Key Takeaways
- Ohio House Bill 246 takes effect March 20, 2026, mandating E-Verify use for non-residential construction employers.
- Non-compliance can result in court-imposed fines, loss of state contracts, and suspension or revocation of business licenses.
- The law applies to contractors, subcontractors, and labor brokers — your exposure doesn’t stop at your own payroll.
- Companies should act now to confirm E-Verify enrollment, update onboarding processes, and review subcontractor agreements.
If you’re running a non-residential construction business in Ohio, March 20 is a date worth circling on your calendar. That’s when House Bill 246 (E-Verify Workforce Integrity Act) takes effect – and with it, a new set of mandatory E-Verify requirements that carry real consequences for employers who aren’t prepared.
What the Law Requires
Starting March 20, 2026, Ohio law requires non-residential construction contractors, subcontractors, and labor brokers to:
- Verify every new hire’s work authorization through the federal E-Verify system
- Maintain verification records for the statutory retention period
- Terminate employment following a final E-Verify nonconfirmation
The Ohio Attorney General has authority to investigate complaints and pursue enforcement through the courts, giving this law real teeth.
Who It Applies To
HB 246 covers non-residential construction broadly: commercial buildings, highways, bridges, utilities, and related infrastructure work. Residential construction is excluded.
Something else to watch out for — your compliance obligation doesn’t stop with your own employees. If you’re working with subcontractors or labor brokers who aren’t meeting these requirements, your business can still face exposure. That makes subcontractor vetting a core part of your compliance strategy.
What’s at Stake
The penalties under HB 246 are tiered, but none of them are minor:
- Court-imposed fines for failing to comply with E-Verify requirements
- Disqualification from state contracts for up to two years
- Suspension or revocation of business licenses for knowingly employing unauthorized workers
For companies that depend on public-sector work or carry significant bonding and licensing requirements, the operational impact of a penalty could be severe.
Steps to Take Now
If you haven’t already, here’s where to focus:
- Confirm E-Verify enrollment. If your company isn’t already registered, go to everify.uscis.gov and complete enrollment. It’s a federal program and free to use.
- Update your onboarding process. E-Verify must be run on each new hire. Build it into your standard I-9 workflow so it happens consistently.
- Train HR and hiring managers. Anyone involved in onboarding should understand the process, the timeline requirements, and what to do when a nonconfirmation is issued.
- Review subcontractor and labor agreements. Add language that requires E-Verify compliance and gives you a mechanism to address non-compliant partners before it becomes your problem.
- Document everything. Compliance is only as strong as your ability to demonstrate it. Keep records organized and accessible.
The Bottom Line
HB 246 is a compliance-critical change — and one that requires action from leadership, not just HR. Business owners and CFOs who stay ahead of this will protect their workforce, their contracts, and their license to operate. Those who don’t will be playing catch-up under circumstances they’d rather avoid.
Have questions about how HB 246 affects your construction business? Rea’s advisors work with Ohio contractors and construction companies across the state to navigate compliance challenges and protect business operations. Reach out to our team to start the conversation.
About the Author
John Kurtin, CPA, is a Principal and Construction Industry Leader at Rea. With more than 13 years of experience, he specializes in construction assurance services and ESOPs — and has a knack for translating complex financial concepts into plain language his clients can actually use. John is an active member of CFMA, Builders Exchange, and AICPA. He’s based in Dublin, Ohio.
