Handler attended the party for Standard Hotel employees on the restored boat in the Hudson River, docked north of Chelsea Piers, with Balazs on Monday.
But sources at the event say a bouncer caught her and “a dude with gold shoes” in a stall in the men’s bathroom and ushered them both out.
A spy said Handler started her night out with vodka on the rocks and was “totally cool and unassuming.” But things apparently got wilder later in the evening.
Handler hasn’t been shy about past drug use. In her biography, “My Horizontal Life,” she recounts taking an ecstasy tablet with her gynecologist on a boat ride to Catalina Island.
“A drug-toting gynecologist! I died and gone to heaven,” the late-night talk-show host wrote.
“We all popped our tabs and wandered onto the deck,” Handler recalled. “The thought occurred to me this was possibly the happiest day of my life.”
Writer Morgain McGovern, who claims to be a former friend of Handler, told Radar Online she thought she was “going to die” from hanging out with the E! star, with whom she claimed she regularly used cocaine and ecstasy in 2003. “Someone should have staged an intervention,” McGovern said. “Every time we went out, drugs were involved.”
Balazs, who has also been linked to Uma Thurman, Renée Zellweger and Naomi Campbell, has a thing for bad girls, and romanced rocker Courtney Love before hooking up with Handler.
Handler’s rep, Stephen Huvane, who initially denied that Handler attended the Balazs party even though she was pictured there, said, “She was at the employee party but not at the Standard. She was not kicked out of the men’s room -- that is a fabrication.”