A federal court ruling has created new uncertainty for agricultural employers who rely on the H-2A guestworker program, although growers should not expect an immediate change to the wages they are currently paying.
A federal district court in California has ruled that the U.S. Department of Labor’s 2025 methodology for calculating H-2A Adverse Effect Wage Rates, commonly known as AEWRs, is unlawful. The court found that key provisions of the methodology were inadequately justified and failed to meet statutory standards.
Despite the ruling, the court is allowing the current wage methodology to remain temporarily in place while the Department of Labor develops a replacement.
That means there are no immediate changes to H-2A wage rates for agricultural employers as a result of the decision.
How H-2A Wage Rates Got Here
The Department of Labor issued an interim final rule in October 2025 following significant changes to the system previously used to determine H-2A wages.
An earlier AEWR rule had been vacated by a federal court, while USDA discontinued the Farm Labor Survey that had historically provided data used in determining H-2A wage rates.
The Department of Labor responded with the 2025 interim rule, which established a new methodology and took effect immediately.
The latest court decision now requires DOL to develop another wage methodology.
Potential Backpay Is a Major Concern
One of the biggest questions for agricultural employers is what happens after new wage rates are established.
The court directed DOL to notify employers that they could potentially be responsible for backpay if newly established applicable wage rates exceed what workers were paid while the current methodology remained in effect.
The Florida Fruit & Vegetable Association says that possibility is particularly troubling because growers have been following the federal wage rules provided to them.
“Today’s decision is a reminder that lasting reform cannot come through regulation alone, and the prospect of growers facing backpay liability for complying with a federal regulation is deeply concerning,” said Jamie Fussell, director of labor relations at FFVA.
The ruling does not mean employers currently owe additional wages. Details of any potential backpay obligations will depend on the new methodology developed by DOL and additional guidance from the department.
The uncertainty is particularly significant for labor-intensive agricultural operations. H-2A wages represent a major production expense for many fruit, vegetable, nursery and other specialty crop growers, making the ability to accurately forecast labor expenses an important part of developing crop budgets.
FFVA Calls for Congressional Action
FFVA says it is reviewing the court’s decision and expects additional guidance from the Department of Labor.
The association says Florida agriculture has long sought changes that would provide growers with reliable access to a legal workforce while bringing greater predictability to H-2A program costs. Despite multiple regulatory changes, FFVA says agricultural employers continue to face legal and regulatory uncertainty surrounding the program.
The organization is again calling for Congress to pursue a longer-term legislative solution, including action on the Securing Agriculture’s Workforce Act, or SAWA.
“Congress must act with urgency to finally secure the reforms needed to the H-2A program and provide growers with certainty to continue feeding American families,” Fussell said. “Continued inaction only makes it harder to keep food production here at home.”
For now, agricultural employers should continue following the H-2A wage requirements currently in effect while watching for additional guidance from the Department of Labor.
The key takeaway for growers: current H-2A wages have not changed, but the system used to determine those wages will have to change again, and the possibility of future backpay adds another layer of uncertainty for agricultural employers.