Software company lost out on big California payroll project. Now it’s suing the state

A software company that hoped to help revamp California’s outdated payroll system is suing several departments, accusing the state of cutting the firm out of the procurement process at the last minute and lowering the technical requirements for the project.

Earlier this week, the Pleasanton-based software vendor Workday filed a lawsuit in Sacramento Superior Court, alleging the Department of Technology and the State Controller’s Office violated California procurement rules by changing the parameters of the project and failing to give the company proper notice.

Last month, State Controller Malia M. Cohen proudly announced the years-long effort to modernize California’s payroll system had reached a significant milestone by reaching the final stage of approving the large IT project…

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