Haley was born in Seattle to a large Catholic family (the fifth of six children) of Italian/Irish descent. He began acting on stage as a child in the Seattle area. At the age of three his family moved to Saint-Jovite, Quebec, and he was put in a boarding home where he learned to speak fluent French. He hated the experience so much he refused to speak the language upon his return 18 months later, except to translate for his younger sister, who only spoke French. He had a turbulent childhood and, at 15, ended up living with his brother in Ellensburg, WA. As a teenager, he stumbled upon the movie set of Scorchy (1976) while wandering in downtown Seattle. After seeing some of the movie being filmed and meeting the star, Connie Stevens, he made up his mind to pursuit a career in movies.