The Paycom Employment Practices Case

Paycom is a human resources company that purports to help companies comply with the law.  Paycom does not practice what it preaches.

Paycom does not pay its California-based sales professionals overtime, even though they work long hours and do not qualify for the outside sales exemption.  See IWC Wage Order No. 4, Section 2(M).  As a result, these employees are denied the wages that Paycom owes them.  This is a form of wage theft.

Paycom also requires its employees to sign and comply with overbroad non-disclosure, non-disparagement, and non-solicitation agreements, even though these agreements violate numerous provisions of California law.  See, e.g., Cal. Labor Code sections 232, 232.5, 1197.5(k)(1), 1102.5(a), Business & Professions Code 16600, Government Code section 12964.5.  As a result, Paycom’s employees are illegally required to give up their right to speak, whistle blow, and compete.

Finally, Paycom requires employees to sign a “Likeness Waiver” which requires employees to give Paycom their “actions, likeness, name, appearance, and biographical material,” to be used however Paycom likes, forever and ever.  The waiver also lets Paycom sell likeness information to whomever it likes, to be used however the buyer likes.  Paycom also requires employees to waive any claims that might arise from the misuse of their likeness information.  The Likeness Waiver violates the California Constitution’s Right to Privacy and numerous laws prohibiting unlawful agreements.  See, e.g., Cal. Const. Article I, Section 1; Cal. Civil Code § 1668.

For these reasons, we have filed a Complaint against Paycom in the United States District Court for the Central District of California.  Paycom must comply with the law.  It must change its employment practices.  It must advise employees of their legal rights.  And, it must properly compensate its sales professionals and pay them the wages they are owed.

If you have information about Paycom’s illegal employment practices, or if you would like to share how these illegal practices have affected you or others, please send us a message using the on-line form on this webpage. You can also contact us at 415-433-1064.