Ohio's recent mandate requiring nonresidential construction employers to use E-Verify marks a significant shift in employment verification within the state. Previously, Ohio did not impose a statewide E-Verify requirement on this sector, leaving employers with discretionary use of the system. Now, all employers in nonresidential construction must electronically verify the employment eligibility of newly hired employees, effective from the enforcement date.

Attorney Insight
From our experience serving Chinese enterprises and investors with U.S. operations, such regulatory changes directly impact compliance strategies, especially for companies expanding construction or infrastructure projects in Ohio. Non-compliance risks include monetary penalties and potential loss of state contracts, which can delay project timelines and increase costs.

Specifically, under 8 CFR §274a.2(b)(1)(viii), the E-Verify program requires employers to confirm the identity and employment eligibility of new hires within three business days of hire. The Ohio law aligns with this federal requirement but makes it mandatory for all nonresidential construction employers, regardless of company size.

We have recently assisted a Chinese construction firm planning to open a U.S. subsidiary in Ohio. Prior to this mandate, the client was not enrolled in E-Verify for their construction crew. After the law took effect, we guided them through immediate E-Verify enrollment and updated their onboarding processes to include electronic verification within the required timeframe. This proactive approach prevented delays in hiring and ensured compliance with both federal and state regulations.

Actionable steps for companies in this sector include: 1) Registering with E-Verify at the official USCIS portal without delay; 2) Training HR personnel on the new verification process and timelines; 3) Auditing current hiring practices to identify gaps and document compliance. Additionally, companies should monitor employee status continuously to avoid inadvertent violations.

From a broader perspective, this requirement may affect L-1 and EB-1C clients who plan to transfer or establish managerial positions in Ohio-based construction subsidiaries. Ensuring E-Verify compliance becomes part of the operational due diligence and risk management. For investors under EB-5 programs involved in construction projects, this compliance also safeguards the project’s eligibility and reputation.

Attorney Insight
In conclusion, the new Ohio E-Verify mandate creates an operational necessity for nonresidential construction employers to integrate electronic employment verification into their HR workflows. Based on our practice, early adaptation not only avoids penalties but also streamlines hiring and supports long-term project success. We recommend clients verify their current compliance status immediately and consult with immigration counsel to align their employment verification with immigration filings and business plans.