Direct payment of $4,200 by Paycom to its Customers For This Settlement- Claim Dates Announced

In 2023, Paycom—a major provider of payroll and human resources technology—experienced a significant data breach, exposing clients’ sensitive personal information.

Overview of the Paycom Data Breach and Class Action Settlement

The breach occurred through MOVEit Transfer, a secure file transfer application used by Paycom, which attackers exploited to gain access to the data of countless individuals.

The breach’s fallout led to a class action lawsuit against Paycom, asserting that the company’s cybersecurity measures were insufficient to prevent the attack, leaving client information vulnerable. Class action lawsuits allow individuals with similar complaints to file a joint suit against a company or organization, often resulting in settlements. Once a suit attains class-action status, all similarly affected individuals can seek compensation if the company agrees to settle. In response to the claims, Paycom opted to settle for $900,000 without admitting fault, halting further legal proceedings. Eligible clients impacted by the breach may now apply for a portion of this settlement.

Eligibility Requirements for the Paycom Settlement

Those affected by the Paycom data breach must meet specific conditions to claim part of the settlement. First, claimants must reside within the United States and have had personal information stored with Paycom accessed during the breach period, which spanned from July to October 2023. Paycom notified all impacted individuals shortly after discovering the breach. However, some clients received postcard notifications with a unique Claim Login ID and PIN to facilitate their claim submission. Individuals who believe they are affected but haven’t received direct communication from Paycom should reach out to the class administrator at (844) 804-3284 or email [email protected] to verify their status and ensure eligibility.

Compensation and Claim Process for Affected Individuals

Affected individuals who qualify for compensation can use the credentials provided in their postcard notification to claim their share of the settlement through the official website. No additional documentation is required as Paycom has a record of who was impacted. The amount each person can claim varies based on the damages incurred:

• Out-of-pocket losses directly related to the breach itself are eligible for reimbursement of up to $2,500 per person.
• Losses due to identity theft arising from the breach can qualify for compensation up to $4,200 per person, plus an additional three years of credit monitoring services.

Both filing a claim and submitting an exclusion or objection to the settlement must be completed by November 7, 2024. Failing to meet this deadline will prevent affected individuals from accessing current compensation and limit their ability to seek further claims related to this specific breach in the future.