Tags Archives: save money

How a Records Retention Policy Can Save Your Company Money

Let’s be honest. At some point in the future, even if you have never been sued before, it is more likely than not that your company will be involved in a lawsuit.

Knowing that’s the case, are you prepared? Having a comprehensive Records Retention Policy (RRP) covering all types of records may help you avoid losing a lawsuit and subsequently costing your company hundreds of thousands of dollars in damages.

Case in point: Hollingsworth v. Time Warner Cable, 168 Ohio App.3d 658, 2006-Ohio-4903.

Patti Hollingsworth worked as an audit coordinator for Time Warner Cable from 1989 until she was fired in 2002. In her last few months of employment, Hollingworth suffered from chronic sinusitis, entitling her to time off under the Family and Medical Leave Act (FMLA). During her leave, she became pregnant and a short time later was terminated — allegedly because of her poor job performance. Hollingsworth sued, asserting pregnancy discrimination under Title VII and discrimination and retaliation under FMLA.

No paper trail

At trial, Hollingsworth presented testimony that after the termination, Time Warner destroyed her error logs and erased her emails without reviewing them. Time Warner stated the error logs and emails were destroyed in accordance with its RRP. But testimony at the trial revealed Time Warner’s RRP contained no reference to error logs.

No choice but to pay up

Time Warner admitted that if they had this information it would have helped to prove the case one way or the other. By destroying the error logs and deleting Hollingsworth’s emails, Time Warner forced the jury to weigh the testimony of multiple witnesses in determining whether it had intentionally discriminated against Hollingsworth.

If the error logs and emails had been preserved, there would have been room for speculation. Without them, the jury believed Hollingsworth’s assertion that Time Warner had intentionally discriminated against her because she was pregnant and awarded her $576,812 in damages, legal fees, and back pay.

Plan ahead

BIS can help your company develop and implement a comprehensive Records Retention Policy. By working together with us, you can protect your company against lawsuits.

Does this sound like a records management service your company could benefit from? Call us at (513) 721-FILE.