Key Points of the New E-Verify Rules That Builders Must Know in 2026

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Builders in Ohio are about to face a new compliance hurdle when it comes to hiring. Starting March 19, all contractors working on public improvement projects for state agencies and political subdivisions, as well as non-residential contractors, mustregister for and use the federal E-Verify program. The system allows employers to confirm the employment eligibility of new employees against federal records from the Department of Homeland Security and the Social Security Administration.

Attorneys told Construction Dive that E-Verify can ultimately help employers, but it also comes with some concerns.

"There's no question that E-Verify is a better tool than just eyeballing and saying, 'Yeah, I think this is a good document or a bad document,'" said Bruce Buchanan, senior counsel at Littler Mendelson in Nashville.

The consequences of getting it wrong are also severe. According to a post on the JD Supra blog by attorneys Alyson Waite and Margarita Krncevic of Benesch, fines in Ohio can reach up to$25,000, and contractors could be banned from bidding on state contracts for up to two years for multiple willful violations if they fail to act on a final nonconfirmation result.

Additionally, if a contractor hires employees they know to be unauthorized, it could lead to the permanent revocation of their business license.

Given these potential consequences, attorneys note that staying organized and showing good-faith compliance can go a long way as E-Verify matures and more states enact programs mandating its use by builders.

The state of E-Verify

When Ohio's law takes effect, 25 states will have some form of E-Verify rule in place, said Yane Park McKenzie, an associate at Troutman Pepper Locke's Atlanta office. However, many of these rules have subtle differences that require business owners to pay close attention — a company may not need to register for E-Verify in one state but may need to in another.

Take Florida, for example. Private employers in the Sunshine State with 25 or more employeesmust register for E-Verify. However, in neighboring Alabama, all private employers, regardless of size, according to accounting firm OnPay,must use E-Verify。

Adding to the complexity, municipalities can also enact their own laws. For example, Hernando County, Florida, requires all contractors and subcontractors doing business in the county to use E-Verify.

McKenzie said she has advised large contractor clients to use E-Verify nationwide, or on a state-by-state basis.

Alexandra LaCombe, a partner at Fisher Phillips in Detroit, said one of the most important things she tells clients is that E-Verify does not replace thetraditional I-9 process, the documentation used to record an employee's eligibility to work in the U.S. Instead, it is a supplement.

"Just because you're enrolled in E-Verify and you're screening people through E-Verify doesn't mean that you can stop or should stop filling out the I-9 form," LaCombe said.

Protecting your business

Ohio's legislation comes amidthe Trump administration's immigration crackdownandbacklash against enforcement actions by Immigration and Customs Enforcement officers. At the same time, the construction industry faces a persistent labor shortage,needing 349,000 workers to meet current demand。

The implications for contractors are clear —about 34% of construction industry workers are immigrants. In some trades, that number can be as high as 61%, Ken Simonson, chief economist at the Associated General Contractors of America, told Construction Dive in January.

McKenzie added that builders should be aware that the Trump administration's immigration focus will not let up.

"The reality is this administration is really cracking down, and I think for the remaining three years, they're really going to go after employers on worksite compliance issues," McKenzie said.

She said regular internal audits and having an E-Verify point person to handle the process can help. It's important to designate a compliance officer to oversee E-Verify rather than having different people handle it on each project.

"I think that can lead to lower levels of compliance or issues like inconsistent documentation," McKenzie said.

Additional protection can also come from ensuring other companies, including staffing agencies and subcontractors, are acting as required.

"Many construction employers sometimes use staffing agencies, but staffing agencies don't act as a shield to protect employers from all liability," said Chris Caravello, an associate at Fisher Phillips in Denver.

Caravello advises contractors to include strong provisions in their contracts with staffing agencies to ensure those companies are also conducting regular I-9 audits. If they don't, it may be worth finding other suppliers to ensure both the company and any suppliers are compliant.

Although Ohio's law on paper should protect contractors from liability for their subcontractors, McKenzie recommends similar "flow-down" provisions for subcontractors' E-Verify compliance. She also cautions that builders should not review subcontractors' I-9 forms due to privacy concerns. McKenzie said contractors are responsible for I-9 compliance within their own businesses.

Littler's Buchanan made a similar point — by registering for E-Verify, contractors don't need to dig deep into the documents workers submit, while avoiding privacy issues.

"It really lets the government take a peek at your workforce," Buchanan said.

For example, green cards change frequently, which can lead builders who try to do their own deep dive into documents to run into problems they didn't need to have, Buchanan said. If an employer discards documents and an employee is a citizen, it could lead to discrimination claims.

"I always get concerned when employers think they know enough about documents," Buchanan said.

But making an effort to comply with the law can help builders in the long run, said Asafu Suzuki, senior attorney at Vorys, Sater, Seymour and Pease in Columbus, Ohio. While the penalties may seem harsh, they target what she calls "bad actors."

"Good-faith compliance really goes a long way, especially when the law is just starting out and the state is also figuring things out," Suzuki said.