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 provision defines the scope of sensitive data collection practices authorized under the agreement. This establishes the baseline data categories that Gusto's systems process as part of service delivery, which carries operational implications for data security, retention, and downstream handling obligations.
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 →Developers who build integrations with Gusto's API are now required to resolve any disputes with Gusto through mandatory individual binding arbitration rather than pursuing class action lawsuits, which may limit their legal remedies and transparency into disputes with Gusto. Additionally, Gusto explicitly reserves the right to modify, restrict, or discontinue its developer tools and API access at any time without notice or liability, meaning developers could lose access to critical platform capabilities that their business depends on without warning or recourse. Developers should review Section 19 of these terms carefully and consider whether the arbitration requirements and lack of access guarantees are acceptable before continuing to build on the Gusto API.
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 →Users operating under these terms authorize Gusto to collect and maintain sensitive personal information spanning government identification, financial records, health data, and employment history. The provision establishes that this collection occurs as a standard component of service use rather than as an optional practice.
How other platforms handle this
We collect information you provide, information we get when you use our services, and information we get from third parties. Information you provide: your username, password, email address, phone number, name, birthday, and profile information... Information from the phone book on your device if you...
We collect information you provide directly to us, such as when you create an account, use our Services, make a purchase, or contact us for support. The types of information we may collect include your name, email address, password, phone number, credit card and other payment information, and any ot...
We collect information about you from a variety of sources, including information you provide directly to us, information collected automatically from your devices and use of our Services, and information from other sources. The types of personal information we collect include: Identifiers such as n...
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"We collect personal information from you when you visit our websites, use our Services, or interact with us. The personal information we collect may include: contact information such as name, email address, mailing address, and phone number; government-issued identification information including Social Security Numbers (SSN) and Employer Identification Numbers (EIN); financial information including bank account and routing numbers, payroll data, and tax information; health and benefits information; and employment-related information such as job title, salary, and employment history.— Excerpt from Gusto's Gusto Privacy Policy
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The provision defines the scope of sensitive data collection practices authorized under the agreement. This establishes the baseline data categories that Gusto's systems process as part of service delivery, which carries operational implications for data security, retention, and downstream handling obligations.
Users operating under these terms authorize Gusto to collect and maintain sensitive personal information spanning government identification, financial records, health data, and employment history. The provision establishes that this collection occurs as a standard component of service use rather than as an optional practice.
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