic) required by the employer; or
2) produced a direct benefit to the employer beyond improvement in employee
health and morale; or
3) was during work hours and was part of the employee’s work duties; or
4) occurred due to unsafe conditions the employer had knowledge of and failed to
curtail or cure the unsafe condition.

This statutory language summarizes the issues without tying the hands of judges unnecessarily. It’s a good model for legislators contemplating changes. Beyond that, it’s good policy guidance for employers who want to encourage team building and fun, without creating inadvertant comp exposures.
NOTE: Our collegue Julie Ferguson has related blogs here and here.