As a reminder for all construction employers in Ohio, the law now requires employers in nonresidential construction to use federal E‑Verify—in addition to Form I‑9—for all employees assigned to covered projects within Ohio.

The rule is size‑neutral and applies to contractors, subcontractors, and labor brokers on covered work. Residential construction, manufactured or mobile homes, industrialized units, and buildings or structures incidental to agricultural land use are excluded.

Enforcement is driven by complaints to the Ohio Attorney General (AG) and includes monetary sanctions, contract ineligibility, and permanent business revocation.

This update applies to all employers making hiring decisions for covered nonresidential construction projects in Ohio and took effect on March 19, 2026.

What Employers Need to Do

1) Confirm Coverage and Scope

• Confirm and document whether the Ohio work is covered (nonresidential construction/renovation and specified infrastructure such as roads, bridges, utilities) or excluded (residential construction; manufactured/mobile homes; industrialized units; and structures incidental to agricultural land use).
• Implement subcontractor controls even if the statute does not impose prime-to-sub liability: include an E‑Verify compliance clause in subcontractor agreements and verify subcontractor enrollment status.

2) Enroll and Operationalize E‑Verify

• Enroll in E‑Verify and update onboarding SOPs to reflect Ohio coverage.
• Create a Case for Each Worker using Form I‑9 Section 1 information.
• New‑hire Case Exception: Create an E‑Verify case for all new hires.

3) Follow the E‑Verify Workflow

• Employment Authorized: Close the case.
• Tentative Non-confirmation (TNC): Notify the newly hired employee, provide the TNC notice, and allow the employee to contest. They will have 10 federal working days to resolve.
• Final Non-confirmation (FNC): Close the case and terminate employment or withdraw the offer. Continuing to employ after an FNC violates the Act.

4) Recordkeeping 

• Retain Forms I‑9 and E‑Verify results for three (3) years after the date of hire or one (1) year after termination, whichever is later.
• The references “record‑retention guidelines prescribed by the Act” but do not add durations beyond the above.

5) Training, Auditing, and Coordination

• Train HR, recruiting, and project administrators on TNC/FNC steps and timelines.
• Standardize documentation (case notes, notices, closure steps) and retention.
• Coordinate with subcontractors/labor brokers to ensure enrollment and process alignment.

6) Multi‑State Setups (Scope Boundaries)

• When a contract contains the FAR E‑Verify clause (FAR 52.222‑54), the contractor must enroll as a federal contractor and E‑Verify (a) all new hires and (b) employees assigned to the covered federal contract under the FAR timelines. This federal track is distinct from state mandates and should be built into capture/procurement and project‑mobilization procedures.

Overview

• In‑state Scope: Applies only to nonresidential construction projects within Ohio (work performed outside Ohio is not covered).

• Size‑neutral: Applies to all covered employers regardless of employer size.

• What is Required: Use federal E‑Verify to confirm all employees on covered projects are authorized to work in the U.S., in addition to Form I‑9.

• Nonresidential Construction (Definition/Coverage): Construction or renovation of any nonresidential building, as well as highways, bridges, utilities, and related infrastructure.

• Exclusions: Residential construction, manufactured or mobile homes, industrialized units, and buildings/structures incidental to agricultural land use.

• Prime vs. Subs Liability: No statutory contractor liability for subcontractor noncompliance (use contract clauses).

Why this matters

• Mandatory E‑Verify on Covered Ohio Projects: All employees assigned to covered nonresidential construction in Ohio must be verified via E‑Verify in addition to Form I‑9.

• Tentative Non-confirmation/Final Non-confirmation (TNC/FNC) Timing is Critical: Missing the 10‑federal‑working‑day contest window or failing to separate after an FNC escalates enforcement risk.

• Penalty Exposure can be Significant: Per‑violation fines, contract ineligibility, and—in knowing‑hire cases—permanent license revocation.

• Prime/Sub-alignment Without Statutory Vicarious Liability: While primes are not statutorily liable for subs’ compliance, contractual controls are essential to avoid project disruption and complaint exposure.

• Federal Interplay: Employers must comply with Ohio’s E‑Verify mandate while continuing to follow all federal Form I‑9 and E‑Verify rules.

• Multi‑state Nuance: Requirements vary by state (e.g., Pennsylvania public works vs. no Kentucky statewide mandate), so ensure worksite‑specific enrollment and SOPs.

Additional information

Enforcement & penalties (Ohio AG via complaints):

• Process: Complaints must be on an AG‑prescribed form. The AG must investigate if the complaint includes sufficient facts and may investigate anonymous complaints with sufficient facts. If the AG finds reasonable evidence of a violation, it issues a notice of violation. The company has 10 calendar days from receipt to request an adjudicatory hearing (director of commerce or designee). Missing the 10‑day window results in a final, enforceable order.

• Civil Action Posture/Triggers: A civil action may follow failure to create an E‑Verify case or continued employment after the AG has issued a notice requiring satisfactory proof of work authorization.

• Sanctions: Monetary penalties of $250–$25,000, including up to $1,500 for failure to create a case and up to $25,000 for continued employment after a Final Nonconfirmation (FNC) (with higher penalties for repeat offenses within three (3) years). Possible ineligibility to bid for or participate in state contracts for up to 2 years. Permanent business‑license revocation if a contractor knowingly hires an unauthorized worker.

• Enforcement Discretion: Actions are pursued at the discretion of the Ohio AG.

Source Reference

• Ohio HB 246 – Require certain construction industry employers to use E-Verify

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.