Gusto updated their Background Checks Terms of Service to Version 7.0, effective April 29, 2026. The update adds detailed language clarifying that the Background Check Customer Agreement is a legally binding contract between the employer (Customer) and Gusto, and that by initiating a background check or using the service, the customer agrees to be bound by its terms. This matters because employers using Gusto's background check service now have more explicitly defined legal obligations, including a clear acknowledgment that the person signing on behalf of their company has authority to bind the business.
Employers using Gusto's background check service are now subject to a more explicitly defined legally binding agreement that covers the terms under which background checks are conducted through Checkr. The update makes clear that simply initiating a background check constitutes acceptance of the full Background Check Customer Agreement, including Checkr's own Service Terms. You can review the updated Background Check Terms at gusto.com/about/terms and the Checkr Service Terms at checkr.com/customer-agreement before initiating any new background checks.
If your company uses Gusto to run background checks, you are now formally agreeing to a legal contract just by starting a background check — not just by signing a separate document.
Whoever clicks to accept these terms on behalf of your company must actually have legal authority to do so — and by accepting, they are confirming that they do.
+ 2 more obligation changes. Full breakdown available with Watcher.
Unlock — $9.99/mo →Employers using Gusto's background check feature are now subject to a formally defined legally binding agreement that incorporates Checkr's separate terms by reference, increasing contractual complexity and compliance obligations. Failure to ensure the correct authorized signatory accepts these terms could expose organizations to contract enforceability issues.
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 9 significant changes.
4 of Gusto's significant changes have been classified as negative for consumers.
Customers are now explicitly bound by the Background Check Customer Agreement upon initiating a background check, checking an acceptance box, or accessing the service — no separate signature required.
The person accepting terms on behalf of a company must warrant they have authority to bind the organization, creating personal representation liability.
Checkr's Service Terms are now formally incorporated by reference into the binding agreement, expanding the contractual obligations employers must comply with.
ConductAtlas Policy Archive Entity: Gusto | Document: Gusto Terms of Service | Record: CA-C-000766 Captured: 2026-05-01 06:27:08 UTC URL: https://conductatlas.com/change/2026-05-01-gusto-gusto-terms-of-service-766/ Accessed: May 2, 2026
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Gusto has released Background Check Terms v7.0, effective April 29, 2026, adding 75 sentences of new contract language that formally constitutes the 'Background Check Customer Agreement' as a legally binding instrument between Gusto and employer-Customers. The update explicitly binds customers upon initiating a background check, checking an acceptance box, or accessing the service. It incorporates Checkr's Service Terms by reference and requires that the person signing has authority to bind the organization. Organizations using Gusto for background checks must ensure their authorized signatories are aware of the updated terms and that internal vendor management records reflect this contract version change. Action is required to update vendor contract records and confirm signatory authority.
1. FCRA (Fair Credit Reporting Act, 15 U.S.C. §1681 et seq.) — Background check services are squarely within FCRA's scope; employer obligations as 'users' of consumer reports under 15 U.S.C. §1681b(b) are implicated by this terms update, particularly disclosure and authorization requirements.
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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-000766.
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