WINK News Investigates: Lawsuit claims payroll company filed and signed state documents for clients without their knowledge

Businesses have been through so much in the past two years. Before the high inflation we’re currently seeing, they were struggling to stay open during the pandemic.

Some small businesses say companies they paid to help them remain open made it harder. And, a court case could take some of those allegations to a jury.

Tanya Rubin makes tasty “fun” for a living. “It is fun,” she said.

“It’s a frozen yogurt and smoothie ice cream place,” Rubin said.

But these days are a little bittersweet. When the pandemic hit, she adapted.

“Those first three months were really bad. And the only reason we survived is because we did have a drive-thru,” said Rubin.

The drive-thru may have saved the business Froyo Fresh in Tampa. But, she says, a payroll problem made pushing through the pandemic harder.

WINK News anchor  Chris Ciffate asked Tanya, “So at first did it work out?” Rubin said, “Yeah.. at first, it did.”

When you look at all the numbers on your paystub, there’s one that you don’t even see. That number is what your boss pays the state for unemployment premiums on your behalf. Often, a business owner like Rubin hires a payroll company to collect it from them and then pay the state. Setting that up involves filling out a detailed state application.

“I never filled that out,” Rubin said.

Rubin says she never even knew about that detailed application, called a DR-1 when she hired payroll giant ADP. “I never ever signed the DR-1,” she said.

Fort Myers attorney Robert Goodman doesn’t represent Tanya Rubin, but he has interviewed her and heard her same complaint from others. “I’ve seen it happen with others,” said Goodman. “From the people we’ve talked to that used to work there, they’ve said yes, we were instructed to do this.”

Goodman represents a fired ADP salesperson who is being sued by the business here in Lee County for allegations he made while working at ADP. He also filed a countersuit against the payroll company.

“So he brought his concerns about an illegal activity that he’d been instructed to participate in,” said Goodman.

Witness testimony in the suit appears to back up the claim that ADP Sales Reps filled out and signed state documents for clients without them knowing. “This is kind of done behind the scenes back at the office,” a witness said.

Ahmed Muhammad is a former ADP salesperson and a witness in the lawsuit. He’s not involved with Tanya Rubin’s account and is under oath in this video. He talks specifically about how he was trained to fill out that DR-1 application and sign it for new clients.

“Did the customer know or authorize you to sign their name on an electronic application with the State of Florida?” Goodman asked. “No, sir,” Muhammad said.

And, he says, it all has to do with making sales. “It’s all targets, targets, targets.. units, units, units… at all costs,” said Muhammad.

“Makes me really angry,” said Rubin.

But, Goodman says it’s bigger than that. “So in my opinion, it appears that the Florida Department of Revenue has known that this has been going on for years. And has turned a blind eye to it,” Goodman said.

He says FDOR has collected $19 million in fines and penalties going back to 2012. And part of those were collected from small businesses like Froyo Fresh.

“And, you know, it’s a mark on my company,” Rubin said.

FDOR refused to comment for this story, but, regarding the lawsuit, ADP told us that their former employee “and/or his counsel have also filed complaints with multiple government agencies at the Federal and state level, but each of those agencies have closed their investigations without any actions taken against ADP.”

“It’d be like if you bought a car or signed a contract to purchase a new house.. but the agent signed your name to the agreement. I don’t see how you could be held to that purchase agreement,” said Rubin.

Rubin finally has her account back in good standing. And ADP did pay a lot of the penalties she was assessed.

The lawsuit against ADP’s former employee goes to trial in the spring or summer. ADP also says they terminated him because of misconduct and look forward to their day in court.