E-Verify requirement for nonresidential construction employers
Ohio requires nonresidential construction contractors, subcontractors, and labor brokers to verify the employment eligibility of each employee hired to perform work on a nonresidential construction project through the federal E-Verify program. The requirement takes effect March 20, 2026. A limited exception applies if the employer has previously verified an employee through E-Verify and federal law does not require reverification. Employers must retain verification records for three years after the date of hire or one year after the date of termination, whichever is later. The mandate does not apply to residential construction, industrialized units, manufactured homes, or mobile homes.
Source: Ohio Rev. Code § 4151.02
Ban-the-box restriction for public employers
Ohio prohibits public employers from including any question about an applicant’s criminal background on initial application forms. This took effect March 23, 2016, under the Ohio Fair Hiring Act (Ohio Revised Code § 9.73), and applies across state agencies and political subdivisions (counties, townships, municipalities, school districts). Public employers may ask about criminal history later in the process—during interviews or after selecting candidates—and may use that information when making final decisions. The law doesn’t ban consideration of criminal records outright; it just delays the inquiry so candidates are evaluated first on their qualifications.
Ohio Revised Code § 9.73(C) permits public employers to include a general notice on applications about disqualifying convictions under state or federal law—schools, for instance, may warn of statutory bars for roles with youth contact. The Act also protects classified civil‑service incumbents: their pre‑employment felony convictions cannot be held against them unless the felony occurs during public service employment.
Ban-the-box rules for private employers and local ordinances
Local ban-the-box ordinances in Ohio overwhelmingly apply only to public sector employers or, in some cases, to private employers with municipal contracts. As of June 17, 2026, official city codes for Akron, Cleveland, Dayton, and Toledo show their ordinances apply only to city hiring or to city contractors, not to private-sector employers in general. Columbus and Cincinnati extend their ban-the-box ordinances to city contractors and, in certain circumstances, to employers who receive city tax incentives. No Ohio city extends a ban-the-box mandate to all private employers within city limits as of this date. Always consult the official city or municipal government site for the latest requirements if contracting with a specific Ohio municipality.
Source: Ohio Rev. Code § 9.73
Ohio E‑Verify final nonconfirmation termination — final wage timing obligations
When a nonresidential-construction employer in Ohio receives an E-Verify Final Nonconfirmation (FNC)—a definitive notice from the federal system that work authorization cannot be confirmed—Ohio law requires the employer to immediately terminate that employee. This "immediate termination" rule is explicit: the employer "shall not continue to employ" the person after FNC, per Ohio Rev. Code § 4151.03.
But this mandate does not alter the timeline for issuing final paychecks under Ohio's wage payment statute. Ohio Revised Code § 4113.15 requires discharged employees to receive their final wages either (a) on the next regularly scheduled payday, or (b) within 15 days of termination—whichever arrives first. There is no exception in the wage law for E-Verify FNC or for involuntary terminations triggered by immigration status.
Summary for practitioners:
- Termination must be immediate upon FNC (R.C. § 4151.03).
- Final wage payment must follow the ordinary rule: next regular payday or within 15 days, per R.C. § 4113.15.
- There is no provision allowing immediate withholding, delay, or acceleration of final pay due to E-Verify FNC termination. The employer must process pay in the usual cycle, even if the separation is abrupt.
The result is that Ohio nonresidential-construction employers should have a process to promptly effectuate terminations when an FNC issues, but must then pay earned wages consistent with the existing, generally applicable payout timeline for any separation.
Source: Ohio Rev. Code § 4151.03 Source: Ohio Rev. Code § 4113.15
Ohio § 4151.02–.06 — Penalties & Enforcement for E‑Verify Noncompliance in Nonresidential Construction
Ohio law (effective March 20, 2026) requires nonresidential construction contractors, subcontractors, and labor brokers to verify each new hire’s identity and work authorization via the federal E‑Verify system (Ohio Rev. Code § 4151.02(A)) and prohibits continuing employment after receiving a “Final Nonconfirmation” (§ 4151.03). The Ohio Attorney General handles enforcement under § 4151.04 with escalating civil penalties, debarment from state contracts, hearing rights, and referral for civil action and license revocation.
• Notice & investigation The Attorney General investigates complaints supported by “sufficient facts” under § 4151.04(A). If reasonable evidence of violation is found, the AG issues a Notice of Violation. This notice requires proof of lawful employment within 10 days; states the assessed penalty under § 4151.04(E); and, for likely willful (two or more) violations, warns of debarment from bidding or participating in state contracts for up to two years (§ 4151.04(D)).
