Ohio Revised Code: Section 4151.02
This is a new law about to come into effect on March 19th, 2026. It applies to non-residential contractors, as defined, for their Ohio worksites. Covered contractors now need to enroll in the E-Verify system, and we can provide guidance from there.
1. What is it? Starting March 19, 2026, Ohio’s E-Verify Workforce Integrity Act will require any “nonresidential” construction company contracting to do work at a jobsite in the State of Ohio to use the Federal E-Verify system when hiring new workers, or updating their Form I-9s when a worker’s temporary work permission expires, and imposes penalties for violations.
2. Who is covered? The Act requires any “nonresidential construction contractor, subcontractor, or labor broker to verify the employment eligibility of each employee hired to perform work on a nonresidential construction project through the E-Verify program.” A nonresidential construction project is defined as “the construction or renovation of any building, highway, bridge, utility, or related infrastructure.” This includes installation work on an industrial building as it would likely be viewed as an “improvement” or “renovation” on a nonresidential project. It does not include industrialized units, manufactured homes, residential buildings, mobile homes, or buildings or structures that are incidental to the use of land on which the building or structure is located for agricultural purposes.
3. What about employees that I only hire to work on jobsites outside of Ohio? The statute seemingly applies to non-residential construction projects within the state of Ohio only. If an Ohio nonresidential construction contractor performs work outside the state, the statute should not apply.
4. How is it enforced? The enforcement process starts with an investigation by the Ohio Attorney General’s office. The investigation can be initiated by formal complaint on a form prescribed by the Attorney General, including an anonymous complaint. The Attorney General must “investigate any violation alleged in the complaint form when the Attorney General determines the complaint contains sufficient facts to reasonably conclude that the violation may have occurred.” If the Attorney General determines that “reasonable evidence exists” that a violation occurred, the Attorney General will issue a notice of violation. The company then has 10 calendar days from receipt of the notice of violation to make a request to the Attorney General for an adjudicatory hearing conducted by the director of commerce or their designee. Failure to make such a request within 10 calendar days results in a final, enforceable order. The system is set up, as a result, to encourage complaints by losing bidders against winning bidders, disgruntled applicants or terminated employees against an employer, and whistleblowers in general.
5. How much are the penalties? A contractor’s failure to create an E-Verify case or its continuing employment after the attorney general issues a notice to the contractor that it must “provide satisfactory proof” that the employee is “authorized to be employed” can result in a civil action brought by the attorney general. These penalties are between $250 and $25,000, and/or a debarment order rendering the contractor, subcontractor, or labor broker ineligible “to bid for or participate in any future state contract for a period of up to two years.”
6. What about existing employees? Employers may utilize E-Verify for new hires only, unless they are a federal contractor with an applicable FAR E-Verify clause in their contract with the federal agency. In that case, the contractor can opt to E-Verify all employees. The Ohio statute seems to require that re-verified employees should also be run through E-Verify at the time that a temporary work permit for a foreign worker is being re-verified incident to an extension of their work permit, even if they were run through it upon initial hire. Federal law is partly in conflict with this requirement (you cannot run someone through E-Verify twice), so contact counsel if you are faced with this situation.
7. What about my subcontractors? The new Ohio law does not render contractors liable for the compliance of their subcontractors. However, contractors should collaborate with their subcontractors to ensure they are aware of the new requirement. Contractors may want to include language in any subcontractor agreements discussing the requirements to comply with the Ohio E-Verify law. Also, contractors have in the past been sanctioned by the Federal authorities for a pattern and practice of willful ignorance of their subcontractors’ use of undocumented labor, so it is always advisable to have subcontractors agree to comply with all applicable laws, including those related to employment authorization.
8. What is the system, and how do I enroll in it? It is basically a database that double-checks the accuracy of what a new hire (or someone whose temporary work permit is expiring and being renewed) reports on a Form I-9, to avoid people using fake work permits and/or using someone else’s identity or Social Security Number when applying for work. Link follows:
For more information, contact any member of the SSEG Business Law, Transactional Law, Securities Law, and Corporate Law practice group.