in Newswire Published on February 7, 2024

Arizona Labor Force Data Breach Triggers Class Action Lawsuit [UPDATE]

Last Updated on October 9, 2026

Bozek et al. v. Arizona Labor Force, Incorporated et al.

Filed: January 30, 2024 ◆§ 2:24-cv-00210

Arizona Labor Force faces a class action that claims deficient data security resulted in the unauthorized disclosure of current and former employees’ personal data.

Defendant(s)

Arizona Labor Force, Inc. Labor Systems, Inc.

Law(s)

California Unfair Competition Law California Consumer Privacy Act California Consumer Records Act

State(s)

Arizona

October 9, 2026 – $300K Arizona Labor Force Settlement Resolves Lawsuit Over 2023 Cyberattack

Arizona Labor Force, Inc. and Labor Systems, Inc. have agreed to a $300,000 class action settlement to resolve a lawsuit filed over the January 2023 data breach detailed on this page.

Learn more about the agreement with ClassAction.org’s write-up on the Arizona Labor Force data breach settlement.

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The companies behind staffing agency Arizona Labor Force face a proposed class action that claims their deficient data security resulted in the unauthorized disclosure of current and former employees’ personal information.

Want to stay in the loop on class actions that matter to you? Sign up for ClassAction.org’s free weekly newsletter here.

The 36-page lawsuit alleges that during a breach of the agency’s systems, individuals’ private data—including their names, addresses, Social Security numbers and other W-2 information—was acquired by an unauthorized third party and later posted on the dark web.

According to the suit, defendants Arizona Labor Force, Inc. and Labor Systems, Inc. have yet to notify affected employees or any state attorney general of a data breach. The case points out that it is unknown how long the sensitive information has been available on the dark web.

The complaint contends that negligence on the agency’s part is to blame for the data breach, adding that the incident was a direct result of inadequate cybersecurity protocols and insufficient employee training.

What’s more, the filing takes issue with the company’s failure to report the data breach. The plaintiffs, two former employees residing in California, only recently learned their personal information had been posted on the dark web, the lawsuit says.

“Although their sensitive information was improperly exposed, [the plaintiffs] and Class members have still not been notified of the Data Breach,” the suit relays, arguing that the defendants have deprived them of the opportunity to take early steps to mitigate the harm resulting from the unauthorized disclosure of their information.

The case charges that the consequences of the company’s alleged negligence will impact victims for years to come.

The lawsuit looks to represent anyone whose private information was subject to the Arizona Labor Force and Labor Systems, Inc. data breach.

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