Last week, Governor DeWine signed into law House Bill 264, the E-Verify Workforce Integrity Act, which requires most non-residential construction contractors to utilize e-verify to confirm the legal work status of employees at Ohio Revised Code §§4151.01 et seq. The Act prohibits employers from continuing to employ individuals whose legal work status has not been confirmed by e-verify. The Attorney General shall enforce the provisions, and can receive anonymous complaints, but will not base an investigation on race, color or national origin. Notably, there is no deadline to utilize e-verify (but employers are required under federal law to complete I-9 forms within 3 days of hire) and the Act does not address the use of day laborers. Violating employers can be fined and barred from state contracts for a period of time. Knowing violations can result in the revocation of any required license to conduct business. Covered employers must maintain their records for at least three years. The Act becomes effective on March 19, 2026.
Key terms of the legislation include:
·
Sec. 4151.02. (A) Except as provided in
division (C) of this section, no nonresidential construction contractor,
subcontractor, or labor broker shall fail to verify the employment eligibility
of each employee hired to perform work on a nonresidential construction project
through the e verify program. A nonresidential construction contractor shall
use e-verify to confirm the identity and legal working status of each employee
employed by the nonresidential construction contractor. A subcontractor shall
use e-verify to confirm the identity and legal working status of each employee
employed by the subcontractor. A labor broker shall use e-verify to confirm the
identity and legal working status of each employee employed by the labor
broker.
·
(B) A
nonresidential construction contractor, subcontractor, or labor broker shall
keep a record of the verification required by division (A) of this section for
three years after the date of hire or one year after the date the employee's
employment is terminated, whichever is later.
·
(C) A nonresidential construction contractor,
subcontractor, or labor broker is not required to comply with division (A) of
this section if both of the following apply: (1) The nonresidential
construction contractor, subcontractor, or labor broker has previously verified
an employee's employment eligibility using e-verify. (2) The employer is not
required to verify or reverify the employee's eligibility to work under section
101(a)(1) of the federal "Immigration Reform and Control Act of 1986,"
8 U.S.C. 1324a(b). Sec. 4151.03.
·
No nonresidential construction contractor,
subcontractor, or labor broker shall continue to employ an individual after
receiving a notice of final nonconfirmation for that individual from the
e-verify program. For purposes of this section, a final nonconfirmation occurs
when the contractor, subcontractor, or labor broker receives a case result
indicating that an employee's employment eligibility could not be confirmed and
instructions that the contractor, subcontractor, or Sub. H. B. No. 246 136th
G.A. 3 labor broker should close the e-verify case associated with the
employee.
·
(C) "Employee" means any individual
who performs services for a contractor, subcontractor, or labor broker who
satisfies both of the following conditions: (1) The individual is subject to
the contractor's, subcontractor's, or labor broker's direction and control, not
only as to the result accomplished but also as to the details of how the work
is performed; (2) The individual receives compensation in the form of wages,
salary, or any other form of remuneration in exchange for services rendered.
·
(E)(1) "Labor broker" means any
individual or entity who hires an employee and supplies the employee's labor to
a nonresidential construction contractor or a subcontractor, regardless of
tier, through the use of a contract. (2) "Labor broker" does not
include any governmental entity or labor organization as defined in section
3517.01 of the Revised Code.
·
(F)
"Nonresidential construction contractor" means any individual or
entity that has responsibility for the means, method, and manner of
construction, improvement, renovation, or repair on a nonresidential
construction project with respect to one or more trades and who
offers, identifies, advertises, or otherwise holds out or represents that the
individual or entity is permitted or qualified to perform or have
responsibility for the means, method, and manner of construction, improvement,
renovation, repair, or maintenance with respect to one or more trades on a
nonresidential construction project.
·
(G) "Nonresidential construction
project" means 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.
·
(H)
"Subcontractor" means any individual or entity who enters into a
contract with a nonresidential construction contractor or another
subcontractor, regardless of tier, to perform work on a nonresidential
construction project.
NOTICE: This summary is designed merely to inform and alert
you of recent legal developments. It does not constitute legal advice and does
not apply to any particular situation because different facts could lead to
different results. Information here can change or be amended without notice.
Readers should not act upon this information without legal advice. If you have
any questions about anything you have read, you should consult with or retain
an employment attorney.
