In 2024, Paychex Inc. faced a data breach that led to a proposed consumer class action lawsuit. The lead plaintiff, Colleen Waterman, alleged that Paychex negligently failed to protect her personal information, but the case was dismissed by Judge Joseph F. Leeson of the US District Court for the Eastern District of Pennsylvania. The judge ruled that Waterman did not demonstrate sufficient evidence linking her claimed injuries to the breach. While the lawsuit was dismissed without prejudice—allowing for an amended complaint—the incident highlights potential exposure of personal data. A separate lawsuit related to the same breach was voluntarily withdrawn by plaintiffs in August 2024. The breach did not result in confirmed data theft or financial harm to individuals, but it raised concerns over data security practices at Paychex, a major payroll and HR services provider. The lack of concrete evidence of stolen or misused data suggests the impact was limited to reputational and legal scrutiny rather than direct financial or operational damage.

The California Office of the Attorney General reported a data breach involving Paychex, Inc. on May 9, 2024. The breach, which occurred on March 22, 2024, resulted in the unauthorized exposure of personal information, including full names and Social Security numbers. Approximately UNKN individuals were affected.