Court Removes Non-Compete Injunction from Former ADP Sales Reps
A federal court in New Jersey has lifted a preliminary injunction enjoining former ADP salesmen from engaging in certain conduct alleged by ADP to violate non-compete provisions in their employment agreements. The injunction had been originally entered in June, 2016, months after Jordan Lynch and John Halpin left their employment with ADP. The restrictive covenants were contractually limited to one year, subject to tolling.
ADP conceded and the court ruled that the preliminary injunction should be discontinued as to Lynch because more a year had passed and Lynch never violated the preliminary injunction.
Within a few days after leaving ADP, Halpin started working for an ADP competitor and solicited several ADP clients from January 2016 through June, 2017. The court found that some of Halpin’s contacts with ADP clients during that time violated the preliminary injunction. The court rejected ADP’s argument that Halpin continued to violate the preliminary injunction by working for the competitor, thereby tolling the one year period, as there was no evidence that Halpin solicited any ADP clients between July 1, 2017 and October 17, 2018, a period of more than one year.
Read the court’s opinion here. Contact us at Ossian Law regarding any information technology law question.