Source: Ohio Rev. Code § 4151.04(D)
• Civil penalties The penalty schedule is tiered, based on violation type and recency:
- For failure to use E‑Verify (§ 4151.02):
• 1st offense: $250 per violation • 2nd offense (within 3 years): $1,000 per violation • 3rd+ offense (within 3 years): $1,500 per violation
- For continuing employment after Final Nonconfirmation (§ 4151.03):
• 1st offense: $5,000 per violation • 2nd offense (within 3 years): $10,000 per violation • 3rd+ offense (within 3 years): $25,000 per violation
Source: Ohio Rev. Code § 4151.04(E)(1)–(3)
• Hearing & enforceable order The employer has 10 business days after service of the notice to request an adjudicatory hearing before the Director of Commerce (§ 4151.04(F)). If no hearing is requested, the notice becomes a final enforceable order.
Source: Ohio Rev. Code § 4151.04(F)
• Debarment & eligibility reinstatement If a final enforceable order includes debarment, the Attorney General forwards it to the Director of Administrative Services, who adds the entity to a state‑contract ineligibility list under § 4151.05. After the debarment period, reinstatement requires filing a sworn affidavit certifying no further violations during the disqualification period. Notably, removal from the list is not automatic if penalties remain unpaid.
Source: Ohio Rev. Code § 4151.04(G); § 4151.05(C)
• Civil action upon non‑compliance If the entity fails to comply with the enforceable order within 30 days, the Attorney General may file civil action in county court under § 4151.05. The AG may allege violations of § 4151.06 (license revocation) as well.
Source: Ohio Rev. Code § 4151.04(H); § 4151.05(A)
• Permanent license revocation Upon court finding that a contractor “knowingly employed an unauthorized alien,” the court must order permanent revocation of the applicable business license(s) at the work‐location level—or, if none specific to that location, those held at the primary business location (§ 4151.06(A)). The court relies only on the federal immigration status determination under 8 U.S.C. § 1373(c), which carries a rebuttable presumption of lawful status.
Source: Ohio Rev. Code § 4151.06(A)–(B)
Ohio new-hire reporting — timing and required information
Ohio employers must report each newly hired or rehired employee to the Ohio Department of Job and Family Services (ODJFS) no later than 20 calendar days after the employee begins work for pay. The same 20-day rule applies to independent contractors: report within 20 days after the contractor begins services or resumes work under a contract. This requirement tracks the statutory language in Ohio Revised Code § 3121.893(A)-(B).
Required information. The new-hire report must include:
- For employees: full legal name, address, date of birth, Social Security number, and date of hire.
- For contractors: name, address, Social Security number (or federal EIN), the date payments begin, and expected duration of services if known.
- Employer details: name, address, and federal Employer Identification Number (EIN).
The report must be made on a form prescribed by ODJFS, which may allow electronic submission. The agency's website and statute clarify that employers with employees in multiple states can designate one state for all reporting (the "multi-state employer" rule) if they transmit electronically and notify HHS as required.
Purpose of reporting. These reports feed into Ohio’s New Hire Directory and the federal directory. The data enables prompt establishment or enforcement of child support orders and is used to detect and prevent improper payments in unemployment insurance, Medicaid, and other public assistance programs. (Ohio Rev. Code § 3121.898)
Source: O.R.C. § 3121.893 Source: O.R.C. § 3121.892 Source: O.R.C. § 3121.898
Definition of “nonresidential construction project” — Ohio E-Verify mandate
Ohio law defines a “nonresidential construction project” for purposes of the E-Verify hiring mandate under Ohio Rev. Code Chapter 4151. This phrase is explicitly defined in Ohio Rev. Code § 4151.01(G), effective March 20, 2026.
Definition. A “nonresidential construction project” means:
> “The construction or renovation of any building, highway, bridge, utility, or related infrastructure.”
This broad category covers not only traditional commercial construction (for example, office buildings, shopping centers, warehouses), but also extends to highways, bridges, utilities (such as water, electric, sewer, and similar public or private services), and infrastructure connected thereto.
Key exclusions. The following projects and settings are NOT covered as “nonresidential construction projects” for E-Verify purposes:
- A project involving an industrialized unit, manufactured home, or a residential building, as defined more fully in Ohio Rev. Code § 3781.06.
- Construction or renovation of a building or structure incidental to agricultural purposes (see § 3781.06 for details).
- A mobile home, as defined in § 4501.01.
No further examples or case illustrations. The statute does not enumerate individual examples like “office building” or “restaurant,” but by including “any building,” the legislature signals coverage of most nonresidential construction activity except for the detailed exclusions above. For residential versus nonresidential status, practitioners should consult the referenced sections (§ 3781.06 and § 4501.01) for technical definitions.
Source: Ohio Rev. Code § 4151.01(G) Source: Ohio Rev. Code § 4151.02