When Gusto processes employee data on behalf of an employer-customer, the employer is the data controller and Gusto acts as a service provider or data processor, which limits employees' direct rights against Gusto.
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 processor designation clarifies the legal relationship between Gusto and employers regarding data responsibility. Under data protection frameworks, processors have specific obligations regarding data handling, security, and limitations on use that differ from those of data controllers.
The updated policy explicitly discloses that Gusto sells or shares personal information (defined under state privacy laws) with third parties including business, advertising, and technology partners. The company describes 'sale' as providing information in exchange for valuable consideration, and 'share' as providing information for cross-context behavioral advertising. This disclosure formalizes practices that may have been permitted under previous language but were not explicitly described. You can opt out of sales or sharing of personal information through the Cookies, Analytics, and Other Tracking Technologies section.
View change record →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 →If your employer uses Gusto, Gusto processes your data on your employer's behalf, and your employer may control what data is shared and retained. Employees should be aware that they may need to contact their employer to exercise certain data rights.
How other platforms handle this
Where ZipRecruiter processes your Personal Data in the capacity of a service provider (data processor), and you seek access, or want to correct, amend, or delete your Personal Data...we will provide you with the data controller's contact information, so you can contact them directly.
to request that your data be transferred to a third party (data portability)
Your organization may allow you to access and export your data in order to back it up or transfer it to a service outside of Google.
"With respect to the Employer Data we receive, collect, and process to provide you with our products and services, Gusto acts as a data processor/service provider under applicable data protection laws. When acting as a processor/service provider, Gusto collects and processes Employer Data at your direction or as otherwise required or permitted under applicable data protection laws.Excerpt from Gusto's Privacy Policy
The controller/processor distinction is critical for CCPA/CPRA, GDPR, and state law compliance.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
Ad personalization controls removed. Contact scanning added. Advertiser data partnerships quietly dropped. A timeline of every change.
Get the research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.
The processor designation clarifies the legal relationship between Gusto and employers regarding data responsibility. Under data protection frameworks, processors have specific obligations regarding data handling, security, and limitations on use that differ from those of data controllers.
If your employer uses Gusto, Gusto processes your data on your employer's behalf, and your employer may control what data is shared and retained. Employees should be aware that they may need to contact their employer to exercise certain data rights.
ConductAtlas has identified this type of provision across 290 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Gusto.