Gusto collects highly sensitive data including Social Security numbers, bank account numbers, health and medical information, biometric data, and immigration status as part of its payroll and HR 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
The clause establishes Gusto's authority to collect sensitive personal data from employers as a condition of account setup and ongoing service delivery, with collection scope determined by Gusto in its sole discretion. This operational requirement enables identity verification and due diligence processes that Gusto deems necessary for account management.
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 →Your most sensitive personal information is stored by Gusto and could be at risk if shared inappropriately or exposed in a data breach. This data is used for payroll processing, benefits administration, and tax filing.
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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"Gusto will require Employer to provide certain information to us from time to time, but in particular during onboarding of the Employer Account, to help us verify Employer's business entity information, the identity of Employer's Administrators and signatory, and perform other additional due diligence as we may deem necessary in our sole discretion. This information may include (but is not limited to) full name, address, date of birth, Employer taxpayer ID, telephone number, email address, business entity ownership documentation, and other information that will allow us to identify Employer, Employer's signatory, and/or Employer's Administrators.— Excerpt from Gusto's Gusto Privacy Policy
Collection of SSNs, financial account data, biometric identifiers, and health information triggers heightened obligations under CCPA/CPRA's sensitive personal information provisions, HIPAA (for health data), and applicable state laws. Data processing agreements and security controls must be reviewed.
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The clause establishes Gusto's authority to collect sensitive personal data from employers as a condition of account setup and ongoing service delivery, with collection scope determined by Gusto in its sole discretion. This operational requirement enables identity verification and due diligence processes that Gusto deems necessary for account management.
Your most sensitive personal information is stored by Gusto and could be at risk if shared inappropriately or exposed in a data breach. This data is used for payroll processing, benefits administration, and tax filing.
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