With March Madness coming soon and sports gambling now legal in the majority of states, employers need to be aware of the legal ramifications of office betting pools—and the potential loss of productivity as employees keep up with the progress of this year's National Collegiate Athletic Association (NCAA) Division I college basketball tournament.
"While it is unlikely that law enforcement cares about an office NCAA bracket, the company should still understand the potential legal risks associated with offering an office pool," said Karl Rutledge, an attorney with Lewis Roca in Las Vegas.
Office pools are potentially unlawful, depending on the employer's location and the design of the activity. Maintaining a written company policy on gambling can be helpful to prevent violations of the law.
"A written company policy is a best practice, and many employers simply say, 'No betting' and have reasonable discipline for violations," said Joseph Valenti, an attorney with Saul Ewing in Pittsburgh.
Such a policy "may include setting forth considerations in terms of who can participate, the use of company computers and other company resources to participate in the pool, as well as ensuring that the pool does not interfere with an employee's work time," Rutledge said. "The policy may also want to address potential ramifications if the policy is violated, how complaints can be filed and even require approval from HR before the pool is launched."
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