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Court releases former ADP sales reps from noncompetes

April 10, 2019 / Jennifer Carsen

A federal district court in New Jersey has lifted constraints against two former ADP employees who signed noncompete agreements (ADP, LLC v. Lynch, Halpin, Nos. 16-cv-01053, 16-cv-01111 (D.N.J. April 2, 2019)).  One of the former sales reps previously was sanctioned for soliciting ADP clients for his new employer, Ultimate Software; the other had never violated the terms of the noncompete. The court found that, even assuming the noncompetes were enforceable, ADP's enforceable interest had expired due to the passage of time. Accordingly, it lifted the preliminary injunctions as to both of the former sales reps and declined to impose new sanctions for conduct occurring after the one-year period of the restrictive covenant.