Employee Background Check Laws in Arizona

The Fair Credit Reporting Act (FCRA), 15 U.S.C. section 1681 et seq., is the primary federal law regulating background checks for employment. The EEOC enforces the FCRA through the Consumer Financial Protection Bureau and the Federal Trade Commission. Under the FCRA, employers using third-party background screening companies (consumer reporting agencies) must: (1) obtain clear, written authorization from the applicant on a separate document, (2) provide notice of adverse action before taking action based on the report, (3) allow the applicant to dispute the accuracy of information, and (4) comply with accuracy and fairness standards when using reports.

The law covers all employers using consumer reports, regardless of size. If an employer takes adverse action (denial of employment, termination, etc.) based wholly or partly on information in a background report, they must provide the applicant a copy of the report and a summary of rights before the adverse action becomes final. The applicant has 30 days to dispute the accuracy of the report with the background agency. Employers cannot use reports to discriminate based on race, color, religion, sex, national origin, age, or disability under Title VII and other civil rights laws.

Arizona law adds specific state-level requirements on top of federal FCRA requirements. Arizona Revised Statutes section 34-226 requires that any employer who procures a background check on a job applicant must: (1) obtain written consent from the applicant, (2) ensure the consent is provided on a separate document that is clear and conspicuous and specifically refers to the background check authorization (not embedded in an employment application or other multi-purpose form), and (3) provide the applicant a copy of the disclosure.

Arizona's standard is stricter than the federal baseline because the state requires the disclosure to stand alone as a separate document. This means employers cannot include background check authorization as one checkbox among many items on a job application form—it must be a distinct document focused solely on background check authorization.

Arizona Revised Statutes section 13-905 provides additional protection by prohibiting employers from inquiring about (or using) sealed, dismissed, or expunged criminal convictions. This applies to all employers in Arizona regardless of employee count. An applicant with a sealed or dismissed conviction may answer that the conviction did not occur and cannot be penalized for non-disclosure. This is more employee-protective than federal law, which allows employers to ask about some arrests and convictions depending on circumstances.

Arizona also requires that before an employer takes adverse action based on a background report, the employer must follow FCRA notice procedures: provide the applicant a copy of the report, explain the employer's intent to take action, allow a dispute period (typically 5-10 days), and allow the applicant to submit explanations or corrections. Arizona employers must also comply with federal adverse action notice requirements. The state does not have a separate private right of action for violations of section 34-226, so enforcement occurs through FCRA claims or state consumer protection laws.

Background checks are permitted if authorized by law or required by regulation (e.g., financial services, healthcare). Employers can use background checks for legitimate business reasons including public safety and nature of the job. However, employers cannot use background checks to intentionally discriminate based on protected classes under federal or state law. Sealed, dismissed, or expunged convictions are protected under Arizona law—employers cannot ask about them or use them, even if the information appears in a background report.

Employers may have a legitimate business reason to exclude applicants with certain criminal convictions if the offense directly relates to the job (e.g., violent offenses for positions with unsupervised contact with children). However, employers must assess the nature and seriousness of the offense, the time elapsed, and the job requirements individually—blanket policies excluding all applicants with criminal histories may violate Arizona law and federal civil rights law.

Background checks conducted by internal HR staff (not through a consumer reporting agency) may not trigger FCRA requirements, but Arizona Revised Statutes section 34-226 still requires written consent and separate disclosure. If an employer uses a third-party background screening company, both FCRA and Arizona state requirements apply. Employers are not required to conduct background checks; they are permitted to do so if they follow the legal procedures. Self-employed individuals and independent contractors do not have the same rights as job applicants, though FCRA requirements may still apply if a consumer report is used.

Step 1: Document everything related to the background check process. Keep a copy of the job posting, your job application, the separate background check authorization form you signed, confirmation that you provided consent, any emails or communications about the background check, and the date you applied. Request a copy of the background report used about you; most agencies allow free reports once per year. Photograph or scan documents that prove you did not receive a separate disclosure or that the disclosure was combined with other forms.

Step 2: Attempt an internal complaint process if the employer is still accessible to you. Send a written email or letter to the employer's HR department documenting the violation: specifically state that you were not provided a separate background check disclosure document under Arizona Revised Statutes section 34-226, or that a background check was conducted without written consent. Request a written response within 10 business days. Keep a copy of your complaint and any response. This step creates a paper trail and sometimes prompts quick resolution without litigation.

Step 3: File a complaint with the appropriate agency or pursue a private action under the FCRA. You have options: (1) File with the Federal Trade Commission (FTC) at reportidentitytheft.ftc.gov for FCRA violations, though FTC does not typically pursue individual employment cases. (2) File with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint for FCRA violations. (3) Contact the Arizona Attorney General's Consumer Protection Division at (602) 542-5763 or azag.gov if you believe the employer violated Arizona Revised Statutes section 34-226. (4) File a private lawsuit under 15 U.S.C. section 1681 in Arizona federal court (US District Court for Arizona) or state court. The deadline to file an FCRA claim is 3 years from the violation. For Arizona section 34-226 violations, there is a 2-year statute of limitations under general contract/consumer protection law. When filing, provide: copies of the job application, proof of the background check disclosure (or lack thereof), dates of application and background check, names of decision-makers, and any adverse action notice received.

Step 4: Expect investigation processes to vary by agency. If you file with the FTC or CFPB, expect a 30-60 day acknowledgment and potential assignment to a regional office. The FTC will investigate patterns of violations but may not pursue single-incident claims. The Arizona Attorney General may open a consumer protection investigation if multiple complaints are filed. If you file a private FCRA lawsuit, the employer will have 21 days to respond, discovery will occur over 6 months, and litigation typically takes 12-24 months. Background check companies (consumer reporting agencies) also may be named as co-defendants for negligence, inaccuracy, or failure to provide dispute procedures.

Step 5: Consult an employment attorney after Step 3 if the employer ignored your internal complaint or if you intend to file a lawsuit. An employment lawyer can file a federal court action under the FCRA and Arizona state law. You may be entitled to statutory damages of $100-$1,000 per FCRA violation, actual damages (lost wages, emotional distress), punitive damages if the violation was willful, and attorney's fees. Many employment attorneys offer free initial consultations and work on contingency. Contact the State Bar of Arizona (602-252-4804) or visit azbar.org for attorney referrals.