Gusto retains your personal data even after you close your account, for as long as necessary to meet legal, regulatory, and business purposes.
This analysis describes what Gusto's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The clause establishes that data retention obligations are determined by regulatory requirements rather than user preference, creating a structural limitation on data deletion capabilities within the service architecture.
The updated terms make explicit that using Gusto's background check service constitutes a binding agreement. Previously, the terms of the service relationship may have been less clearly stated. Now, the agreement clarifies that an authorized signatory represents they have authority to bind the organization, and that three actions trigger binding acceptance: checking a box, initiating a background check, or accessing the service. This means employers should ensure the person clicking through has actual authority to commit the organization to the full Background Check Customer Agreement before proceeding.
View change record →Developers who build integrations with Gusto's API are now required to resolve any disputes with Gusto through mandatory individual binding arbitration rather than pursuing class action lawsuits, which may limit their legal remedies and transparency into disputes with Gusto. Additionally, Gusto explicitly reserves the right to modify, restrict, or discontinue its developer tools and API access at any time without notice or liability, meaning developers could lose access to critical platform capabilities that their business depends on without warning or recourse. Developers should review Section 19 of these terms carefully and consider whether the arbitration requirements and lack of access guarantees are acceptable before continuing to build on the Gusto API.
View change record →The updated terms now explicitly state that employers accept mandatory individual arbitration and waive the right to participate in class-action lawsuits or pursue relief in court with a jury trial. This significantly limits employers' ability to challenge Gusto's practices collectively or seek resolution through the court system. Any disputes employers have with Gusto must be resolved individually through arbitration, which typically involves private, binding proceedings with limited appeal options and discovery rights compared to court litigation.
View change record →Your most sensitive personal and financial data will continue to be held by Gusto after you stop using their service, potentially for years, due to regulatory and legal retention requirements. This limits the practical effect of a deletion request in some cases.
How other platforms handle this
We generally retain your personal data as long as you keep your account open or as needed to provide you Services. This includes data you or others provided to us and data generated or inferred from your use of our Services. In some cases we choose to retain certain information (e.g., insights about...
You may request deletion of your account at any time. When you request account deletion, we will delete or anonymize your personal information unless we are required to retain it by law, or unless we need to retain it for legitimate business purposes such as resolving disputes, enforcing our agreeme...
If you follow the instructions here, your account will be deactivated and your data will be queued for deletion. When deactivated, your X account, including your display name, username, and public profile, will no longer be viewable on X.com, X for iOS, and X for Android. For up to 30 days after dea...
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"As a financial institution, Gusto is subject to certain retention requirements under state and federal law. As a result, certain types of Employer Data may not be removed from the Platform.— Excerpt from Gusto's Gusto Privacy Policy
Extended data retention implicates CCPA/CPRA exemptions for data retained for legal compliance purposes, IRS and state payroll record retention requirements, and potential conflicts with data minimization principles under applicable state privacy laws. Compliance teams should map retention schedules to specific legal obligations.
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The clause establishes that data retention obligations are determined by regulatory requirements rather than user preference, creating a structural limitation on data deletion capabilities within the service architecture.
Your most sensitive personal and financial data will continue to be held by Gusto after you stop using their service, potentially for years, due to regulatory and legal retention requirements. This limits the practical effect of a deletion request in some cases.
ConductAtlas has identified this type of provision across 3 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Gusto.