Ohio’s E-Verify Law for Nonresidential Construction Contractors Takes Effect Soon

Starting March 19, 2026, Ohio’s E-Verify Workforce Integrity Act will require any “nonresidential” construction company contracting in the state of Ohio to use E-Verify, and impose penalties for violations. 

The main provision of 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. 

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. 

The Ohio E-Verify law enforcement process starts with an investigation by the attorney general. The investigation can be initiated by formal complaint on a form prescribed by the attorney general. 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.” Additionally, the attorney general may investigate anonymous complaints to the extent they include sufficient facts to reasonably conclude a violation has 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 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 requests within 10 calendar days results in a final, enforceable order. 

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 an 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.” 

If the nonresidential construction contractor has projects both inside Ohio and in a neighboring state, like Kentucky, the contractor is only required to enroll in E-Verify for all Ohio worksite locations since Kentucky does not have a mandatory E-Verify law. However, if a contractor has projects in both Ohio and Pennsylvania, the contractor may need to enroll in E-Verify for both states as Pennsylvania has a mandatory E-Verify law for “public work” construction projects. 

Employers may utilize E-Verify for new hires only, unless they are a federal contractor with an applicable FAR E-Verify clause in the contract with the federal agency; in that case the contractor can opt to E-Verify all employees. However, this Ohio law appears to be in conflict with federal law. It states a nonresidential construction contractor, subcontractor, or labor broker is not required to comply with the E-Verify component of the statute if both of the following apply:

(1) The nonresidential construction contractor, subcontractor, or labor broker has previously verified an employee's employment eligibility using E-Verify; and (2) The employer is not required to verify or reverify the employee's eligibility to work under section 101(a)(1) of the federal “Immigration Reform and Control Act.”

Here, the Ohio statute seems to instruct employers to run existing employees through E-Verify if they must be reverified, such as when an Employment Authorization Document (EAD) expires. Under federal E-Verify law, an employer may not run an employee through E-Verify after initially doing so, even when there must be a reverification of an EAD. Ohio nonresidential contractors should consult with their immigration counsel about how to approach this potential conflict.

In addition, 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.

This Ohio E-Verify law is a growing trend in the Midwest industrial states, as Michigan recently enacted its own E-Verify law applying to those companies that contract with numerous Michigan departments and agencies. Previously, the state of Indiana passed a similar law, and Pennsylvania has an E-Verify law covering contractors and subcontractors performing “public works.”