Arizona Employment Screening Overview
Arizona has a moderately regulated employment screening environment with mandatory E-Verify participation for all employers and specific protections for medical marijuana cardholders during drug testing. Arizona does not restrict employer use of credit reports for employment purposes beyond federal FCRA requirements.
Employers should be aware that ban-the-box rules apply only to state agencies and certain municipalities like Phoenix and Tucson, not private employers statewide, and federal requirements along with local ordinances may still apply.
What's Permitted
- Private employers may ask about criminal history at any stage of the hiring process (no statewide ban-the-box law for private employers)
- State agencies must delay criminal history inquiries under Executive Order 2017-07; local BTB ordinances apply in Phoenix, Tucson, Tempe, Glendale, and Maricopa/Pima Counties for government hiring only
- All employers must use E-Verify for new hires, with expanded contractor requirements from January 2026
- Employers generally cannot take adverse action based solely on positive marijuana test without evidence of impairment (A.R.S. 36-2813)
- Credit checks for employment purposes are permitted subject to federal FCRA procedures
- Salary history inquiries permitted; no statewide ban exists
What's Prohibited
- Disciplining medical marijuana cardholders solely for positive test without workplace impairment (A.R.S. 36-2813)
- Failing to use E-Verify for all new hires statewide
- Asking criminal history questions on initial applications for state agency positions (EO 2017-07) and certain municipal government positions (Phoenix, Tucson, others)
Ban the Box Laws
Public Employers OnlyStatus Summary
Arizona: no statewide private-sector ban-the-box. State agencies follow Executive Order 2017-07 (no criminal-history inquiry until after an interview). Several localities have public-employer policies (e.g., Tucson; includes city contractors). Employers also must follow EEOC guidance.
Key Requirements
Fair Chance to Compete for Jobs Act (2019)
Federal contractor baseline: https://www.eeoc.gov/arrestandconviction
- Delay criminal inquiries until conditional offer
- Applies to federal contractors
- No application-stage conviction questions
- Requires compliance with federal rules
Executive Order 2017-07 (Arizona)
State executive-branch policy: https://azgovernor.gov/sites/default/files/boxeo_0...
- Applies to executive-branch state agencies
- Delay inquiry until after initial interview
- DOA establishes hiring procedures
- Exemptions for sensitive positions
State law — private employers
Status of statewide law: https://www.azleg.gov/legtext/55leg/2r/bills/sb150...
- No statewide private-employer ban-the-box
- Local ordinances may impose requirements
- EEOC guidance still applicable
- Check municipal rules where operating
Glendale municipal policy
Glendale city guidance: https://www.glendaleaz.gov/files/assets/city/v/1/c...
- No criminal questions on applications
- Background checks after conditional offer
- Seven-year conviction reporting limit
- Applies to city employment
Tucson Ban the Box ordinance
Tucson city ordinance: https://www.tucsonaz.gov/files/sharedassets/public...
- Delay questions until after screening
- Applies to city employees and contractors
- Municipal contractors may be covered
- Private employers not mandated locally
Pima County resolution
Pima County policy: https://www.pima.gov/asset/6471c660-755f-48af-a0f3...
- No criminal questions on job applications
- Background checks later in process
- Applies to county employment
- Follow FCRA and state rules
Ban the Box Best Practices for Arizona Employers
- Check local ordinances and city/county policies
- Follow EEOC individualized-assessment guidance for conviction decisions
- Comply with FCRA pre-adverse and adverse action procedures
- Train hiring staff to avoid premature criminal-history inquiries
- Document hiring decisions, exemptions, and mitigating applicant information
Salary History Ban
NoArizona — Current statewide status
As of January 2026, Arizona has no statewide salary-history ban: https://www.azleg.gov/arsDetail/?title=23 https://www.azleg.gov/legtext/57leg/1r/bills/sb119...
- No statewide salary-history prohibition
- Employers may ask prior pay
- Federal NLRA still protects wage discussions
- Equal-pay law remains separately applicable
National Labor Relations Act (NLRA)
Federal protection for employee wage discussions: https://www.nlrb.gov/about-nlrb/rights-we-protect/...
- Protects most non-supervisory employees' discussions
- Prohibits policies chilling wage conversations
- Bars retaliation for wage discussions
- Enforced by NLRB (file charges)
House Bill 2547 (2020) — citation disputed
Claimed enactment but statutory citation appears incorrect: https://www.azleg.gov/legtext/54leg/2r/bills/hb254...
