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New Ohio Reporting Requirements for Non-Residential Contractors

Client Alert

Effective March 19, 2026, nonresidential construction companies must verify the employment eligibility of each employee hired to perform work on a project throughout the State of Ohio. Ohio’s E-Verify Workforce Integrity Act (the “Act”) requires E-Verify participation for nonresidential construction companies, subcontractors, and labor brokers for nonresidential construction.

E-Verify is a records maintenance portal that allows confirmation of employment eligibility by comparing information entered by the employer to records available to the U.S. Department of Homeland Security and the Social Security Administration. E-Verify will not replace current reporting databases that companies already utilize; it will be an additional, required submission by the employer.

The Act mandates participation by companies that complete nonresidential projects in the State of Ohio regardless of their employee count. The Act defines a nonresidential construction project as “the construction or renovation of any building, highway, bridge, utility, or related infrastructure.” Importantly, contractors constructing industrialized units, manufactured homes, residential buildings or mobile homes will not fall within the purview of the Act.

The Ohio Attorney General is entrusted with the enforcement of the Act. Penalties for violations range between $250 and $25,000, with such monetary penalty possibly accompanied by an order rendering the contractor ineligible to bid or participate in any future state contract for a period of two (2) years.

There are competing interpretations of the Act surrounding whether a contractor must create E-Verify cases for existing employees whose work authorization is subject to reverification under federal law. Definitive guidance has not been provided as of the date of this Client Alert, but construction companies are encouraged to seek formal guidance on how to ensure compliance with Act.

For questions regarding Ohio’s E-Verify Workforce Integrity Act and how your business should prepare for these new requirements, please do not hesitate to contact BMD Member Bob Hager at rahager@bmdllc.com or Attorney Jacob Davis at jrdavis@bmdllc.com.


Ohio Med Spas: Peptide Do's and Do Not's

Recent guidance from the Ohio Board of Pharmacy outlines key compliance requirements for med spas using peptides. While some peptide drugs are FDA approved, others are not or cannot be compounded. Med spa operators should ensure they source medications from licensed suppliers, avoid non-approved or “research use only” products, and follow all compounding and storage regulations to maintain compliance and avoid enforcement actions.

Substance Use Disorder Providers: 42 CFR Part 2 Now Enforceable

Updates to 42 CFR Part 2 are now enforceable, bringing significant changes to how substance use disorder (SUD) records are handled. The Final Rule aligns Part 2 more closely with HIPAA, introduces updated penalties, allows a single patient consent for treatment, payment, and operations, and adds new requirements for Notices of Privacy Practices. It also creates a formal definition of SUD counseling notes and imposes strict consent requirements for their use and disclosure. Providers should review and update policies to ensure compliance.

AAA Introduces AI-Assisted Arbitrator for Certain Disputes

The American Arbitration Association has introduced an AI-assisted arbitration platform designed to streamline certain document-based disputes. While a human arbitrator still makes the final decision, the technology can improve efficiency, reduce costs, and accelerate case resolution. Companies should weigh these benefits against considerations such as transparency, risk, and contractual requirements before adopting AI-assisted arbitration.

Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.

DOT Non-Domiciled CDL Rule

A new rule from the Federal Motor Carrier Safety Administration (FMCSA) will significantly narrow eligibility for non-domiciled Commercial Driver’s Licenses (CDLs) beginning March 16, 2026. The rule limits eligibility to holders of H-2A, H-2B, and E-2 visas and eliminates Employment Authorization Documents (EADs) as qualifying proof of work authorization. As a result, many lawfully present and work-authorized immigrants, including refugees, asylees, DACA recipients, and Temporary Protected Status holders, will no longer be able to obtain or renew a non-domiciled CDL. The change is expected to affect roughly 194,000 drivers nationwide and has prompted multiple legal challenges, including a pending emergency stay request before the United States Court of Appeals for the District of Columbia Circuit.