Ohio’s New E-Verify Law Targets Nonresidential Construction

Ohio E-Verify Law Brings New Compliance Requirements for Nonresidential Construction Employers

Ohio construction employers involved in nonresidential projects may need to take steps now to prepare for new state requirements tied to worker eligibility verification, as a new law is set to go into effect in March.

The E-Verify Workforce Integrity Act takes effect March 19, 2026, and will require E-Verify participation for any nonresidential construction company, along with subcontractors and labor brokers working on nonresidential construction. The law was signed by Ohio Governor Mike DeWine on Dec. 19, 2025.

What E-Verify Is — and What It Doesn’t Replace

E-Verify is an internet-based system that checks information provided by an employer from an employee’s Form I-9 against databases maintained by the U.S. Department of Homeland Security and the Social Security Administration to confirm employment eligibility.

However, the Act does not replace federal I-9 obligations. Employers must still comply with all federal employment eligibility verification requirements, including completing and retaining Form I-9 documentation.

Who Must Comply Under the New Law

The Act applies broadly to companies of any size that hire employees to complete nonresidential construction projects, which the law defines as the construction or renovation of:

• buildings
• highways
• bridges
• utilities
• related infrastructure

The law does not apply to certain types of residential construction, including industrialized units, manufactured homes and residential buildings.

New Hire Verification and Recordkeeping Expectations

Employers covered by the Act will generally be required to create an E-Verify case for all new hires. There is a limited exception if the employer previously ran the employee through E-Verify and the worker is not an individual needing future verification or reverification.

Covered employers must also comply with record retention guidelines set by the Act, creating an added administrative requirement for contractors and HR teams, particularly those onboarding at high volumes.

The law may also trigger compliance questions for employers regarding whether they need to establish E-Verify cases for existing employees whose work authorization must be reverified under federal requirements.

Penalties and Contracting Restrictions for Noncompliance

The Act provides enforcement measures that can include monetary penalties and limitations on state contract participation.

If an employee receives a final nonconfirmation through E-Verify, the law requires the contractor to terminate the individual or face potential penalties, including:

• up to $1,500 for “failure to create a case” violations
• up to $25,000 for “continued employment” violations

In addition, employers found in noncompliance may be barred from bidding on or participating in state contracts for up to two years.

The law also includes a major risk for businesses found to have knowingly employed an individual without work authorization, allowing for permanent revocation of the company’s business license.

Enforcement actions under the Act are pursued at the discretion of the Ohio Attorney General.

What Construction Employers Should Do Next

With the effective date approaching, contractors, subcontractors and labor brokers supporting nonresidential work may want to review:

• whether the law applies to their current and upcoming projects
• onboarding practices and E-Verify workflows
• internal HR policies for handling nonconfirmations
• record retention processes
• impacts on bidding eligibility for state-funded work

Originally reported by Gregory A. Wald and Mike Fussell in Employment Law World View.