Ohio Requires E-Verify for Construction Employers

The Details

Ohio has enacted legislation, House Bill 246, which requires all covered employers working on commercial projects to use the federal E-Verify system (E-Verify) to confirm the legal work status of every new hire. House Bill 246 is effective March 19, 2026.

Background

As background, E-Verify is an online system operated by the federal government that is jointly administered by the United States Department of Homeland Security and the Social Security Administration under the federal "Immigration Reform and Control Act of 1986," or any of its successor programs. E-Verify enables an employer to determine a new hire's eligibility to work in the United States.

A Final Nonconfirmation for a case occurs when E-Verify cannot confirm an employee's employment eligibility under certain circumstances. Employers must close the case once the case receives a Final Nonconfirmation and indicate whether they will continue to employ the individual. Review the E-verify site for more information.

House Bill 246

Under House Bill 246, Ohio state agencies will require:

·      E-Verify for all relevant contracts

·      Covered employers to open an E-Verify case for every new hire. Covered employers include all non-residential construction contractors, subcontractors, and labor brokers operating in Ohio. See the text of the law for further details.

·      Employers to immediately terminate employees who receive a final nonconfirmation, or the employer may face fines and potentially be banned from state contracts.

An employee is an individual who performs services for a contractor, subcontractor, or labor broker who:

·      Is subject to the contractor's, subcontractor's, or labor broker's direction and control (not only as to the result accomplished but also as to the details of how the work is performed); and

·      Receives compensation in the form of wages, salary, or other form of remuneration in exchange for services rendered.

Note: Under House Bill 246, E-Verify is not required for employees who were previously verified and are not subject to future reverification under federal law. The language of the HB 246 is ambiguous. Employers considering verifying current employees should consult with counsel as doing so may conflict with federal rules.

Recordkeeping

Under the law, employers must retain verification records for three years after the employee's date of hire or one year after termination, whichever is longer.

Penalties

An employer who knowingly hires an unauthorized worker may face permanent license revocation.

Employers found not to have created an E-Verify case may face the following penalties:

·      First offense: $250

·      Second offense: $1,000 for a second (within three years)

·      Subsequent violations: $1,500 per violation

Employers found to have continued to employ a worker after a final nonconfirmation may face higher penalties:

·      First offense: $5,000

·      Second offense: $10,000

·      Subsequent violations: $25,000 per violation

Employers have 10 days to request a hearing, or the order becomes final.

Next Steps

Covered employers should review hiring policies and practices, and train supervisors to help ensure compliance with the changes.