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Paycom Scolded in CCBill Statement

Paycom Scolded in CCBill Statement
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Aug 4, 2006 6:28 PM PDT    Text size: 
TEMPE, Ariz. — Third-party processor CCBill lashed out at Paycom Friday evening, claiming its largest competitor has “decided to compete with CCBill through corporate raids and attempts to mine CCBill’s trade secrets.”

The statement was made available to XBIZ after several civil lawsuits between the companies were disclosed Friday afternoon. CCBill said it filed suit against Paycom after learning it had been targeted in another lawsuit that was triggered by two departing executives.

“CCBill was shocked to learn that two former CCBill employees, Patrick Curran and David Salonic, have departed for Paycom, and in Curran’s case without notice, taking with them knowledge of client lists and other valuable information, which they may be disclosing unlawfully to Paycom,” CCBill said in the statement.

Paycom launched a legal volley once Curran left the Tempe, Ariz., processor nearly two weeks ago, both companies said. Curran started work at Paycom last week.

CCBill said that “Paycom claims a nonexistent legal right to receive CCBill’s high level employees and obtain CCBill’s confidential information with impunity.”

In the CCBill suit filed in Arizona, Paycom and Curran have been accused of breach of contract and confidential disclosure agreements. The suit alleges that Curran used company information to shift business from CCBill to Paycom.

“Rather than support CCBill’s right to prevent employees from taking company confidential information to competitors, Paycom chose to race to the courthouse to file suit against CCBill,” CCBill said in the statement. “Thus, CCBill has taken legal action and responded appropriately.”

Marina Del Rey, Calif.-based Paycom filed its suits in California and Arizona. The suits were preemptive, the company said, defending Curran’s right to work where he wants to.

Friday afternoon Paycom President Joel Hall told XBIZ that no wrongdoing has taken place and that CCBill's lawsuit was “baseless, overreaching, unenforceable and draconian.”

Curran now is Paycom’s chief administrative officer after serving nearly five years as CCBill’s vice president of human resources.

CCBill claims that Paycom was aware of Curran’s agreement and proceeded to employ him regardless. CCBill is seeking compensatory damages.

While California has ruled against noncompete employee agreements, California employers can still use a confidentiality nondisclosure agreement to protect company information.

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