Paychex

You cannot sue Paychex in court — every dispute goes to a private arbitrator in Rochester, NY under AAA rules, you must file within 2 years (shorter than most state deadlines), you can never join or start a class action, and if you lose, you pay Paychex's attorneys' fees. There is no opt-out.

Any controversy, claim, or dispute arising out of, related to, or in connection with, the Agreement or the Services ... shall be determined only by binding arbitration in Rochester, New York, administered by the American Arbitration Association ('AAA') in accordance with its Commercial Arbitration Rules ... Any dispute ... will be brought within two (2) years of when the claim accrued ... The Parties will not be permitted to bring, or participate in ... any claims brought as any type of purported class action, coordinated action, aggregated action, or similar action or proceeding. Each Party must only bring claims against each other in their individual capacity. ... The Parties agree that the prevailing Party in arbitration ... will be awarded costs and attorneys' fees (including inhouse counsel fees).

Paychex Pooled Employer Plan Services Agreement §13, SvcAgr0005 Rev. 5/2026

By signing, the employer hands Paychex a permanent license to its employees' payroll/HR data — including confidential info — to train models, build datasets derived from it, market new products, and even report payment history to credit bureaus. This license never expires.

Client grants Paychex authorization, and a perpetual nonexclusive right and license (if applicable), to collect, process, transfer, use, reproduce, host, reformat, train, model, validate, test and create derivative works from Client Information and Client Confidential Information (collectively, 'Information') ... to (i) perform or offer Services; (ii) offer additional products or services; (iii) integrate thirdparty services into the Services; (iv) develop and/or assist in the development of tools, products, and/or services (including datasets based on, or derived, or including from such Information); (v) perform analysis to determine Client's qualification to receive services; (vi) conduct or participate in research and analysis; and (vii) collect Amounts Due and may disclose Client's payment experiences with Paychex to credit reporting agencies ...

Paychex Pooled Employer Plan Services Agreement §2.3, SvcAgr0005 Rev. 5/2026

Paychex can unilaterally raise your fees or change any contract term on 30 days' notice, and if you miss the window to object, the change is 'deemed' accepted — your only recourse is to quit the service entirely.

Paychex may modify any term of the Agreement including, but not limited to, Fees, upon thirty (30) days written notice to Client of such change and the effective date thereof. Client will be deemed to have accepted and agreed to such changes unless Client elects to terminate the Agreement by written notice to Paychex prior to the effective date of the change ...

Paychex Pooled Employer Plan Services Agreement §14.7, SvcAgr0005 Rev. 5/2026

Leaving early costs you: up to six months of fees as a penalty if you cancel during the initial 12-month term, and you owe a full 30 days of fees even if you forget to give written notice.

if it terminates the Agreement during the Initial Term, Client shall be responsible for early termination Fees equal to the average monthly Fees multiplied by the lesser of (i) number of months remaining in the Initial Term; or (ii) six (6) months.

Paychex Pooled Employer Plan Services Agreement §11.1, SvcAgr0005 Rev. 5/2026

There is no deletion timeline — Paychex keeps your Social Security number, bank details, health info, and biometrics indefinitely, justified by broad catch-alls like 'developing products and services' and 'enforcing our agreements.' Even a CCPA deletion request can be denied under the same exceptions.

We retain personal information for as long as necessary to fulfill the purposes for which it was collected, including but not limited to the provision of Services, transactions requested by, or on behalf of, Clients, and necessary and essential business purposes such as complying with our legal obligations, maintaining business and financial records, resolving disputes, maintaining security, developing products and services, detecting and preventing fraud and abuse, and enforcing our agreements.

Paychex Privacy Policy Statement (Data Retention section)

Signing gives Paychex permission to robocall and text your employees with marketing messages — and that consent survives even after you cancel the contract.

By signing this Agreement, Client authorizes Paychex to contact it and its Employees using an automatic dialing system or prerecorded messages at the telephone number(s) provided, including, but not limited to phone calls and/or text messages regarding promotional offers or marketing messages. ... Termination of this Agreement does not constitute withdrawal of this consent.

Paychex Pooled Employer Plan Services Agreement §14.1, SvcAgr0005 Rev. 5/2026