In a significant shift for the Buckeye State’s construction sector, Governor Mike DeWine has signed House Bill 246 (HB 246), known as the E-Verify Workforce Integrity Act. The new law, which takes effect on March 20, 2026, requires many construction employers to use the federal E-Verify system to confirm the legal work authorization of their employees.
The legislation is designed to ensure that workers on major Ohio projects are legally authorized to work in the United States while protecting taxpayers and skilled local laborers.
Who Must Comply?
The mandate applies broadly to contractors and subcontractors involved in specific types of construction across Ohio.
- Covered Projects. The law applies to “non-residential construction projects,” which includes the construction or renovation of highways, bridges, utilities, infrastructure, and commercial buildings.
- Public Works. All contractors and subcontractors working on public works projects for state agencies or political subdivisions are covered.
- Exclusions. The act specifically excludes residential construction involving single, double, or triple family homes, as well as structures built for agricultural purposes.
Key Requirements for Employers
Covered employers must integrate E-Verify into their standard hiring and retention workflows.
- Mandatory Enrollment. Employers must complete a one-time enrollment in the free federal E-Verify program at www.e-verify.gov.
- Verification Timeline. Employers must verify every new hire assigned to a covered project. The system typically provides results within seconds.
- Record Retention. Covered businesses are required to maintain verification records for three years after the date of hire or one year after the employee is terminated, whichever period is longer.
- Termination Mandate. If E-Verify issues a “final non-confirmation” of eligibility, the employer must immediately terminate that individual’s employment.
Enforcement and Penalties
The Ohio Attorney General is empowered to investigate violations through both formal audits and anonymous complaints. Non-compliance can lead to severe operational and financial consequences.
| Violation Type | Potential Penalty |
| Failure to Verify | Fines starting at $250 per violation, increasing to $1,500 for repeat offenses. |
| Failure to Terminate | Fines of up to $25,000 per violation for continuing to employ a person after a final non-confirmation. |
| Willful Violations | Disqualification (debarment) from bidding on or participating in any state contracts for up to two years. |
| Knowing Employment | Permanent revocation of the business license for that location if a court finds the employer knowingly hired unauthorized labor. |
Next Steps for Employers
With the deadline approaching, covered employees should begin adjusting their employment verification processes immediately.
- Enroll Early: Do not wait until the deadline to enroll in E-Verify; early adoption allows your team to troubleshoot the system and update internal onboarding procedures.
- Audit Subcontractor Language: Update downstream contracts to require that all subcontractors and labor brokers also comply with the E-Verify Workforce Integrity Act to protect your firm from shared liability.
- Centralize Recordkeeping: Implement a centralized tracking system to ensure that all I-9 and E-Verify documentation is stored according to the act’s specific retention requirements.
- Train Hiring Managers and HR Staff: Ensure hiring managers and human resources teams understand the 10-day window to request a hearing if they receive a “notice of violation” from the Attorney General.
