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 Privacy Policy now explicitly states it covers retirement account management (401k, SEP IRA, IRA accounts) and adds Stripe alongside Plaid as a third-party service provider that collects financial institution data. The policy restructures how it describes Gusto's role in different contexts: when Gusto acts as a service provider processing payroll or other data on behalf of employers, when it acts as an employer itself, or when it operates as a co-employer under a professional organization (PEO) arrangement, with separate privacy notices applying in each case. The policy introduces a new commitment that de-identified data will not be re-identified except to verify compliance with applicable law. If you connect a bank account through Stripe, that data will be treated under Stripe's Privacy Policy, which you should review separately.
View change record →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 →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...
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...
When you delete your account, your profile is no longer visible to other users and disassociated from content you posted under that account. Please note, however, that the posts, comments, and messages you submitted prior to deleting your account will still be visible to others unless you first dele...
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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 5 platforms. See the full comparison.
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