The agreement incorporates Gusto's Acceptable Use Policy by reference, making it a binding component of the overall agreement alongside the Employer Terms and any applicable Additional Terms.
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 Acceptable Use Policy is incorporated as a binding contractual term, meaning violations of that policy constitute breaches of the overall agreement and may trigger enforcement actions including account suspension or termination.
The updated terms make explicit that requesting a background check through Gusto creates a legally binding agreement not just with Gusto but also incorporating terms from Gusto's payroll service and Checkr's service agreement. This means customers are committing to multiple overlapping sets of terms when they initiate a background check request. The change does not appear to alter the substantive rights or obligations, but rather clarifies their scope and binding nature in writing.
View change record →Developers integrating with Gusto's platform are now bound by mandatory arbitration and class action waiver provisions, meaning they cannot join or file class actions against Gusto and must resolve disputes through individual, binding arbitration. The updated terms also grant Gusto the right to modify, update, or discontinue developer tools at its sole discretion without notice or liability, which could disrupt integrations and require developers to absorb costs of upgrading to new versions. Developers should review Section 19 of the updated terms carefully before creating or maintaining integrations with Gusto's platform, and consider whether the arbitration and modification provisions align with their business and legal risk tolerance.
View change record →The updated terms now explicitly state that Employers waive the right to participate in class-action lawsuits and must pursue all claims against Gusto on an individual basis through binding arbitration. This means Employers can no longer join other users in collective legal action, even if many face identical problems with Gusto's service or billing. Individual arbitration typically costs more and produces less leverage for individual plaintiffs than class actions. You should review whether this dispute resolution requirement aligns with your business needs and consult legal counsel if you have concerns about waiving class-action rights.
View change record →This provision incorporates an external Acceptable Use Policy by reference, potentially binding employers to requirements not fully detailed in the main terms.
View full change record →Under this clause, the agreement binds Employers to the Acceptable Use Policy as a component of the overall contract. Conduct prohibited under the Acceptable Use Policy may result in account suspension, termination, or other enforcement measures available to Gusto under the agreement.
How other platforms handle this
In addition to these Terms, you also agree to: Our Acceptable Use Policy ("AUP"): https://legal.kajabi.com/policies/aup
Your use of the Llama Materials must comply with applicable laws and regulations (including trade compliance laws and regulations) and adhere to the Acceptable Use Policy for the Llama 3 models (currently available at https://llama.meta.com/llama3/use-policy), which is hereby incorporated by referen...
You agree not to post, upload, publish, submit or transmit any content that: (i) infringes, misappropriates or violates a third party's patent, copyright, trademark, trade secret, moral rights or other intellectual property rights, or rights of publicity or privacy; (ii) violates, or encourages any ...
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"By accessing or using the Platform, including any Services, Employer agrees to be bound by these Terms, any Additional Terms specific to Services that Employer accesses or uses, and our Acceptable Use Policy (collectively, this "Agreement").— Excerpt from Gusto's Gusto Terms of Service
1. REGULATORY LANDSCAPE: Acceptable Use Policies that restrict specific categories of use may interact with state and federal laws governing employer access to HR and payroll services. Where the Acceptable Use Policy restricts data use in ways that affect employee rights or data portability, state labor and privacy laws may be relevant. 2. GOVERNANCE EXPOSURE: Low to Medium. The incorporation of the Acceptable Use Policy by reference means that changes to that policy may affect the overall agreement's scope without a formal amendment process to the Employer Terms, depending on the change notification provisions. 3. JURISDICTION FLAGS: No specific jurisdiction-based heightened exposure is apparent from this provision alone; exposure depends on the specific content of the Acceptable Use Policy at gusto.com/legal/terms/acceptable-use. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should review the current Acceptable Use Policy at the time of contract execution and establish a process to monitor for updates, particularly given that changes to incorporated policies may modify the overall agreement's terms. 5. COMPLIANCE CONSIDERATIONS: Legal teams should review the Acceptable Use Policy in conjunction with the Employer Terms and document any use-case restrictions that may affect the organization's intended use of the Gusto platform, including API access, third-party integrations, and data export practices.
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The Acceptable Use Policy is incorporated as a binding contractual term, meaning violations of that policy constitute breaches of the overall agreement and may trigger enforcement actions including account suspension or termination.
Under this clause, the agreement binds Employers to the Acceptable Use Policy as a component of the overall contract. Conduct prohibited under the Acceptable Use Policy may result in account suspension, termination, or other enforcement measures available to Gusto under the agreement.
ConductAtlas has identified this type of provision across 16 platforms. See the full comparison.
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