What to Do If an Alcohol Server Has Been Cited for Serving a Minor or an Intoxicated Person: A Guide for Liquor License Holders

October 17, 2024

Running a business that serves alcohol comes with great responsibility. As a liquor license holder, you understand the importance of staying compliant with the law, especially when it comes to preventing underage drinking and over-serving customers. However, mistakes can happen, and when they do, they can lead to serious consequences. If one of your employees has been cited by law enforcement for serving alcohol to a minor or to an obviously intoxicated person, it’s crucial to take the right steps to protect your business and minimize any potential penalties.

Here’s what you need to know and how to proceed if this situation arises.

1. Understand the Charges

When an alcohol server is cited for serving a minor or an intoxicated person, it can lead to several consequences for both the individual and the business. These infractions are considered serious violations of alcohol laws and can result in:

Fines
License suspension or revocation
Civil or criminal charges
Increased insurance costs
Damage to your business's reputation

2. Immediate Actions for the Server

While each jurisdiction may vary, generally, the server involved will be required to appear in court. Encourage your employee to cooperate with law enforcement and legal proceedings. It’s also essential that they avoid making any statements without legal representation. Remind them that although they are personally cited, your business will also be scrutinized as part of the incident.

What the server can do:

Contact legal counsel to represent them during legal proceedings.
Review the details of the citation and the evidence presented against them.
Take additional alcohol compliance training if offered, as this may demonstrate their willingness to correct the behavior and could be viewed favorably during legal proceedings.

3. Steps for the License Holder

As a business owner or liquor license holder, you are directly affected by these violations. A citation against one of your employees can lead to your license being investigated, suspended, or revoked, depending on the severity and frequency of violations.

Here’s what you should do:

Consult with an Attorney: The first and most critical step is to seek legal representation. A knowledgeable attorney can help you understand the implications of the citation and guide you through any necessary legal proceedings. It's important to note that this article does not constitute legal advice. Always consult a licensed attorney for specific legal guidance.
Document the Incident: Record all relevant details about the event, including the time, date, involved individuals, and any security footage or witness statements. This documentation could be helpful in defending against any penalties or mitigating the consequences.
Review Your Alcohol Compliance Policies: Take this opportunity to review your current alcohol service policies and procedures. Are employees following protocol? Is your staff adequately trained to prevent underage drinking and over-serving? Identify any gaps in your current system and take steps to strengthen compliance.
Implement Additional Training: Offering your staff extra training after an incident can demonstrate to regulators that you are committed to preventing future violations. Consider enrolling your staff in alcohol compliance courses, such as the ones available through LiquorExam.com, to help them stay updated on best practices.
Cooperate with Authorities: If your business is investigated, be prepared to fully cooperate with law enforcement and any regulatory agencies. Providing the necessary information and complying with investigations can help reduce penalties.

4. Know the Potential Penalties

While each state has its own set of laws and penalties for alcohol-related violations, common consequences include:

Fines: Your business could face significant financial penalties, depending on the number and severity of violations.
License Suspension: If this is a repeat violation or deemed particularly egregious, your liquor license could be suspended for a period of time.
License Revocation: In extreme cases, or if multiple violations have occurred, your liquor license could be revoked entirely, ending your ability to legally serve alcohol.

Understanding the risks can help you act quickly to address any violations and prevent them from happening again in the future.

5. What the License Holder Can Do if Penalized

If you receive a fine or a license suspension/revocation notice, you still have options. Again, legal advice is critical, but here are a few steps to consider:

Appeal the Decision: Many jurisdictions offer the ability to appeal fines or suspensions. If you believe there was a mistake or extenuating circumstances, filing an appeal may help reduce penalties.
Mitigate Future Risk: Strengthen your internal controls, enhance employee training, and implement stricter ID-checking procedures. If you can demonstrate a commitment to compliance, it may help mitigate penalties or prevent future issues.
Consider Settlements: In some cases, regulators may be open to settling cases rather than proceeding with harsher penalties. Legal counsel can assist in negotiating settlements that are more favorable to your business.

Final Thoughts

Facing a citation for serving alcohol to a minor or an obviously intoxicated person is a serious matter, but with the right steps, you can minimize the damage to your business and prevent future violations. Always seek legal advice from a qualified attorney to ensure your rights are protected and that you understand all available options. In the meantime, focus on compliance, training, and accountability to maintain a safe and responsible alcohol-serving environment.

For training solutions that help you and your team stay compliant, visit LiquorExam.com, where we offer comprehensive alcohol compliance courses designed for servers, bartenders, and license holders.