Rippling is suing Deel for alleged corporate espionage – what does this mean for the HR technology sector?

On March 17, workforce management platform Rippling filed a lawsuit in the US against a HR tech competitor, Deel.

In the suit, Rippling alleges that Deel participated in “a calculated and unlawful corporate espionage scheme”.

In an act of alleged “corporate theft”, Rippling accuses Deel of cultivating a “a spy to systematically steal its competitor’s most sensitive business information and trade secrets”.

In addition, Rippling’s suit declares that this “attack” by Deel was perpetrated over four months with the aim to “steal and weaponize critical competitive data”.

Rippling alleges that the spy was reporting findings into the highest level of senior leadership at Deel, notably Philippe Bouaziz, CFO and father of Deel’s CEO and Co-Founder Alex Bouaziz.

The aim of the suit for Rippling is “to stop Deel’s theft and misuse of its confidential and proprietary information, to prevent Deel from further harming Rippling through its unlawful competition”, as well as “to obtain compensation for the significant harm to Rippling” by Deel’s actions.

UNLEASH reached out to Deel to get a comment on the suit.

A Deel spokesperson shared: “We deny all legal wrongdoing and look forward to asserting our counterclaims.”

While this lawsuit is far from the first time Deel and Rippling have clashed, the allegations in the suit are significant and could make this the largest US corporate espionage case in the 21^st century.

With the help of HR and legal experts, let’s dig into the suit to figure out the implications for HR technology (and HR more widely) as a result.

More than a ‘legal drama’: The impact of Rippling vs Deel on HR and HR tech

As C L Mike Schmidt, Lawyer at Schmidt & Clarke LLP, tells UNLEASH: “Rippling claims that Deel engaged in anti-competitive practices by poaching employees and customers, which violated their non-compete agreements.

“This case highlights the tension between competition and business protection in tech-driven industries.

Schmidt adds: “The accusations are based on Deel’s actions that allegedly harmed Rippling’s business by diverting clients and possibly stealing intellectual property.

“It’s an example of how aggressive market tactics can lead to legal battles that impact an entire industry.”

As a result, for Schmidt, “the outcome of this case could set a precedent” in the HR technology space.

He believes that “this lawsuit will likely challenge how businesses approach non-compete clauses and intellectual property rights in tech”.

Building on this argument, Oliver Morissey, Founder of Empower Wills and Estate Lawyers adds that this lawsuit “emphasizes the necessity for employees and HR departments to remain alert about the protection of corporate secrets and organizational connections”.

He argues that this suit (and the resulting open dispute) could put both Rippling and Deel’s reputations at risk – this is regardless of the proof in the claims as “their customers might become reluctant to work with any of them”.

For non-profit consultancy VISIONS Inc CEO Elika Dadsetan-Foley, the Rippling lawsuit against Deel “isn’t just a legal drama—it’s a cautionary tale about the relational cost of competition in the HR tech space”.

“Regardless of the legal outcome, this case points to a deeper issue in the HR tech industry: a fast-scaling, high-stakes environment where values like trust, transparency, and respect for intellectual property risk being sidelined in pursuit of market dominance,” adds Dadsetan-Foley.

Her advice for HR leaders is to think very carefully when choosing their technology partners – “this isn’t just about choosing a vendor; it’s about aligning your people tools with your people values”.

“If trust is the foundation of healthy organizations, then HR vendors must embody the same ethics they’re asking their clients to cultivate. Trade secret theft allegations don’t just hurt the companies involved—they erode confidence across the sector,” concludes Dadestan-Foley.

Tami Nutt, VP of Research & Insights at Aspect43, shares that while some corporate rivalries – Pepsi vs Coke, Windows vs Apple and Nintendo vs Sega – actually spurred innovation and benefitted the customer, this Rippling Deel situation is very different.

Rather than being about intellectual property, these are accusations of “unethical business practices”, and in this scenario, “nobody wins – especially not the customers”.

Nutt continues: “Instead of driving better products, these disputes often shift focus inward, draining time and resources that could be spent improving the user experience.

“HR professionals already deal with enough workplace drama. They’re not looking for more corporate battles—they just want reliable, efficient technology that makes their jobs easier.

HR leaders should stay informed, do their due diligence on selecting vendors that prioritize innovation and integrity, and choose technology that genuinely makes their work better.”