On December 19, 2025, Ohio enacted the E-Verify Workforce Integrity Act, a law designed to tighten employment verification in the state’s non-residential construction industry. Effective March 19, 2026, the law requires all nonresidential construction contractors, including subcontractors and labor brokers, working on commercial projects to use the federal E-Verify system to confirm the legal work status of every new hire. The legislation also imposes state-level penalties on employers that continue to employ individuals after receiving a “final nonconfirmation.”
Who’s Affected?
The law applies to all non-residential construction contractors, subcontractors, and labor brokers operating in Ohio. It covers projects such as office buildings, highways, bridges, utilities, and related infrastructure, but excludes residential buildings, agricultural structures, and mobile homes.
What’s Required?
Under the new law, employers must open an E-Verify case for every new hire. While the statute carves out an exemption for employees who were previously verified and are not subject to future reverification, the language is ambiguous. Contractors may still need to create new E-Verify cases for current employees whose work authorization requires federal reverification—a requirement that appears to conflict with E-Verify’s own operating rules.
The law also imposes strict recordkeeping obligations: employers must retain verification records for three years after the date of hire or one year after termination, whichever is longer. Failure to comply could trigger penalties. Additionally, any employee who receives a final nonconfirmation must be terminated immediately or the employer risks fines and potential debarment from state contracts.
To reinforce compliance, Ohio state agencies will embed E-Verify requirements into all relevant contracts, signaling that adherence to the law will be a prerequisite for doing business with the state.
Penalty and Debarment for Noncompliance
Ohio’s new E-Verify mandate goes beyond federal rules, introducing state-level penalties and the risk of losing access to state contracts. Investigations start with the state attorney general, who can act on formal or anonymous complaints. If a violation is found, a notice of violation is issued.
Employers that fail to create an E-Verify case face fines starting at $250 for a first offense, rising to $1,000 for a second (within three years) and $1,500 for subsequent violations. Penalties for continuing to employ a worker after a final nonconfirmation are far steeper: $5,000 for the first offense, $10,000 for the second, and $25,000 for any thereafter. Employers have 10 days to request a hearing or the order becomes final. Knowingly hiring unauthorized workers can result in permanent license revocation.
Action Steps for Employers
- Determine if your business falls under the mandate. If so, review E-Verify participation and compliance processes.
- Evaluate whether creating separate entities can help isolate E-Verify obligations.
- Review workforce authorization and subcontractor practices. Update contracts to include E-Verify requirements, ensure subcontractor awareness and compliance through nondiscriminatory means, and add indemnification clauses.
- Address collective bargaining agreements for employment eligibility verification provisions.
For tailored guidance on internal audits and compliance strategies under the new Ohio E-Verify law, please contact your Alston & Bird Immigration Team. We’re here to help you navigate these requirements and implement best practices.
If you have any questions, or would like additional information, please contact one of the attorneys on our Immigration team.
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