- A federal district court judge has sanctioned a former ADP sales employee at the company's request.
- ADP initially obtained an injunction ordering two ex-employees to stop soliciting ADP clients for their new employer, Ultimate Software Group. One of the workers, however, did so eight more times, in violation of the injunction.
- The court noted that ADP didn't request compensatory sanctions but instead asked the court to compel the worker to comply with the injunction. The court agreed, finding the worker guilty of civil contempt. It imposed a $1,000 fine and ordered him to pay ADP's legal fees incurred in requesting the sanctions. It also said it would impose an additional $1,000 fine for every future violation.
ADP's request stems from the sales reps' noncompete agreements, which a court upheld last year. The HR space is no stranger to these agreements, and vendors haven't shied away from enforcing them in recent weeks.
Just last month, recruiting company Randstad filed suit against former employees, demanding injunctive relief and damages. The suit alleges that three employees set up a competing staffing firm “just down the road” while still employed by Randstad.
While it's estimated that about 18% of American workers are subject to noncompetes, they're often difficult to enforce. Employers are having some success, however, when they can meet certain standards, such as showing that they are suffering harm as a result of a breach.