If you weren’t paying close attention, you may have missed the passage of Ohio’s House Bill 246, or the E-Verify Workforce Integrity Act. This will require all Ohio nonresidential contractors, subcontractors, and labor brokers to confirm employees’ work eligibility through the federal E-Verify program.

Nonresidential construction is defined in HB 246 as:

“…The construction or renovation of any building, highway, bridge, utility, or related infrastructure, but does not include any of the following:

(1) An industrialized unit, manufactured home, or a residential building as defined in section 3781.06 of the Revised Code;

(2) A building or structure that is incidental to the use of the land on which the building or structure is located for agricultural purposes as defined in section 3781.06 of the Revised Code;

(3) A mobile home as defined in section 4501.01 of the Revised Code.”

Included employers are expected to be fully compliant with the E-Verify requirement by March 19, 2026. There are currently no exceptions being made for small businesses or sole proprietors, and E-Verify is a free service.  Employers will enroll at www.e-verify.gov and create a new case for each new hire by entering info provided on their I-9 and should receive initial results in seconds. Once a final eligibility result is obtained, employers may close that employee’s case. The Act requires employers to maintain this verification record for three years or one year post-termination, whichever is longer.

So, what about employees that do not receive that confirmation? HB 246 dictates that if the employee’s work status cannot be verified (also called a “final non-confirmation”), the employer must terminate that individual. Not doing so can result in severe monetary penalties (see below).

This requirement does not seem to apply to current employees who are citizens and not subject to reverification, like green card and certain visas may be. Although, several attorneys have cited that the bill’s language is a bit ambiguous.

Ohio’s Attorney General (AG) will investigate violations through formal and anonymous complaints. If the AG finds your business in violation, you’ll have ten days to request a hearing. Failure to respond in time can also result in a final, enforceable order.

Being the recipient of an enforceable order or losing at a hearing can be harsh and costly:

Failure to Use E-Verify: Fines start at $250, increasing to as much as $1,500 for subsequent violations within three years.

Failure to Terminate: Continuing to employ an individual after final non-confirmation, fines escalate to $25,000 per violation for repeat offenses.

Disqualification: If the AG finds that an employer committed two (or more) willful violations, they can be disqualified from bidding on or participating in any state contracts for up to two years.

If an employer fails to comply with an order within 30 days, the AG can also bring civil action against that business. If a court determines the employer violated the law, then additional, heavier penalties may be levied.

Monetary: The court will validate the AG’s penalties and tack on another $1000 for each violation.

Disqualification: The court will disqualify employer from bidding on or participating in any state contracts for up to two years.

Business License Revocation: If the court finds that a contractor, subcontractor or labor broker knowingly hired an unauthorized immigrant, the court may order the permanent revocation of the business license specific to that location or the firm’s primary place of business.

State agencies issuing contracts for construction projects are required to include language regarding compliance with the new E-Verify law. You can read the language for HB246 as passed here. While SuretyHR’s team cannot directly assist with the use of E-Verify, we are exploring how this could be integrated with our payroll and HRIS software, PrismHR. If you have any questions about your current staff as it relates to immigration law, please consult a business-focused immigration attorney.