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
Gusto can take severe financial and contractual actions—including freezing funds and ending the Agreement without notice—based on its own determination regarding OFAC status.
Interpretive note: The canonical claim captures both enumerated Gusto actions (hold and termination) because they arise from a single trigger condition and are closely related. The excerpt uses ellipses around 'determines' which may indicate additional conditions not quoted; confidence remains high for what is explicitly stated.
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 →If Gusto determines you or any of your Administrators are a Specially Designated National, Gusto may freeze your bank account or funds or terminate the Agreement immediately and without notice.
How other platforms handle this
you will not access or use our Services in any manner that would cause us or you to violate any U.S. or international embargoes, economic sanctions, or export controls laws or regulations.
You must comply with all domestic and international export laws and regulations that apply to the software and/or Services, which include restrictions on destinations, end users, and end use.
the Services may not be exported or re-exported (a) into any United States embargoed countries, or (b) to anyone on the U.S. Treasury Department's list of Specially Designated Nationals or the U.S. Department of Commerce's Denied Person's List...
"Gusto may institute a hold on Employer's Bank Account or funds, or terminate this Agreement immediately without notice, if Gusto determines...that Employer or any of Employer's Administrators are a Specially Designated National...Excerpt from Gusto's Terms of Service
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.
Gusto can take severe financial and contractual actions—including freezing funds and ending the Agreement without notice—based on its own determination regarding OFAC status.
If Gusto determines you or any of your Administrators are a Specially Designated National, Gusto may freeze your bank account or funds or terminate the Agreement immediately and without notice.
ConductAtlas has identified this type of provision across 182 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Gusto.