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.