Gusto added a new set of terms called 'Gusto Business Compliance Terms of Service' (GBC Terms) to their legal documents on April 26, 2026. These terms govern a new paid service that helps businesses handle state and local compliance registrations, filings, and ongoing compliance support. This matters because businesses using Gusto should be aware that accessing the GBC Service means agreeing to these additional terms, which incorporate the mandatory arbitration and class action waiver from the Employer Terms.
Gusto has introduced a new paid service called the Gusto Business Compliance Service, which handles state and local compliance registrations and filings for businesses. By accessing or using this service, business owners agree to new additional terms that include mandatory arbitration and a class action waiver carried over from the Employer Terms. You can review the full Gusto Business Compliance Terms of Service (effective April 24, 2026) on Gusto's legal page before opting into the service.
If you use Gusto's new compliance service and have a dispute, you must use arbitration and cannot join a class action lawsuit.
The Gusto Business Compliance Service is a paid add-on, and using it means agreeing to a separate fee-based contract.
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Unlock — $9.99/mo →Businesses using Gusto should know that the new compliance service is a paid add-on with its own binding legal terms, including mandatory arbitration. Agreeing to use the GBC Service means waiving the right to participate in class action lawsuits related to that service.
ConductAtlas has recorded 4 material changes to this document (since April 2026). An additional minor or cosmetic changes were excluded.
Across all monitored documents, Gusto has made 6 significant changes.
2 of Gusto's significant changes have been classified as negative for consumers.
A new paid service agreement governing state and local compliance registrations and filings was added, creating new contractual obligations for businesses that opt in.
The Employer Terms' mandatory arbitration provision and class action waiver are expressly incorporated into the GBC Terms with full effect, extending these restrictions to the new compliance service.
In any conflict between the GBC Terms and the Employer Terms, the GBC Terms control with respect to the GBC Service.
ConductAtlas Policy Archive Entity: Gusto | Document: Gusto Privacy Policy | Record: CA-C-000681 Captured: 2026-04-26 06:26:16 UTC URL: https://conductatlas.com/change/2026-04-26-gusto-gusto-privacy-policy-681/ Accessed: May 2, 2026
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On April 26, 2026, Gusto added the 'Gusto Business Compliance Terms of Service' (GBC Terms, v2.0, effective April 24, 2026) to its contract suite. This creates a new paid service tier for state/local compliance registrations and filings, governed by supplemental terms that supersede the Employer Terms in case of conflict. The GBC Terms incorporate the Employer Terms' mandatory arbitration provision and class action waiver with full effect. Any organization with Gusto in its vendor stack that uses or contemplates using the GBC Service must review whether existing DPAs, vendor contracts, and internal procurement approvals cover this new service scope. Action is required for procurement and legal review before GBC Service adoption.
1. FTC Act Section 5 (Unfair or Deceptive Acts or Practices): New paid service terms must be clearly disclosed; mandatory arbitration and class action waiver incorporated by reference warrant scrutiny for adequate notice.
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ConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-000681.
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🔒 Unlock full diff — Watcher $9.99/moGusto updated their privacy policy on May 1, 2026, making 243 additions and 137 modifications across a large document. The …
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