Over the past couple of weeks, payroll giant ADP and successful HR startup Zenefits got into what The Starr Conspiracy has called a “kerfuffle” over Zenefits’ use of ADP’s employer data and millions of employees’ personal data.  The dispute surrounds two issues: competition and data security.  Zenefits had been using third-party access to ADP data to assist employers in processing benefits, rather than using the costly integration it could have obtained through ADP directly.  ADP announced that Zenefits’ method of accessing data created a security issue, and so it terminated Zenefits’ access.  Zenefits fought back, arguing that ADP is creating a Zenefits-like product and just wants to eliminate a competitor.  Because both businesses rely on access to and use of personnel data (including sensitive personally identifiable information), this is not likely to be the last battle between HR tech vendors over the security of that data.  And, now there’s a lawsuit to boot.

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Wage and Hour