$300K Arizona Labor Force Settlement Ends Class Action Lawsuit Over 2023 Data Breach

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Arizona Labor Force, Inc. and Labor Systems, Inc. have agreed to a $300,000 class action settlement to resolve a lawsuit that alleged the staffing companies failed to adequately safeguard current and former employees’ personal information from a January 2023 data breach. 

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The Arizona Labor Force and Labor Systems, Inc. class action settlement received preliminary approval from the court on August 4, 2026. Eligible for the settlement are all United States residents whose personally identifiable information may have been compromised in the Arizona Labor Force and Labor Systems, Inc. data breach, which occurred on or around January 3, 2023.

Court documents state that approximately 37,884 people are included in the settlement class.

The court-authorized Arizona Labor Force class action settlement website can be found at AZLaborForceSettlement.com.

Class members who file a timely, valid claim form can receive an estimated $25 pro rata (equal share) cash payment, with no proof required.

The final amount of each class member’s cash payout may be higher or lower, depending on the total number of valid claims filed, among other factors.

To file an Arizona Labor Force settlement claim form online, class members can head to this page and enter the login ID and PIN found on their copy of the settlement notice. Alternatively, class members can download a PDF claim form to print, complete, and return by mail to the settlement administrator.

All Arizona Labor Force settlement claim forms must be submitted online or postmarked by December 28, 2026.

The court will determine whether to grant final approval to the Arizona Labor Force class action settlement following a hearing on January 12, 2027. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Arizona Labor Force class action lawsuit alleged that the staffing companies failed to implement reasonable cybersecurity measures to protect current and former employees’ private information from a data breach that occurred on or around January 3, 2023. The suit further alleged that cybercriminals posted employees’ information on the dark web following the cyberattack.

Court documents state that personal information that may have been compromised during the data breach included names, addresses, Social Security numbers, and W-2 information. 

Learn all about the legal process: What is a class action lawsuit?