Gusto collects and processes health and medical information, including insurance enrollment data and medical plan details, as part of its employee benefits administration services.
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 a dual data management structure where both employers and individual members have upload and access capabilities within the platform, creating a shared data repository that supports payroll, tax, and benefits administration workflows.
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 →Your health and medical benefit information is processed by Gusto and shared with insurers, benefits administrators, and potentially other third parties. This data is highly sensitive and its exposure could have serious personal consequences.
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we may use this information to make it easier for you to find the people you want to send payments to, for account and identity verification and fraud prevention purposes, to reduce the risk you will send payments to the wrong person, or to provide other personalized services.
"Employer may upload content or information through the Platform, such as files, employment documents, messages, and personal information about Members or Administrators... Member Accounts will enable Members to enter, modify, or delete personal information (e.g. bank account or withholding information); upload, view, access, modify and/or download certain documents and information associated with or provided by Employer via the Employer Account (e.g. Form W-4 or an offer letter from Employer)Excerpt from Gusto's Privacy Policy
Processing of health and benefits data raises potential HIPAA obligations if Gusto qualifies as a business associate, as well as CCPA/CPRA sensitive personal information requirements.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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The clause establishes a dual data management structure where both employers and individual members have upload and access capabilities within the platform, creating a shared data repository that supports payroll, tax, and benefits administration workflows.
Your health and medical benefit information is processed by Gusto and shared with insurers, benefits administrators, and potentially other third parties. This data is highly sensitive and its exposure could have serious personal consequences.
ConductAtlas has identified this type of provision across 279 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Gusto.