Paychex Data Breach Class Action: Was Your Information Exposed?

A class action lawsuit has been filed against Paychex, alleging that the company's negligence led to a data breach exposing the personal information of employees whose employers use Paychex services. The lawsuit claims that Paychex failed to implement adequate cybersecurity measures, resulting in unauthorized access and theft of sensitive data.

Consumers Affected: Employees whose personal information, including names and Social Security numbers, was exposed in the data breach.

Reason for Lawsuit: Allegations of negligence in data security practices, failure to prevent unauthorized access, and delayed notification to affected individuals.

Court: The class action lawsuit was filed in the U.S. District Court for the Western District of New York.

Payroll giant Paychex is facing a class action lawsuit after a data breach exposed the sensitive personal information of thousands of individuals. The lawsuit filed on July 11, 2024, in New York federal court alleges that Paychex negligently allowed an unauthorized individual to access and exfiltrate sensitive employee data.

Lawsuit Claims Negligence Exposed Thousands to Identity Theft

Plaintiff Natalie Stevenson claims that on April 30, 2024, while attempting to exchange information with the State of California regarding unclaimed property, Paychex inadvertently exposed the names, Social Security numbers, and other personal identifying information of employees whose employers contract with the company.

The lawsuit claims that Paychex's inadequate cybersecurity measures allowed the unauthorized access and subsequent data theft. Plaintiffs argue that the company's delay in notifying affected individuals compounded the harm caused by the breach.

Stevenson further alleges that Paychex, by handling personal information of individuals who had no direct relationship with the company, assumed a duty of care to protect that data. This duty, the lawsuit contends, was breached when the company failed to implement sufficient safeguards to prevent the data breach.

“As a direct and proximate result of Defendants’ unfair and deceptive acts and practices,  Plaintiff  and  Class  members  have  suffered  and  will  continue  to  suffer  injury, ascertainable losses of money or property, and monetary and non-monetary damages, including from fraud and identity theft; time and expenses related to monitoring their financial accounts for fraudulent activity; an increased, imminent risk of fraud and identity theft; and loss of value of their PII,” the Paychex data breach lawsuit states.

Paychex Joins Growing List of Companies Facing Data Breach Litigation

The Paychex data breach class action is the latest in a series of data breach lawsuits targeting companies that handle sensitive personal information. Similar lawsuits have been filed against Panera and the Philadelphia Inquirer for exposing employee information.

Additionally, HR vendor UKG’s 2021 data breach disrupted core HR functions for weeks, resulted in millions of dollars in damages related to lost wages, benefits, and compensation. UKG is currently embroiled in a proposed $6 million settlement for a separate ransomware attack and data breach in the same year.

Meanwhile, recent high-profile data breach class action settlements include Nationwide Vision for $3.45 million, Nevada Restaurant Services for $6.49 million, and Convergent Outsourcing's $2.45 million settlement for a similar class action lawsuit.

In the Paychex data breach class action lawsuit, Stevenson aims to hold Paychex accountable for its alleged negligence and to prevent similar breaches in the future. She is seeking damages, restitution, and injunctive relief.

Case Details

• Lawsuit: Stevenson v. Paychex Inc.
• Case Number: 6:24-cv-06433
• Court: U.S. District Court for the Western District of New York

Plaintiff's Attorneys

• James Bilsborrow (Weitz & Luxenberg PC)
• Samuel J. Strauss and Raina Borrelli (Strauss Borrelli PLLC)