Section 24 of the Employer Terms requires all disputes between Employer and Gusto to be resolved through final, binding individual arbitration, and the Employer waives the right to bring or participate in class action lawsuits or jury trials.
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
This provision requires disputes to proceed through individual binding arbitration rather than court proceedings, and precludes class action participation. The terms provide a 30-day opt-out window from first acceptance, after which the arbitration obligation applies to ongoing use of the platform.
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 →Language changed from generic 'You and Gusto' to specific 'Employer and Gusto', removed reference to American Arbitration Association rules, and added explicit notice format with enumerated understanding points.
View full change record →Under this clause, the agreement requires Employers to resolve claims against Gusto through individual arbitration and waives participation in class-action litigation. Employers who do not submit a written opt-out notice within 30 days of first accepting the terms will be subject to these arbitration and waiver provisions for the duration of their platform use.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"ARBITRATION NOTICE: SECTION 24 OF THESE TERMS CONTAIN TERMS THAT REQUIRE EMPLOYER AND GUSTO TO RESOLVE DISPUTES THROUGH FINAL, BINDING ARBITRATION. EMPLOYER UNDERSTANDS THAT: (1) EMPLOYER WILL ONLY BE PERMITTED TO PURSUE CLAIMS AND SEEK RELIEF AGAINST GUSTO ON AN INDIVIDUAL BASIS, AND (2) EMPLOYER WAIVES THE RIGHT TO PARTICIPATE IN A CLASS-ACTION LAWSUIT OR SEEK RELIEF IN A COURT OF LAW AND HAVE A JURY TRIAL OF EMPLOYER'S CLAIMS.Excerpt from Gusto's Terms of Service
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Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
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This provision requires disputes to proceed through individual binding arbitration rather than court proceedings, and precludes class action participation. The terms provide a 30-day opt-out window from first acceptance, after which the arbitration obligation applies to ongoing use of the platform.
Under this clause, the agreement requires Employers to resolve claims against Gusto through individual arbitration and waives participation in class-action litigation. Employers who do not submit a written opt-out notice within 30 days of first accepting the terms will be subject to these arbitration and waiver provisions for the duration of their platform use.
ConductAtlas has identified this type of provision across 205 platforms. See the full comparison.
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