State of Maine threatens to tear up Workday HR contract and request $21m refund if it cannot remedy concerns

State of Maine threatens to tear up Workday HR contract and request $21m refund if it cannot remedy concerns

The northeastern US state of Maine is threatening to cancel a contract with enterprise SaaS provider Workday and request a $21m refund.


The project, which was due to go live in the spring of 2020, was designed to overhaul the state government's ageing HR and payroll systems.

Kelsey Goldsmith, a spokeswoman for the Department of Administration and Financial Affairs, told a local news outlet the state had employed independent experts to assess the Workday implementation. It then went to the vendor with a list of concerns.


After learning about the requests from its customers, Workday paused work on the project from 12 February. The state then sent a letter to Workday requesting a cause of action to remedy the issue within 30 days. If Workday was unable to provide a remedy, Maine would terminate the contract and seek a return of funds from Workday totalling more than $21m, the spokeswoman said.

Both Workday and the state of Maine have been contacted by The Register for comment.


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Although details of the rollout remain sketchy, the importance of the Workday project, which began in 2016, was underscored by an internal document released last year.


The 2019 Government Evaluation Act Report said problems with the state's legacy estate were not limited to HR. "Across the state's ..

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