Better Health for All

Paychex's core offerings include benefits administration and insurance services, providing health insurance plans to clients' employees

and offering a unique healthcare solution with net-zero out-of-pocket costs for employees. The company actively works to make health benefits affordable, leveraging group buying power and tax savings, and offering a solution with net-zero out-of-pocket costs. For its employees, Paychex offers extensive preventative health measures, including flu vaccine clinics, wellness programs, stress management, resilience training, weight loss, and vaping/tobacco cessation programs, with full coverage for annual routine screenings. The company demonstrates strong healthcare data responsibility, adhering to HIPAA and HITECH, maintaining ISO 27001 certification, and reporting no monetary losses from user privacy legal proceedings in FY24. Paychex also has comprehensive mental health initiatives, including an Employee Assistance Program, resilience training (meQuilibrium) with 37% employee enrollment, and required annual Suicide Prevention Awareness Training for leaders. Additionally, the Paychex Charitable Foundation provides a $1 million annual grant to Mental Health America. For addiction mitigation, Paychex offers vaping and tobacco cessation programs. However, the company's health equity programs, including a $1 million annual grant to Mental Health America, Feeding America, Junior Achievement USA, and the National Urban League, represent approximately 0.019% of its FY24 revenue, which is considered minimal funding. The company's products do not have direct safety implications for physical or mental health, leading to a neutral score for safety record.

Fair Money & Economic Opportunity

The company's core business involves human capital management solutions and funding for businesses

, which are typically delivered digitally or through account management rather than physical "financial service access points." Therefore, the KPI for geographic inclusion, which measures coverage of banking deserts and underserved regions through such access points, is not applicable to Paychex's operational model.

Fair Pay & Worker Respect

Paychex faced a labor relations case filed in 2022 concerning coercive statements and rules

, which resulted in a conformed settlement agreement in September 2023 . Additionally, a 2021 lawsuit alleged that implementation coordinators were instructed not to record all worked hours, potentially leading to unpaid overtime . In July 2024, the company faced a class-action lawsuit following a data breach that exposed workers' names and Social Security numbers , alleging negligence . Conversely, Paychex was named one of the World's Most Ethical Companies by Ethisphere for the 16th time in March 2024 , recognized for its commitment to ethical business practices and diversity, equity, and inclusion (DE&I) initiatives . In fiscal 2024, 61% of Paychex employees were female , and 53.5% of leadership roles were held by women . Compensation-related expenses constituted 58% of total expenses in fiscal 2024 .

Fair Trade & Ethical Sourcing

The provided articles acknowledge Paychex Inc.'s consistent recognition as an ethical company by Ethisphere for 17 consecutive years

and highlight its 2023 ESG Report, which covers ethical initiatives, governance, integrity, and community engagement . However, these articles do not contain specific, quantifiable data points related to fair trade certifications, supplier audit frequencies, forced or child labor incidents in the supply chain, traceability coverage, remediation speed for violations, ethical sourcing clause coverage in supplier contracts, share of spend on high-risk materials, or supplier diversity spend. Therefore, no KPIs under the 'Fair Trade & Ethical Sourcing' value can be scored based on the evidence provided.

Honest & Fair Business

Paychex Inc. reported no regulatory fines connected to user privacy, anti-corruption, or anti-competitive behavior.

The company provides a comprehensive Code of Conduct that all employees must annually review and confirm. Additionally, Paychex enforces a third-party Code of Conduct outlining ethical standards, including anti-corruption. The company has been recognized by Ethisphere as a World's Most Ethical Company for the 17th time, with the latest recognition in 2025.

Kind to Animals

Paychex is a service-oriented company providing human capital management solutions, including payroll and HR services. Its business model does not involve the production of physical goods, animal testing, animal agriculture, or the use of animal-derived ingredients. The provided articles confirm that while Paychex is recognized for overall business ethics, this distinction does not specifically address animal welfare due to the company's industry focus

.

No War, No Weapons

Paychex's business model is explicitly described as "non-weapon-related" and "inherently sidesteps military involvement," indicating zero revenue from arms or defense contracts. This also means the company has no exposure to any weapons, including controversial ones, and therefore no defense assets requiring divestment. Additionally, Paychex has demonstrated support for veterans by joining the Veteran Jobs Mission in 2017

and partnering with the Hiring Our Heroes program in 2015 to aid their transition to civilian employment.

Planet-Friendly Business

Paychex offsets 100% of its electricity use through renewable energy initiatives, which include installing solar panels on buildings and signing a 20-year power purchase agreement with a Texas wind farm

. The company also implements energy-efficient technologies such as LED lighting and efficient HVAC systems . In fiscal year 2023, Paychex avoided using over 43 million sheets of paper and recycled 74.8 metric tons of electronic waste .

Respect for Cultures & Communities

Paychex Inc. has no reported cultural appropriation incidents. Its business model as an HCM solutions provider means that Free, Prior, and Informed Consent (FPIC) processes, cultural site protection, and social license to operate are not applicable to its operations, and no cultural incidents requiring a response have been reported. The company demonstrates a commitment to corporate responsibility through its Board's Nominating & ESG Committee

and its Corporate Responsibility Report . It engages in community involvement, including $4 million in charitable contributions in 2023 focused on mental, physical, and financial health . Paychex also supports diversity, equity, and inclusion (DEI) through Employee Business Resource Groups and an Inclusion and Diversity Training series . However, the provided articles do not contain specific, quantifiable evidence regarding formal partnerships with indigenous or local community groups, cultural preservation investments, or other metrics directly related to the 'Respect for Cultures & Communities' ethical value.

Safe & Smart Tech

Paychex experienced one incident of unauthorized data use in March 2024, involving the accidental disclosure of personal data, including full names and Social Security numbers, to an unauthorized individual during an information exchange with the State of California

. The company offered affected individuals one year of complimentary credit monitoring and recovery services . A class-action lawsuit filed against Paychex regarding this incident was voluntarily dismissed in August 2024 .

Zero Waste & Sustainable Products

In fiscal year 2023, Paychex reduced paper usage by 37%

and avoided printing over 43 million sheets of paper by limiting paper mailings and promoting paperless payroll systems and digital platforms . The company also recycled 74.8 metric tons of electronic waste in its U.S. operations during the same fiscal year . Paychex updates its environmental policy annually . Through its promotion of paperless payroll systems and digital platforms, the company provides customer education that enables waste reduction.