DOL Announces Rule Change for H-2A Adverse Effect Wage Rates
The U.S. Department of Labor (DOL) has issued an interim final rule that updates how adverse effect wage rates (AEWRs) are calculated for H-2A agricultural workers, marking a significant shift in wage policy for farm employers across the country.
Under the newly announced rule, the DOL will now use state-level wage data from the Bureau of Labor Statistics (BLS) instead of relying on the USDA’s Farm Labor Survey, which had previously dictated AEWRs. This change is intended to more accurately reflect market conditions and regional wage differences.
“Under the new interim final rule, the Department of Labor will base the adverse effect wage rates on state-level wage data from the Bureau of Labor Statistics rather than the USDA farm labor survey that was previously used. The change aligns wages closer to actual market conditions.”
The Georgia Fruit and Vegetable Growers Association (GFVGA) has long raised concerns about the unsustainable increases in labor costs under the previous system. According to the group, AEWRs in Georgia have increased over 30% in just the past three years.
“Growers have had an adverse effect wage rate increase of over 30% in the last three years.”
Chris Butts, Executive Vice President of GFVGA, welcomed the change:
“For years, our members have faced skyrocketing labor costs that threatened the viability of family farms in Georgia. These new wage rules bring much-needed relief and help restore balance to the H-2A program. By aligning wages with real market conditions, our growers can plan for the season with certainty. We applaud the swift action by DOL and DHS to address long-standing concerns. The leadership shown by Secretary Chavez-DeRemer and Secretary Rollins recognizes the importance of leveling the playing field for American producers so that we can continue to provide the safe and healthy fruits and vegetables to keep our country fed.”
This rule change represents a major win for U.S. growers, especially in labor-intensive sectors like fruits and vegetables, by providing more predictable labor costs and ensuring sustainable farm operations heading into the 2024 growing season.
Audio Reporting by Dale Sandlin for Southeast AgNet.