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ADP sues Zenefits for defamation - and then launches a new Zenefits-like product!

The battle between ADP and HR software platform Zenefits heated up a notch when 1) ADP filed a lawsuit against Zenefits in federal court and 2) was then "busted", by an email to a mutual client, launching a competitive product called Opum! This has to make Silicon Valley Season 3

ADP didn’t even wait for the ink to dry on their lawsuit before starting to sell the very product that invalidated their lawsuit’s central claim. In light of this new evidence, it’s hard not to see ADP’s stated reasons for blocking Zenefits — “security reasons” and “a traffic spike” — as anything other than a pretext for a competitive campaign designed to clear the way for its new bundled product. And the most troubling thing is that ADP has decided to disrupt the smooth functioning and day-to-day operations of hundreds of small businesses just to get a leg up on competing with Zenefits. We call on ADP to stop making life more difficult for small business customers and live up to its corporate value: “integrity is everything.”

Tags

payroll, insurance