A Rockland payroll company is taking on ADP in a lawsuit accusing the industry giant of defamation.
Last month, ADP salespeople contacted four customers of PayServ Payroll Solutions to solicit their business, claiming that the company is exiting the payroll business.
Payserv, of Bardonia, has never considered ceasing to offer payroll services, and “while not as big as ADP, the lawsuit states, “plans on being in business for decades to come.”
PayServ was founded in 1985 and provides services to businesses in the tri-state area. Daniel Rifkin is the president.
ADP, more formally known as Automated Data Processing Inc., is a publicly-traded company with a market capitalization of $113 billion. It is based in Roseland, New Jersey.
On Dec. 19, an ADP sales representative contacted Meals on Wheels Rockland in an email headed, “Payserv Recent News – ADP can help!” The message states, “I understand you may be exploring a new payroll and HR provider as Payserv has recently decided to exit the payroll business.”
Fifteen minutes later, an ADP district manager emailed Meals on Wheels, with the subject line: “[Urgent] Payserv exiting the payroll business.” The message states, “I know you’re probably stressed to hear that you need to find a new provider so reaching out to let you know ADP can help.”
Also on Dec. 19, according to the complaint, a third ADP sales rep contacted an accountant who refers customers to PayServ.
This time, the message attached a screenshot of a notice issued by PayServ Systems, of Angola, Indiana. “We have recently become aware of fraudulent activity by a former employee at our organization,” the message states. “As a result we are unable to continue providing payroll services.”
Meals on Wheels asked PayServ why it had not been informed.
The next day, PayServ’s attorney, Brian K Condon, of Nanuet, issued a cease and desist letter to ADP.
“My client is NOT going out of business,” the letter states. “You have purposefully and recklessly confused my client with an Indiana based company. Your irresponsible actions have severely disrupted my client’s business and has damaged him financially.”
ADP senior counsel Kevin J. Skelly responded in a Dec. 23 email that the sales people have contacted PayServ’s customers and clarified the situation.
“I trust this resolves the matter,” the message ended.
On Dec. 26, another ADP district manager emailed Meals on Wheels. “As you may have heard, Payserv … will soon no longer be able to provide payroll services. If you’re looking for a trusted paryroll solution, I would be happy to discuss how ADP can meet your needs and provide a seamless transition.”
She sent similar messages to a college and a building services company represented by PayServ. On Dec. 27, she apologized to Meals on Wheels.
PayServ is accusing ADP of interference with prospective business relations, defamation, and commercial disparagement, “even after receiving a cease and desist letter.” Alternatively, the complaint states, ADP orchestrated an “intentional and malicious smear campaign.”
PayServ is seeking $50,000 to $75,000 in damages, as well as punitive damages and legal fees. And it wants the court to order ADP to stop making untruthful statements about the company.
PayServ sued ADP on Dec. 31 in Rockland Supreme Court, and the case was moved to federal court in White Plains on Jan. 2.
ADP senior counsel Kevin J. Skelly did not reply to a message asking for ADP’s side of the story.
