When does Ohio's E-Verify law take effect?

The E-Verify Workforce Integrity Act (HB 246) takes effect on March 20, 2026. Governor DeWine signed the bill on December 19, 2025, with a 90-day implementation period.

Does Ohio's E-Verify law apply to residential construction?

No. HB 246 applies only to nonresidential construction. Residential construction, agricultural structures, manufactured homes, industrialized units, and mobile homes are explicitly excluded from the law's requirements.

What happens if an employee receives a Final Nonconfirmation?

If E-Verify issues a Final Nonconfirmation (FNC), the employer must terminate the employee's employment. Under HB 246, continuing to employ a worker after receiving an FNC is a violation with penalties of $5,000 (first offense), $10,000 (second within 3 years), or $25,000 (third or more within 3 years) per violation.

Am I liable for my subcontractor's E-Verify violations?

HB 246 does not impose direct statutory liability on GCs for sub violations. However, GCs face significant indirect risk: project delays, stop-work orders on subs, reputational damage, and potential contractual exposure. Industry best practice is to require E-Verify compliance in all subcontract agreements and monitor sub compliance proactively.

Ohio's $25,000 E-Verify Penalty Takes Effect March 20. Is Your Business Ready?

Q: Do I need to E-Verify existing employees?

No. The law requires E-Verify cases only for new hires after the effective date (March 20, 2026). Existing employees hired before that date are not subject to the E-Verify requirement under HB 246, though federal I-9 requirements still apply to all employees.

Q: Is there a small business exemption?

No. HB 246 does not include a size-based exemption. Every contractor, subcontractor, and labor broker performing nonresidential construction work in Ohio must use E-Verify, regardless of the number of employees.

Q: How long do I need to retain E-Verify records?

Under federal I-9 retention rules (8 CFR 274a.2), which also apply to associated E-Verify records, you must retain case records for 3 years after the hire date or 1 year after termination, whichever is later. Keep confirmation numbers, case results, and any Tentative Nonconfirmation correspondence.

Q: How do I register for E-Verify?

Register at e-verify.gov. You will need your company's legal name, EIN, NAICS code, and a designated point of contact. After completing the online enrollment (which takes about 30 minutes and must be completed in one session), you will receive a Company ID and can begin creating cases. Each new hire must have a case created within 3 business days of their start date.

Q: What is the difference between E-Verify and I-9?

Form I-9 is a federal requirement for all employers to confirm a new hire's identity and work authorization using physical documents. E-Verify is an electronic system that cross-checks I-9 data against DHS and SSA databases for additional confirmation. Under HB 246, Ohio nonresidential construction employers must do both: complete the I-9 and submit an E-Verify case for each new hire.

HB 246 requires every nonresidential construction contractor, subcontractor, and labor broker in Ohio to use E-Verify for new hires. No size exemption. Anonymous complaints permitted. Here is exactly how to prepare.

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Does HB 246 apply to your business?

1. What type of construction work do you do?

2. Do you hire employees in Ohio?

HB 246 applies to your business. You must be enrolled in E-Verify and creating cases for all new hires by March 20, 2026. Penalties range from $250 to $25,000 per violation. See the 7-step compliance checklist below

Likely exempt. HB 246 applies to nonresidential construction only. If you exclusively do residential work, the E-Verify requirement does not apply. However, if you take on any commercial, industrial, or institutional projects, you would need to comply.

E-Verify may not apply yet. The law requires E-Verify for new hires in Ohio. If you do not currently hire employees in Ohio, you are not yet subject to HB 246. This changes as soon as you make your first Ohio hire on a nonresidential project.

Ohio E-Verify Workforce Integrity Act — At a Glance

Official name	E-Verify Workforce Integrity Act (Ohio HB 246)
Effective date	March 20, 2026
Signed by	Governor Mike DeWine, December 19, 2025
Who must comply	All nonresidential construction contractors, subcontractors, and labor brokers in Ohio — no size exemption
What is required	Enroll in E-Verify and create a case for every new hire within 3 business days of start date
Penalties	Two tracks: $250–$1,500 per failure to verify; $5,000–$25,000 per failure to terminate after FNC. Up to 2-year debarment from public contracts for willful violations.
Enforcement	Ohio Attorney General; anonymous complaints permitted
Excluded	Residential construction, agricultural structures, manufactured homes, mobile homes

Last updated: March 7, 2026

What Is the E-Verify Workforce Integrity Act?

