Gusto updated its Background Checks Terms of Service on May 1, 2026, elevating it from Version 6.0 to Version 7.0 and changing the effective date to April 29, 2026. The updated terms now explicitly define the scope of the background check service, clarify that these terms are binding on customers who request or use background checks through Gusto's platform in partnership with Checkr, and establish that by checking a box, initiating a background check, or accessing the service, customers agree to be bound by the full Background Check Customer Agreement. The change adds 75 sentences of new clarifying language around definitions, authorization, and binding agreement mechanics, making the contractual relationship more explicit.
Businesses: Before using Gusto's background check service, the person clicking to agree must confirm they have the legal authority within their organization to make that commitment. This means responsibility now rests on the signatory to verify their own authority.
The updated terms make explicit that using Gusto's background check service constitutes a binding agreement. Previously, the terms of the service relationship may have been less clearly stated. Now, the agreement clarifies that an authorized signatory represents they have authority to bind the organization, and that three actions trigger binding acceptance: checking a box, initiating a background check, or accessing the service. This means employers should ensure the person clicking through has actual authority to commit the organization to the full Background Check Customer Agreement before proceeding.
→ Review the full Background Check Customer Agreement and Checkr Service Terms (https://checkr.com/customer-agreement) before the authorized signatory checks the acceptance box or initiates a background check.
→ Confirm that the individual designated as the Authorized Signatory has actual legal authority within your organization to bind the company to this agreement.
This is the 2nd significant Consent Expansion change Gusto has made since ConductAtlas began monitoring.
ConductAtlas has recorded 3 material changes to this document (since April 2026). An additional minor or cosmetic changes were excluded.
Across all monitored documents, Gusto has made 7 significant changes.
4 of Gusto's significant changes have been classified as negative for consumers.
The individual accepting these terms must represent and warrant they have authority to bind the customer organization to the entire Background Check Customer Agreement.
Checking the box presented with the terms, initiating a background check, or accessing the service each constitute acceptance of the full Background Check Customer Agreement as of the date of action.
The Checkr Service Terms are now explicitly incorporated as part of the Background Check Customer Agreement, making those terms (available at https://checkr.com/customer-agreement) binding on the customer.
This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology
Gusto's Background Checks Terms were updated to Version 7.0 effective April 29, 2026, adding 75 sentences of clarifying language around the binding nature of the service agreement. The core change is explicit definition of the …
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