Employee Background Check Laws in Alaska

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., establishes the national baseline for background check procedures. Under the FCRA, all employers must obtain clear written consent from a job applicant before obtaining a consumer report (background check) for employment purposes. The consent must be on a standalone document that clearly discloses the employer's intent to conduct a background check.

Before denying employment based on information in a background report, employers must provide the applicant with an adverse action notice that includes a copy of the report and a summary of the applicant's rights under the FCRA. The applicant then has an opportunity to dispute inaccurate information with the background check company (called a consumer reporting agency) within 30 days. If the employer proceeds with the denial, a final adverse action notice must be provided.

The FCRA also prohibits the use of certain information, such as convictions older than seven years (with limited exceptions for positions paying over $75,000 annually), bankruptcies older than ten years, and medical information. Employers must comply with the Equal Employment Opportunity Commission (EEOC) guidance on background checks, which prohibits using conviction history in a way that has a disparate impact on protected classes. Violations can result in civil liability, including actual damages, statutory damages up to $1,000, attorney's fees, and punitive damages up to $1,000 per violation.

Alaska does not have a state-specific background check statute that imposes requirements beyond the federal Fair Credit Reporting Act. However, Alaska employers are fully subject to the FCRA and must comply with all federal disclosure, consent, and adverse action requirements.

Because Alaska lacks its own background check law, state employers have no additional burdens beyond FCRA compliance but also cannot rely on state law for any narrower or more employer-friendly rules. All Alaska employers, regardless of size, must follow FCRA procedures when conducting background checks. There is no state exemption for small employers.

Alaska does have general anti-discrimination laws under Alaska Statute § 18.80.010 (Alaska Human Rights Act), which prohibits employment discrimination based on race, color, religion, national origin, age, sex, disability, and other protected statuses. These laws apply to all employers with one or more employees. While the Human Rights Act does not specifically address background checks, it operates alongside the FCRA to prevent employers from using background check information in a discriminatory manner. For example, if a background check policy has a disparate impact on a protected class (such as using blanket conviction exclusions that disproportionately affect racial minorities), the employer may be liable under both the FCRA and Alaska's Human Rights Act.

Alaska employers may not use background checks to screen out applicants based on protected characteristics, and they must apply background check policies uniformly. The state does not have a "ban the box" law limiting when background checks can be conducted in the hiring process, so employers retain discretion over timing of background checks under federal law.

Alaska employers have limited exceptions to background check requirements under the FCRA. First, if an applicant is applying for a position that falls under a federal statute requiring background checks—such as certain transportation, financial, or government-related roles—the employer must comply with those specific federal requirements rather than the general FCRA process.

Second, the FCRA does not apply to background checks conducted by employers on their own employees or by employers who conduct the background check in-house without using a third-party consumer reporting agency. However, if an employer hires a third party to conduct the check, the FCRA applies. Additionally, the FCRA permits employers to exclude certain criminal convictions from consideration if state law prohibits their use, though Alaska law does not expressly restrict conviction-based screening.

Third, employers may rely on an applicant's voluntary disclosure during the application process and do not need to conduct a background check if they receive sufficient information from the applicant themselves. Fourth, the FCRA contains exceptions for positions in law enforcement, national defense, and security-sensitive roles, which may allow broader background checks without the same statutory protections.

Fifth, the FCRA's 7-year lookback rule does not apply to positions paying over $75,000 annually, where employers may consider older convictions. However, even for high-paying positions, employers must still obtain consent, provide adverse action notice, and comply with anti-discrimination laws. Alaska's at-will employment doctrine does not create an exception to FCRA requirements; employers cannot simply refuse to hire applicants without following proper notice procedures if a background check was obtained.

Step 1: Document Everything. Keep copies of the written consent form signed by the applicant before any background check is requested. Retain the actual background report received from the third-party agency, correspondence about adverse action notices, and any dispute letters or communications with the applicant regarding inaccuracies. Document the dates when notices were sent and any responses from the applicant. If a hiring decision was made, record the date and the stated reason. Maintain this documentation for at least one year, as the FCRA requires employers to preserve records of compliance.

Step 2: Internal Complaint and Documentation. If you discover that your employer has not obtained consent before running a background check on you, or if you received no adverse action notice before a job offer was withdrawn based on a background report, immediately request written explanation from the human resources department. Ask them to provide copies of the consent form you allegedly signed and any adverse action notices sent. Request the names of any third-party background check company used. Document the date and time of your request and the response received. If your employer refuses to provide this documentation, that itself is evidence of FCRA violation.

Step 3: File a Complaint with the Federal Trade Commission (FTC) or EEOC. The FTC enforces the FCRA and accepts complaints at https://reportfraud.ftc.gov. Include your name, contact information, the employer's name and address, dates when the background check was conducted, and a detailed explanation of how the employer violated the FCRA (e.g., no written consent, no adverse action notice, or use of outdated conviction information). Alternatively, if you believe the background check violation is tied to discrimination based on race, color, religion, national origin, age, sex, or disability, file a charge with the EEOC at https://www.eeoc.gov/filing-charge-discrimination or with the Alaska Human Rights Commission at https://humanrights.alaska.gov. The deadline to file with the EEOC is 300 days from the violation in Alaska (a deferral state where the state agency has first authority). Provide all documentation, including emails, consent forms, and adverse action notices.

Step 4: Investigation and Agency Response. The FTC will review your complaint and may conduct an investigation into the employer's background check practices. If multiple complaints are filed, the FTC may initiate an enforcement action. The EEOC or Alaska Human Rights Commission will investigate within 180 days and issue a determination or right-to-sue letter. During investigation, the employer may be asked to produce consent forms, adverse action notices, and business records. The investigation typically takes 4–6 months. You will be notified of findings and given an opportunity to respond to the employer's statements.

Step 5: Consult an Attorney and Pursue Remedies. If the agency investigation supports your claim, you may pursue a private lawsuit against the employer for FCRA violations. Consult an employment attorney licensed in Alaska who has experience with FCRA claims. Private FCRA lawsuits can be brought individually or as a class action and do not require administrative exhaustion in some circumstances. An attorney can demand damages including actual damages (lost wages, emotional distress), statutory damages of $100–$1,000 per violation, attorney's fees, and court costs. If discrimination was involved, additional remedies under the Alaska Human Rights Act may be available, including back pay, front pay, reinstatement, and emotional distress damages.