Staffing Software Vendors Settle Legal Feud

The lawsuit between two Eagan, Minn. staffing software and services vendors has been dismissed.

Neither TempWorks nor its upstart competitor Avionte would discuss the terms of the settlement, though John Long, Avionte founder and president, said in an email, “Can’t disclose any terms, though I’d like to. The result was as expected and we are pleased with it.”

TempWorks CEO Gregg Dourgarian said about the same thing: “We’re delighted with the outcome.”

The two companies sued each other last year, with Avionte claiming in a state court lawsuit that TempWorks was badmouthing it to clients and was sending them letters demanding they stop using Avionte software. TempWorks countersued in federal court, charging Avionte had pirated parts of its staffing software.

All the players know each other, and though Eagan is a Minneapolis suburb, it’s small enough that the principals might run into each other. Long was previously president of TempWorks, and one of the company’s original employees. His partner and Avionte Chief Technology Officer Phi Ngo had been a senior analyst at TempWorks. Sandeep Acharya, chief operations officer, had been TempWorks director of consulting services. And Samar Basnet, chief software architect at Avionte, had been a senior software analyst for TempWorks.

Whatever the agreement, neither company apparently had to give up products or clients. Both companies told us they are continuing to sell their front- and back-office software and other services. “Avionte is definitely continuing to sell our products and business,” says Long.

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TempWorks, which broadened its offerings a few years ago, has been moving strongly into payroll services, according to Dourgarian.

“We got a ton of business taking customers away from ADP,” he says, attributing it to the economy which has forced companies to cut expenses. TempWorks, he explains, provides equivalent payroll servicing, but at much less than what ADP charges. And, he points out, it integrates with the TempWorks staffing software.

Avionte’s CEO, meanwhile, says the company’s software business “has been great” (tripled year over year last year, doubled so far this year).

Avionte was founded in 2006; TempWorks in 1994.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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1 Comment on “Staffing Software Vendors Settle Legal Feud

  1. TempWorks has a good software platform. Unfortunately, the company surrounding thesoftware is fundamentally dishonest with feckless leadership. I signed a contract with TempWorks Management
    Services to provide, among other things, EOR services to my start-up.
    The last business day before the first temporaries were being sent out, they told me they “were not moving forward with my company.” Again,
    temps were going out the next day. They would not tell me why nor would they respond to any communication with me
    whatsoever. Pathetic!
    I got an attorney in Minneapolis and sued them in Minnesota court and won. In the written judgment, the judge found President & CEO
    David Durgarian’s testimony ‘not credible’. The judge found COO Mari Kautzman’s testimony ‘not credible’. The judge found Executive Vice President’s testimony ‘not credible’. This is what these people
    were willing to do to try and mitigate their responsibility. The President & CEO, COO and Executive VP were willing to give false testimony under oath.
    Since broadcasting my results, I have heard from – and
    learned of – dozens of companies across the United States who had problems with TempWorks and their egregious behavior, their dishonesty, their ruthlessness and their complete lack of ethics or business acumen.
    I will happily provide to you a copy of the written judgment
    from Minnesota District Court which validates my story. PLEASE contact me before signing a contract for any services with TempWorks. If you decide to proceed with them, PLEASE have an attorney view the contract prior to signing as they, admittedly, bargained for language that protects them at the expense of their clients no matter what.
    I can be reached @ dstemm@180personnel.com

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