Gusto's policy indicates it may collect biometric information, which could include fingerprints or facial recognition data, as part of its HR or time-tracking services.
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
Biometric data collection has distinct regulatory requirements under laws like BIPA (Biometric Information Privacy Act) in certain jurisdictions. The provision's operational significance lies in establishing the lawful basis and scope for processing this category of sensitive personal information within Gusto's service delivery model.
The updated Privacy Policy now explicitly states it covers retirement account management (401k, SEP IRA, IRA accounts) and adds Stripe alongside Plaid as a third-party service provider that collects financial institution data. The policy restructures how it describes Gusto's role in different contexts: when Gusto acts as a service provider processing payroll or other data on behalf of employers, when it acts as an employer itself, or when it operates as a co-employer under a professional organization (PEO) arrangement, with separate privacy notices applying in each case. The policy introduces a new commitment that de-identified data will not be re-identified except to verify compliance with applicable law. If you connect a bank account through Stripe, that data will be treated under Stripe's Privacy Policy, which you should review separately.
View change record →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.
View change record →The updated terms now explicitly state that employers accept mandatory individual arbitration and waive the right to participate in class-action lawsuits or pursue relief in court with a jury trial. This significantly limits employers' ability to challenge Gusto's practices collectively or seek resolution through the court system. Any disputes employers have with Gusto must be resolved individually through arbitration, which typically involves private, binding proceedings with limited appeal options and discovery rights compared to court litigation.
View change record →Removal of this high-severity provision eliminates transparency about biometric data practices, potentially indicating either that biometric collection has been discontinued or that disclosure obligations have been de-emphasized.
View full change record →The collection of biometric data by Gusto creates heightened privacy risks as this data is permanent and irrevocable. Users in states with biometric privacy laws such as Illinois (BIPA) should be aware of their specific rights and consent requirements.
How other platforms handle this
"By clicking 'Next', you are indicating that you have read and agree to the TERMS OF USE AND PRIVACY POLICY"
We automatically collect certain information from your device, including information about your web browser, IP address, time zone, and some of the cookies that are installed on your device. Additionally, as you browse the Service, we collect information about the individual web pages or products th...
Location data. Data about your device's location, which can be either precise or imprecise. For example, we collect location data using Global Navigation Satellite System (GNSS) (e.g., GPS) and data about nearby cell towers and Wi-Fi hotspots. Location can also be inferred from a device's IP address...
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Biometric data collection implicates Illinois BIPA, Texas CUBI, Washington's biometric privacy law, and CCPA/CPRA's sensitive personal information category. Compliance teams must ensure informed written consent, retention schedules, destruction protocols, and prohibition on sale of biometric identifiers are in place. BIPA carries a private right of action with statutory damages.
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Biometric data collection has distinct regulatory requirements under laws like BIPA (Biometric Information Privacy Act) in certain jurisdictions. The provision's operational significance lies in establishing the lawful basis and scope for processing this category of sensitive personal information within Gusto's service delivery model.
The collection of biometric data by Gusto creates heightened privacy risks as this data is permanent and irrevocable. Users in states with biometric privacy laws such as Illinois (BIPA) should be aware of their specific rights and consent requirements.
ConductAtlas has identified this type of provision across 21 platforms. See the full comparison.
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