Ohio House Bill 246, officially titled the E-Verify Workforce Integrity Act, was signed into law by Governor Mike DeWine on December 19, 2025. The law takes effect March 20, 2026 — 90 days after filing with the Secretary of State.

The Act mandates that all contractors, subcontractors, and labor brokers engaged in nonresidential construction in Ohio must enroll in and use the federal E-Verify system to confirm the work authorization of every new hire. E-Verify is the U.S. Department of Homeland Security's electronic system that cross-checks employee I-9 data against DHS and Social Security Administration records.

Ohio joins a growing number of states that require E-Verify for construction employers. HB 246 stands out for its tiered penalty structure (up to $25,000 per violation), no size exemption, and the enforcement authority granted to the Ohio Attorney General. As reported by Littler Mendelson, Vorys, and Construction Dive, this law significantly expands Ohio's workforce compliance requirements.

Who Must Comply?

HB 246 applies to three categories of employers in nonresidential construction:

Contractors — Any entity that contracts directly with a property owner or developer for nonresidential construction work.
Subcontractors — Any entity that contracts with a contractor (or another subcontractor) to perform a portion of the nonresidential construction work.
Labor brokers — Any entity that supplies construction labor to contractors or subcontractors.

What "nonresidential" means

The law defines nonresidential construction broadly: commercial buildings, industrial facilities, institutional projects (schools, hospitals), infrastructure, public works, and mixed-use projects where the primary purpose is not residential dwelling.

What is excluded

Residential construction — Single-family homes, multi-family dwellings, apartments, condominiums, and townhomes are excluded.
Agricultural structures — Barns, silos, greenhouses, and other farm buildings.
Manufactured homes, industrialized units, and mobile homes — Covered under separate Ohio code sections.

No size exemption. Unlike some states, HB 246 does not exempt small businesses. A sole proprietor with one new hire faces the same E-Verify requirement as a 500-person firm. If you perform nonresidential construction in Ohio, you must use E-Verify.

Step-by-Step Compliance Checklist

Follow these seven steps to prepare before March 20, 2026:

Register for E-Verify
Go to e-verify.gov and complete the online enrollment. You will need your company's legal name, EIN, NAICS code, and a designated point of contact. Registration takes about 30 minutes and must be completed in a single session. You will receive a Company ID upon completion.
Create E-Verify cases for every new hire
After the effective date, submit an E-Verify case for each new employee within 3 business days of their start date. This is in addition to completing the federal Form I-9, which remains a separate requirement.
Handle Tentative Nonconfirmations (TNCs) correctly
If E-Verify returns a TNC, you must notify the employee in writing. The employee has 10 federal government working days to decide whether to take action to resolve the mismatch. If they choose to contest, they must contact DHS or visit SSA within 8 federal government working days after referral. You may not take adverse action (termination, reduction in hours, reassignment) during the contest period.
Terminate on Final Nonconfirmation
If the case results in a Final Nonconfirmation (FNC), you must terminate the employee. While federal E-Verify rules permit but do not require termination on FNC, HB 246 makes continued employment after an FNC a separate violation subject to penalties of $5,000–$25,000 per occurrence.
Retain records for 3 years / 1 year
Keep E-Verify case records for 3 years after the hire date or 1 year after termination, whichever is later. This includes confirmation numbers, case results, and all TNC/FNC correspondence.
Update subcontract agreements
Add E-Verify compliance clauses to all subcontract and labor broker agreements. Require subs to provide their E-Verify Company ID, maintain enrollment, and indemnify for violations. This protects you contractually even though HB 246 does not impose direct statutory liability on GCs for sub violations.
Train your hiring staff
Ensure that HR personnel, project managers, and anyone involved in onboarding understand the E-Verify process, TNC procedures, and anti-discrimination rules. E-Verify must be used consistently for all new hires — selective use based on appearance or national origin violates federal anti-discrimination law.