- Cited statute appears incorrect
- No clear enacted salary-history ban found
- Treat enactment claims cautiously
- See bill page for details
Senate Bill 1197 (2025) — proposed
Proposes expanding protections against wage-history use: https://www.azleg.gov/legtext/57leg/1r/bills/sb119...
- Prohibits refusing hire for nondisclosure
- Defines "wage history" as prior wages
- Forbids retaliation for nondisclosure
- Introduced January 2025; not enacted
House Bill 2343 (2024) — proposed
Comprehensive past proposal to ban wage screening: https://www.azleg.gov/legtext/56leg/2r/bills/hb234...
- Proposed broad ban on wage screening
- Prohibited employers requesting prior compensation
- Included civil penalties and damages
- Did not become law
Senate Bill 1548 (2022) — proposed
Earlier comprehensive wage-history proposal: https://www.azleg.gov/legtext/55leg/2r/bills/sb154...
- Similar comprehensive wage-history proposal
- Limited employer confirmation practices
- Allowed exceptions after offer in draft
- Died in committee
Arizona Equal Pay Act (A.R.S. §23-341)
State law on sex-based pay differences: https://www.azleg.gov/arsDetail/?title=23
- Prohibits sex-based wage disparities
- Allows legitimate factor-based differences
- Does not explicitly bar prior-wage defense
- Provides remedies for pay discrimination
Salary History Best Practices for Arizona Employers
- Treat salary history requests cautiously; laws may change.
- Avoid relying on prior pay to set compensation.
- Accept voluntary salary disclosures only after a formal offer.
- Protect employees' NLRA wage-discussion rights.
- Monitor pending state bills and update policies accordingly.
Consumer Credit Checks
NoArizona permits employment credit checks but FCRA controls; A.R.S.§44‑1692 is permissive (https://www.azleg.gov/ars/44/01692.htm). Comply strictly with FCRA disclosure/authorization and adverse‑action procedures to avoid statutory/class‑action liability (https://hr.az.gov/federal-employment-laws; https://www.haleskemp.com/employers-comply-fcra/).
Key Requirements
Fair Credit Reporting Act (FCRA)
Federal law governing employment credit reports:
- Standalone written disclosure required
- Signed written authorization required
- Two-step adverse action; FTC suggests five days
- Seven-year reporting limits under $75,000
- Statutory damages $100–$1,000 per violation
Sources: HR Arizona FCRA overview (https://hr.az.gov/federal-employment-laws), adverse-action guidance (https://www.tblaw.com/wp-content/uploads/2024/04/2... FTC five-day discussion (https://www.praesidiuminc.com/fcra-how-to-protect-... FCRA damages overview (https://www.haleskemp.com/employers-comply-fcra/)
A.R.S. § 44-1692 (Arizona statute)
Arizona statute permitting consumer reports for employment:
- Permits CRAs to furnish reports
- No statewide credit-check ban present
- Written consent required mirroring FCRA
- No specific lookback/destruction mandates
Sources: Arizona statute text (https://www.azleg.gov/ars/44/01692.htm), Arizona consent note (https://www.brightmine.com/us/resources/hr-complia...
Credit Check Best Practices for Arizona Employers
- Limit credit checks to positions with documented financial responsibilities
- Use standalone FCRA disclosure and obtain written authorization first
- Provide FCRA pre-adverse notice; wait five business days minimum
- Conduct individualized assessments; avoid automatic disqualifications
- Partner with FCRA-compliant CRAs; secure and limit report access
Marijuana Protection
Medicinal Marijuana
Registered medical marijuana cardholders cannot be disciplined solely for a positive marijuana test unless the employee used, possessed, or was impaired on employer premises or during work hours; employers may still act if federal funding/licensing would be lost (A.R.S. §36‑2813).
Recreational Marijuana
Adult‑use legalization does not limit employers' rights to maintain drug‑free workplaces or prohibit marijuana on their property; employers may discipline for use or impairment at work, but should document workplace use or impairment before adverse action (A.R.S. §36‑2851; A.R.S. §23‑493).
A.R.S. §36‑2813: https://www.azleg.gov/arsDetail/?title=36
A.R.S. §36‑2851: https://www.azleg.gov/arsDetail/?title=36
A.R.S. §23‑493: https://www.azleg.gov/arsDetail/?title=23
Drug Testing Regulations
As of Jan 2026, A.R.S. §23‑493 et seq. permits employer drug/alcohol testing (including random) subject to written‑policy, certified‑lab, confirmation, timing and employer‑paid testing requirements; A.R.S. §36‑2813 protects medical marijuana cardholders absent workplace use/impairment; A.R.S. §36‑2851 preserves employer rules.
