Ohio’s E-Verify Requirements for Nonresidential Construction Contractors Takes Effect on March 19. Is There a Catch?

Ohio’s E-Verify Workforce Integrity Act will take effect on March 19, 2026, imposing new employment verification requirements on certain entities involved in nonresidential construction. The Act requires nonresidential construction contractors, subcontractors, and labor brokers to utilize the Department of Homeland Security’s E-Verify program to verify the work eligibility of employees performing work on covered projects.

The Act’s sponsors, Republican State Representatives D.J. Swearingen and Tex Fischer, described the Act in a December 22, 2025, press release:

All contractors, subcontractors, and labor brokers working on public works projects for state agencies and political subdivisions and private-sector contractors in nonresidential construction will be required to use the federal E-Verify program to confirm employee eligibility. The program streamlines verification of new employees’ work permits, visas, and citizenship within 3-5 seconds.

However, the Act’s express language may conflict with federal rules and regulations, which prohibit re-verifying the employment eligibility of existing employees who were hired prior to the employer agreeing to E-Verify’s Memorandum of Understanding.

Who Is Covered by the Act?

The Act applies to three (3) categories of entities involved in nonresidential construction projects:

• Labor Brokers – Any entity hiring an employee and supplying an employee’s labor to a nonresidential contractor or subcontractor. Governmental entities and labor organizations are exempt from the definition.
• Nonresidential Construction Contractors – Any entity that has the responsibility for the means, manner, and method of work on a nonresidential construction project “with respect to one or more trades” and who represents that the individual is qualified to perform such work.
• Subcontractor – Any entity who contracts with a covered nonresidential construction contractor to perform any work on a nonresidential construction project.

A covered entity that fails to comply with the Act may face substantial monetary penalties and may be disqualified from participating in state contracts for a period of up to two years.

What Does the Act Require?

Unless an exemption explicitly applies, all covered entities must verify the employment eligibility of each employee “hired to perform work on a nonresidential construction project through the E-Verify program.” Within three days of the employee’s hire, covered entities must “use E-Verify to confirm the identity and legal working status of each employee employed.” If the covered entity receives notice from E-Verify that the employee is not eligible to work in the United States, they are prohibited from continuing to employ the employee, or they may face statutory penalties. The covered entity must keep the record of the verification for three years after the date of their hire or one year after the employee is terminated, whichever comes later.

Potential Conflict with Federal E-Verify Rules

Despite the Act’s sponsors stating that these requirements apply to new employees only, which aligns with federal law, the Act itself exempts covered entities from complying with E-Verify only if both of the following conditions apply:

1. the covered entity has previously verified the employee’s employment eligibility using E-Verify; and

2. the employer is not required to verify or reverify the employee’s eligibility under the federal Immigration Reform and Control Act of 1986.

To sign up for the E-Verify program, employers must agree to E-Verify’s terms and conditions prior to utilizing the system. As is pertinent here, E-Verify’s Terms and Conditions prohibit employers from creating “an E-Verify or E-Verify+ case for an employee who was hired before the employer signed the E-Verify Terms and Conditions, except in certain instances such as employees of federal contractors with FAR E-Verify clause.” Accordingly, Ohio’s Act appears to require covered entities to re-verify existing employees’ employment eligibility if they weren’t e-verified at the time of their hire, which would risk the covered entity’s eligibility to participate in the E-Verify program. 

Looking Ahead

Ohio joins a growing number of states requiring some level of participation in the E-Verify program for employers involved in government or construction projects. As the Act takes effect, contractors and labor brokers operating in Ohio’s non-residential construction sector should review their hiring and employment verification procedures to ensure compliance at both the state and federal levels.

If you have any questions about complying with Ohio’s E-Verify Workforce Integrity Act, please reach out to Andrew M. Hanna, Ben F. Kerns, and Jonathan M. Scandling or any member of Frantz Ward’s Construction or Labor & Employment practice groups.