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
Employers who pay Service Fees cannot recover those payments as a matter of right, making every payment a financial commitment with no default return path.
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 →You are not entitled to a refund of any Service Fees paid unless Gusto expressly states a refund is available.
How other platforms handle this
The Payroll Service Fees are 23% of the Bill Rate.
Realms is a subscription service and the cost is as detailed on the applicable purchase pages and / or platform at the time of purchase
All fees and other amounts payable to Whatnot are exclusive of any applicable sales taxes, and you are responsible for paying any applicable sales taxes in addition to such fees or other amounts.
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"Unless we state otherwise, all Service Fees are non-refundable.— Excerpt from Gusto's Gusto Terms of Service
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Employers who pay Service Fees cannot recover those payments as a matter of right, making every payment a financial commitment with no default return path.
You are not entitled to a refund of any Service Fees paid unless Gusto expressly states a refund is available.
ConductAtlas has identified this type of provision across 233 platforms. See the full comparison.
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