A recent legal filing outlines allegations that a former senior district manager left her position at a major human resources outsourcing firm and immediately began working for a direct competitor, allegedly violating multiple restrictive covenants and confidentiality agreements. The complaint was filed by ADP, Inc. in the United States District Court for the District of New Jersey on April 15, 2026, naming Judy O’Brien as the defendant.
According to the complaint, ADP asserts that O’Brien breached her contractual obligations under a Sales Representative Agreement dated March 4, 2002, as well as several Restrictive Covenant Agreements signed between 2015 and 2024. The company states that these agreements included provisions prohibiting post-employment competition, solicitation of clients or business partners, use or disclosure of confidential information, and hiring of current employees for a period following termination.
ADP reports that O’Brien had an extensive career with the company beginning in March 2002. Over more than two decades, she held numerous roles involving significant client contact and access to sensitive business information. In June 2025, she was moved into a Senior District Manager position covering several counties in North Carolina. The company claims it entrusted O’Brien with confidential details about products, services, pricing models, sales strategies, client lists, and other proprietary data developed over years of investment.
The complaint alleges that on December 12, 2025, O’Brien informed her supervisor of her intent to resign from ADP under the pretense of retirement. However, by January 2026 she had begun employment with Sidecar HR—a direct competitor—serving as a Business Transformation Consultant in North Carolina. ADP contends this move directly violated non-compete clauses within her agreements.
Further allegations include that while still employed at ADP in late 2025, O’Brien emailed herself spreadsheets and documents containing confidential client information before resigning. She also requested copies of her restrictive covenants shortly before leaving the company. After joining Sidecar HR, she allegedly solicited business from RoyceToo LLC—a prospective client she previously worked with at ADP—and maintained relationships with referral partners connected to both companies.
ADP’s filing details how O’Brien’s new territory at Sidecar overlaps with her former territory at ADP and describes her duties as virtually identical to those performed during her previous employment. The company asserts that such conduct is expressly prohibited by the non-competition and non-solicitation provisions in her contracts.
The complaint also references public social media posts showing O’Brien attending events alongside representatives from RoyceToo LLC after they selected Sidecar HR over ADP as their provider. According to ADP’s account, this sequence demonstrates not only breach of contract but also unfair competition and violation of loyalty obligations owed even after employment ends.
ADP argues that these actions have caused irreparable harm—including loss of clients and goodwill—that cannot be remedied through monetary damages alone. The company seeks immediate injunctive relief barring O’Brien from further violations; return of all confidential materials; prohibition against destruction or deletion of relevant documents; compensatory damages including lost profits; exemplary and punitive damages; attorneys’ fees; costs; interest; and any other relief deemed appropriate by the court.
The case is represented by attorneys Anna Aguilar, Lisa D. Bentley, Anne Burton-Walsh (Aguilar Bentley LLC), and James J. Boutrous (McDonald Hopkins PLC). The case number is 2:26-cv-03976.
Source: 226cv03976_ADP_Inc_v_OBrien_Complaint_District_New_Jersey.pdf
