diff --git a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidation.cs b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs
similarity index 92%
rename from src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidation.cs
rename to src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs
index c74cd2de5f..c36c992c39 100644
--- a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidation.cs
+++ b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs
@@ -25,11 +25,6 @@ public class InviteUsersValidator(
 {
     public async Task<ValidationResult<InviteUserOrganizationValidationRequest>> ValidateAsync(InviteUserOrganizationValidationRequest request)
     {
-        if (ValidateEnvironment(globalSettings) is Invalid<IGlobalSettings> invalidEnvironment)
-        {
-            return invalidEnvironment.Map(request);
-        }
-
         var organizationValidationResult = InvitingUserOrganizationValidator.Validate(request.InviteOrganization);
 
         if (organizationValidationResult is Invalid<InviteOrganization> organizationValidation)
@@ -45,6 +40,11 @@ public class InviteUsersValidator(
             return invalidSubscriptionUpdate.Map(request);
         }
 
+        if (ValidateEnvironment(globalSettings, passwordManagerValidationResult as Valid<PasswordManagerSubscriptionUpdate>) is Invalid<IGlobalSettings> invalidEnvironment)
+        {
+            return invalidEnvironment.Map(request);
+        }
+
         var smSubscriptionUpdate = new SecretsManagerSubscriptionUpdate(request, subscriptionUpdate);
         var secretsManagerValidationResult = SecretsManagerInviteUserValidation.Validate(smSubscriptionUpdate);
 
@@ -81,8 +81,8 @@ public class InviteUsersValidator(
             smSubscriptionUpdate));
     }
 
-    public static ValidationResult<IGlobalSettings> ValidateEnvironment(IGlobalSettings globalSettings) =>
-        globalSettings.SelfHosted
+    public static ValidationResult<IGlobalSettings> ValidateEnvironment(IGlobalSettings globalSettings, Valid<PasswordManagerSubscriptionUpdate> subscriptionUpdate) =>
+        globalSettings.SelfHosted && subscriptionUpdate?.Value.AdditionalSeats > 0
             ? new Invalid<IGlobalSettings>(new CannotAutoScaleOnSelfHostError(globalSettings))
             : new Valid<IGlobalSettings>(globalSettings);
 }
diff --git a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/PasswordManager/PasswordManagerInviteUserValidator.cs b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/PasswordManager/PasswordManagerInviteUserValidator.cs
index b3346aebf8..4d6940c6c7 100644
--- a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/PasswordManager/PasswordManagerInviteUserValidator.cs
+++ b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/PasswordManager/PasswordManagerInviteUserValidator.cs
@@ -4,7 +4,11 @@ namespace Bit.Core.AdminConsole.OrganizationFeatures.OrganizationUsers.InviteUse
 
 public static class PasswordManagerInviteUserValidator
 {
-    // NOTE This is only for validating adding users to an organization, not removing
+    /// <summary>
+    /// This is for validating if the organization can add additional users.
+    /// </summary>
+    /// <param name="subscriptionUpdate"></param>
+    /// <returns></returns>
     public static ValidationResult<PasswordManagerSubscriptionUpdate> Validate(PasswordManagerSubscriptionUpdate subscriptionUpdate)
     {
         if (subscriptionUpdate.Seats is null)