Penalty Structure

HB 246 establishes two separate penalty tracks enforced by the Ohio Attorney General (ORC 4151.04). Each failure per employee is a separate violation.

Track A — Failure to create E-Verify case (ORC 4151.02)

Violation Tier	Description	Fine per Violation	Additional Consequences
First violation	Failure to enroll in E-Verify or create a timely case for a new hire	$250	Written notice; 10 days to request an adjudicatory hearing
Second violation	Repeat violation within 3 years of first offense	$1,000	Same hearing rights
Third+ violation	Third or subsequent violation within 3 years	$1,500	Two or more willful violations: up to 2-year debarment from public contracts

Track B — Failure to terminate after Final Nonconfirmation (ORC 4151.03)

Violation Tier	Description	Fine per Violation	Additional Consequences
First violation	Continuing to employ a worker after E-Verify Final Nonconfirmation	$5,000	Written notice; 10 days to request an adjudicatory hearing
Second violation	Repeat violation within 3 years of first offense	$10,000	Same hearing rights
Third+ violation	Third or subsequent violation within 3 years	$25,000	Two or more willful violations: up to 2-year debarment from public contracts

License revocation (ORC 4151.06) is a separate court-ordered remedy available when an employer knowingly employs unauthorized aliens. It is permanent, not tied to the penalty tier system.

Each failure to verify an employee constitutes a separate violation. A contractor who fails to run E-Verify on 10 new hires could face 10 separate first-violation penalties — $2,500 from a single hiring cycle.

Cost of non-compliance

$25,000

per failure to terminate after FNC + possible debarment from state contracts

Cost to check your status

Free license lookup. Free for subs. Set up in under 15 minutes.

Complaint-driven enforcement. Any person — including competitors, employees, union reps, or members of the public — may file an anonymous complaint with the Ohio AG. You do not need to be caught in an audit. A single phone call can trigger an investigation.

GC Liability for Subcontractor Violations

A common question from general contractors: "Am I on the hook if my sub doesn't use E-Verify?"

Under HB 246, general contractors are not directly liable for a subcontractor's failure to use E-Verify. The law places the E-Verify obligation on each employer individually.

However, GCs face significant indirect exposure:

Project delays — If a sub receives a stop-work order or loses their license due to E-Verify violations, your project timeline suffers.
Reputational risk — Public enforcement actions against your subs reflect on your operation, especially on public and institutional projects.
Contractual liability — If your subcontract doesn't address E-Verify compliance and a violation disrupts the project, you may have limited recourse against the sub.
Debarment cascade — A debarred sub cannot work on public contracts for 2 years. If they are a critical trade on a public project, you need a replacement immediately.

Best practice: Require E-Verify compliance in every subcontract agreement, collect and record sub E-Verify Company IDs, and periodically check that subs maintain active E-Verify enrollment. Pair this with license and insurance monitoring to maintain a full picture of sub risk.

How TradeProof Helps Ohio Contractors Stay Ahead

TradeProof is construction compliance software based right here in Columbus, Ohio. We built it specifically for GCs, compliance managers, and project teams who need to manage subcontractor risk across multiple states and regulatory requirements.

While E-Verify confirms work authorization for new hires, TradeProof addresses the other half of contractor compliance: licenses, insurance, and workers' compensation. Together, they form a complete compliance picture.

What TradeProof does

License lookup across all 50 states — Look up any contractor's license status, sourced directly from state government licensing boards. Ohio OCILB records are checked nightly.
Nightly monitoring — Get alerts when a sub's license expires, gets suspended, or changes status. Changes are typically detected within 24 hours.
Insurance and workers' comp tracking — Track COI expirations, coverage gaps, and carrier information alongside license data.
Compliance dashboard — See your entire sub roster's license and insurance status in one place, with audit-ready reports.
$0 for subcontractors — Subs are never charged. The GC pays for the platform. This is fundamentally different from legacy platforms that charge each sub $300–$600+ per year.

