Automatic Data Processing (ADP) Risk Factor Changes

The investment community, clients, regulators, and other stakeholders may have evolving and varied expectations regarding our business, culture, and values.

In addition, as part of our client funds investment strategy, we extend the maturities of our investment portfolio for client funds and utilize short-term financing arrangements to satisfy our short-term funding requi…

Such events may create significant volatility and uncertainty and economic and financial market disruption.

Our industry is subject to rapid technological change, including as a result of AI, and if we fail to upgrade, enhance and expand our technology and services to meet client needs and preferences, the demand for our so…

We host our applications and serve our clients with data centers that we operate, and with data centers that are operated, and cloud-computing and other technology services and systems that are provided, by third-part…

Many of our businesses are highly dependent on our ability to process, on a daily basis, a large number of complicated transactions.

systems.

There is considerable intellectual property development activity in our industry.

transfer (including in some cases, the transfer outside the country of collection), processing, disclosure, use, security and retention and destruction of personal information; require notice to individuals of privacy…

We have implemented policies and procedures to monitor and address compliance with applicable anti-corruption, antitrust and competition, economic and trade sanctions and anti-money laundering laws and regulations, an…

Regulators worldwide continue to exercise a high level of scrutiny with respect to anti-corruption, antitrust and competition, economic and trade sanctions, and anti-money laundering laws and regulations.

In addition, changes in laws or regulations, or changes in the interpretation of laws or regulations by a regulatory authority, may decrease our revenues and earnings and may require us to change the manner in which w…

In addition, the nature of the office environment and remote or hybrid working is changing, which may make it more difficult to attract and retain personnel.

available-for-sale securities in our funds held for clients to satisfy our short-term funding requirements.

The COVID-19 outbreak created, and such other events may create, significant volatility and uncertainty and economic and financial market disruption.

client needs and preferences, the demand for our solutions and services may materially diminish

Many of our businesses are highly dependent on our ability to process, on a daily basis, a large number of complicated transactions.

cybersecurity incidents, which may make us more vulnerable to cybersecurity incidents as well.

We have programs and processes in place designed to prevent, detect and respond to data or cybersecurity incidents.

connection with any such claim or litigation.

result, noncompliance, the failure to meet such expectations or the perception of noncompliance or such failure, whether or not valid, may damage our reputation.

Corporate Rules (“BCRs”) as both a data processor and data controller, which permits us to process and transfer personal data across borders in compliance with EU data protection laws.

We have implemented policies and procedures to monitor and address compliance with applicable anti-corruption, economic and trade sanctions and anti-money laundering laws and regulations, and we regularly review, upgr…

In addition, changes in laws or regulations, or changes in the interpretation of laws or regulations by a regulatory authority, may decrease our revenues and earnings and may require us to change the manner in which w…

Our payroll and tax processing services involve the collection, custody and transmission of a significant volume of funds in short-time frames.

We have programs and processes in place designed to prevent, detect and respond to data or cybersecurity incidents.

of confidential or proprietary information which could limit our ability to protect, or prevent us from protecting, our intellectual property rights.

In addition, laws and regulations covering marketing, advertising, and email, telephone and text messaging communications, including the Telephone Consumer Protection Act, are applicable to our business.

The collection, storage, hosting, transfer, processing, disclosure, use, security and retention and destruction of personal information required to provide our services is subject to federal, state and foreign privacy…

plans fail to satisfy any such requirements, our PEO would likely be required to modify its current business model, and the PEO could be subject to material fines or penalties.

For our PEO to sponsor many of its employee benefit plan offerings, it must qualify as the employer of the WSEs under certain provisions of the Internal Revenue Code and ERISA.