Paychex review: Paychex payroll and hr services

Paychex, Inc. is engaging in a pattern of deceptive, retaliatory, discriminatory, and bad-faith conduct that has placed our company and employees in immediate jeopardy.

In 2019, we signed an agreement with Paychex for payroll & HR services with fees fixed for the lifetime of the account. Despite this, Paychex began withdrawing unauthorized amounts, charging fees beyond the contract. When we discovered the issue in March 2025, Paychex admitted fault and proposed a settlement, but conditioned that on our departure, even though we were not at fault. Although we began using another provider, we never closed our Paychex account.

In August 2025, Paychex agreed to resume services under the original fee terms and apply credits for prior overcharges. Instead, Paychex breached the agreement by creating a new account that excluded our payroll history, mishandled payroll processing, failed to transfer health and 401(k) benefits, and locked us out of records. Employees lost access to paystubs and verifications, creating frustration, distrust, and resignations. When we complained, Paychex retaliated by issuing a termination letter on September 8, 2025, with only 30 days’ notice.

Paychex’s actions have created a crisis: payroll is disrupted; health, dental, vision, and retirement benefits are unmanaged; workers’ compensation coverage is at risk of cancellation; and employees face financial hardship and potential loss of coverage. These failures have harmed employee morale, driven departures, and created risks of collapse. As a minority-owned business, we believe the disparate treatment we experienced raises serious concerns of discrimination.

We believe Paychex’s conduct constitutes breach of contract, fraud, misrepresentation, unauthorized withdrawals, retaliation, discrimination & bad faith under California and federal law. We request that Paychex restore our account and give us access immediately.

We reserve all our rights under the law.