With HB 246 adding E-Verify to the compliance stack, GCs now have one more thing to track. TradeProof keeps the license and insurance side organized so you can focus on E-Verify enrollment, record-keeping, and subcontract clauses. Set up takes under 15 minutes.

A Violation Costs $25,000. A Compliance Check Costs $0.

Look up any Ohio contractor's license and insurance status in seconds. 2.5M+ records sourced from government databases. Set up in under 15 minutes.

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Frequently Asked Questions

Ohio E-Verify FAQ

The E-Verify Workforce Integrity Act (HB 246) takes effect on March 20, 2026 — 90 days after filing with the Ohio Secretary of State. Governor DeWine signed the bill on December 19, 2025. All nonresidential construction contractors, subcontractors, and labor brokers must be enrolled in E-Verify and creating cases for new hires by that date.

No. HB 246 applies only to nonresidential construction. Residential construction, agricultural structures, and manufactured or industrialized homes are explicitly excluded. If your company exclusively does residential work, the law does not apply to you. However, if you do any nonresidential work, you must use E-Verify for new hires on those projects — and in practice, most companies apply E-Verify to all new hires once enrolled.

No. The law requires E-Verify cases only for new hires after the effective date (March 20, 2026). Existing employees hired before that date are not subject to the E-Verify requirement under HB 246. However, federal Form I-9 requirements still apply to all employees, and you should ensure your existing I-9 records are up to date.

No. HB 246 does not include a size-based exemption. Every contractor, subcontractor, and labor broker performing nonresidential construction work in Ohio must use E-Verify, regardless of the number of employees. A one-person shop hiring their first employee has the same obligation as a large enterprise.

If E-Verify issues a Final Nonconfirmation (FNC), you must terminate the employee's employment. Continuing to employ a worker after receiving an FNC is a separate violation under HB 246, with penalties of $5,000 (first offense), $10,000 (second within 3 years), or $25,000 (third+ within 3 years) per violation. Before an FNC is issued, the employee has 10 federal government working days to decide whether to contest a Tentative Nonconfirmation, and if they choose to contest, 8 federal government working days to visit SSA or contact DHS — you cannot take adverse action during that period.

Yes. Any person may file a complaint with the Ohio Attorney General's office alleging that a contractor or subcontractor has violated the E-Verify requirements. Complaints can be filed anonymously. The AG investigates and may bring enforcement actions including fines and debarment from public contracts.

HB 246 does not impose direct statutory liability on GCs for sub violations. Each employer is individually responsible for their own E-Verify compliance. However, GCs face significant indirect risk: project delays from sub enforcement actions, reputational harm, and limited contractual recourse if your sub agreements do not address E-Verify. The industry best practice is to require E-Verify compliance in all subcontract agreements and collect sub E-Verify Company IDs.

Under federal I-9 retention rules (8 CFR 274a.2, which also apply to associated E-Verify records), you must retain case records for 3 years after the hire date or 1 year after termination, whichever is later. Keep confirmation numbers, case results, and any TNC/FNC correspondence. Store these records in a way that's retrievable for audits — either within the E-Verify system or in your own HR document management.

Register at e-verify.gov. You will need your company's legal name, EIN (Employer Identification Number), NAICS code (236220 for commercial construction), and a designated point of contact with their email and phone number. After completing the online enrollment (which takes about 30 minutes and must be completed in one session), you will receive a Company ID and can begin creating cases. Do not wait — register now so your team is trained and ready on the effective date.

Form I-9 is a federal requirement for all employers to collect and examine documents confirming a new hire's identity and work authorization. E-Verify is an electronic system that cross-checks I-9 data against DHS and SSA databases for additional confirmation. Under HB 246, Ohio nonresidential construction employers must do both: complete the I-9 (as always) and submit an E-Verify case for each new hire within 3 business days of the start date. E-Verify does not replace the I-9 — it supplements it.

A violation costs $25,000. A compliance check costs $0.

Don't Wait Until March 20

After the effective date, any person can file an anonymous complaint with the Ohio AG. Get your subcontractor license and insurance data organized now.

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Check My Compliance Free

No credit card · 15-minute setup