California federal court strikes down H-2A farm worker wage rule

A federal judge in California has ruled that the Department of Labor’s overhaul of the Adverse Effect Wage Rate (AEWR) for H-2A visa agricultural workers was unlawful. US District Court Judge Kirk E. Sherriff determined that the Trump administration’s Interim Final Rule, which changed how minimum hourly wages for foreign farm workers are calculated, was “arbitrary and capricious” and failed to follow necessary procedural steps, such as providing a comment period.

The ruling reverses changes that had effectively reduced wages for H-2A workers by approximately $5 to $7 per hour, or about 15 percent. The judge has ordered the Department of Labor to develop and publish a new wage calculation methodology within two weeks and to submit a status report on the process.

The decision has drawn conflicting reactions. The United Farm Workers (UFW) supported the ruling, stating it recognizes the essential work of farmworkers and ensures they are paid fairly. Conversely, the National Council of Agricultural Employers (NCAE) expressed disappointment, arguing the decision returns rural America to a “crisis situation” due to what they describe as artificially inflated wage mandates. The court also noted the decision could have a retroactive effect, potentially requiring employers to pay back wages to both guestworkers and domestic farm workers.