Permitted Testing Types
Pre-Employment
Allowed if employer adopts required written policy and notifies applicants.
Random Testing
Permitted with written policy; must uniformly include all compensated employees.
Reasonable Suspicion
Permitted based on good-faith belief; testing as soon as practicable.
Post Accident
Permitted for employees reasonably believed to have contributed; test promptly.
Workers' Compensation Discount
No workers' comp reduction solely for positive drug tests; benefits remain unless drug use primarily caused injury.
Employers may still discipline, suspend, or terminate employees despite workers' comp eligibility for positive tests.
Best Practices
- Adopt and distribute a written drug-testing policy meeting statutory requirements
- Use certified laboratories and confirm positive results with GC‑MS
- Employer pays employee test costs, transportation, and testing time
- Don't discipline medical marijuana cardholders solely for positive metabolite results
- Include all employees uniformly; maintain confidentiality and result access
Clean Slate Laws
NoARS 13‑911 (eff. Dec 31, 2022) creates petition‑based, retroactive sealing with 2–10 year waiting periods, specific exclusions, limited employer access and disclosure exceptions; ARS 12‑558.03 limits employer liability; 5‑year wait applies only after sealed record then subsequent felony. https://www.azleg.gov/ars/13/00911.htm https://www.azleg.gov/ars/12/00558-03.htm
E-Verify Requirements
Mandatory for AllWho Must Use E-Verify
Private Employers [Legal Arizona Workers Act (A.R.S. Title 23, Chapter 2, Article 2)]
Must use E‑Verify for all new hires; complete I‑9 and initiate verification within three business days; retain records for employment duration or ≥3 years.
https://www.azag.gov/civil-rights/legal-az-workers... https://www.azleg.gov/ars/23/00214.htm
Federal Contractors [Federal contractor E‑Verify requirements (federal procurement rules)]
Subject to federal contractor E‑Verify requirements; Arizona requires verification within applicable timelines (e.g., verification within 90 days of contract award and three days for new hires).
https://www.azleg.gov/Briefs/Senate/DETERMINATION%... https://hr.az.gov/i-9-onboard-arizona
Any other relevant groups [Independent contractors — HCR 2060 (Proposition 314) / A.R.S. Title 23 amendments]
Effective January 1, 2026, HCR 2060 (Proposition 314, approved by voters November 2024) requires every employer to use E‑Verify when initially entering into a contract with an individual for labor or services valued at $600 or more. Exceptions: individuals previously verified; individuals working under a subcontract through another employer; holders of a valid license issued by a state agency; holders of a valid Arizona driver license.
https://www.azleg.gov/legtext/56leg/2R/summary/H.H... https://www.azleg.gov/ars/23/00216.htm
Background Check Regulations
Federal FCRA requirements govern most employment consumer-report background checks in Arizona. Arizona adds limited, job-specific state rules (e.g., childcare, vulnerable-adult registries), so state law layers on top of federal law for certain positions.
FCRA Compliance Process
Disclosure & Authorization
Provide clear, standalone written disclosure that a background check will be conducted. Obtain separate written authorization from the applicant before ordering the report.
Obtain Background Report
Order the background check from a Consumer Reporting Agency (CRA). Ensure the CRA is FCRA-compliant and provides accurate, up-to-date information.
Pre-Adverse Action Notice
If considering denying employment based on the report, provide the applicant with:
- Copy of the background report
- Copy of "A Summary of Your Rights Under the FCRA"
- Reasonable time to respond (typically 5 business days)
Adverse Action Notice
If final decision is made to deny employment, provide written notice including:
- Name, address, and phone number of the CRA
- Statement that the CRA did not make the decision
- Notice of right to dispute report accuracy
- Notice of right to request additional free copy within 60 days
Additional Resources & Compliance Updates
Official State Resources
- Arizona Revised Statutes Title 41 - State Governme...
- ARS 41-1463 - Discrimination; Unlawful Practices
- Arizona Attorney General - Employment Discriminati...
- Arizona Attorney General - Pre-Employment Inquirie...
- Arizona Attorney General - Legal Arizona Workers A...
- Industrial Commission of Arizona - Labor Departmen...