Data breach settlements are more and more common every day, and the only thing affected individuals can do after the fact is to try to protect their data better and seek some form of compensation. This is what has happened with the new Paycom data breach.

Paycom is a provider of payroll and human resources technology to thousands of businesses, and in 2023 it suffered a data breach in which all the client’s personal information stored in their servers was compromised. We know for sure that data from clients through MOVEit Transfer, a secure file transfer application, was accessed during the breach, compromising the identity of the affected individuals.

Following the breach, a class action lawsuit was filed against Paycom, arguing that the company failed to implement ample cybersecurity measures to prevent the data breach and holding them responsible for any consequences that may have arisen after the fact.

Class action lawsuits are usually filed by one or more individuals on behalf of a larger group with similar complaints against a company or organization. When the suit gains class action status, it applies to all people who may have been affected in the same way. Companies often choose to settle these cases, offering payments to class members, who then give up their right to pursue further legal action. These settlements typically include statements from the company denying any wrongdoing.

The Paycom suit is not an exception to this, as the company settled for $900,000 with the conditions of not admitting to any blame and stopping the legal proceedings. Those affected by the breach will be able to claim a portion of the settlement soon, but a few conditions will need to be met in order to access the money.

Paycom settlement eligibility criteria

The first requirement to receive a payment is that the affected individual must living within the United States. The second and perhaps most important requirement is that the individual looking to collect some of the settlement must have been affected by the breach, which in this case means have their personal information with Paycom accessed during the period of the breach between July and October 2023.

Paycom notified all affected individuals that had their data compromised by the breach soon after it was discovered, so if you were not notified by the company, odds are you do not have a claim. Some of the individuals may not have been notified directly by the company but may have gotten a postcard notice about the settlement with a Claim Login ID and Claim Login PIN printed on it. This means that you should probably contact the class administrator by phone at (844) 804-3284 or email at [email protected] to ensure that you are part of the settlement.

Amount to claim in the settlement

For those who wish to claim part of the settlement, you can do so through the website and credentials provided in the postcard. No extra documentation is needed as the company is aware of who was affected. But not everyone will be able to claim the same amount of money. Those who have documented out-of-pocket losses due to the breach itself can claim a maximum of $2,500 per person, and those who have losses that stem from identity theft after the breach exposed their information can claim $4,200, along with three years of credit-monitoring services.

There are two deadlines that affected individuals should be aware of, although they both fall on the same date, November 7, 2024. These deadlines cover filing the claim or the exclusion and objection deadline. Those who chose to do neither will lose out on the current payment as well as the option to claim in the future if their situation differs from the one detailed in this suit.

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