Shortly after we posted this blog post yesterday updating our customers on ADP’s actions to block small businesses who use Zenefits, ADP filed a lawsuit in federal court. The central charge of the suit was defamation, specifically that Zenefits defamed ADP by claiming that ADP’s actions to block Zenefits users were motivated by competitive reasons. ADP took issue with our statement that we believed ADP was developing a competing product to Zenefits. In ADPs filing with the court, their lawyers wrote that No factual basis exists for this claim.
Within the same hour they filed suit, an ADP sales rep started selling a brand new Zenefits competitive offering — called Opum — to our shared clients. The ADP sales rep, in an email to convince one of our shared customers not to leave ADP, wrote: “We are coming out with a product to compete with Zenefits, a full service integrated online payroll and benefits solution. You can see the series of events and proof below.
ADP didn’t even wait for the ink to dry on their lawsuit before starting to sell the very product that invalidated their lawsuits 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.
To our customers: Were incredibly grateful for your continued support, and would like to re-assure you that were 100% focused on making sure your payroll continues to run smoothly — and stopping anyone from telling you who you can choose to run your HR and benefits.
We regret deeply that ADP has put you in the cross hairs of this public debate. We know this is an unnecessary distraction from your primary focus: running your business.