Federal court rules H-2A agricultural wage methodology unlawful

A federal district court in California has ruled that the U.S. Department of Labor’s (DOL) 2025 methodology for calculating Adverse Effect Wage Rates (AEWR) under the H-2A guest worker program is unlawful. U.S. District Judge Kirk E. Sherriff found that the rule, implemented during the Trump administration, failed to adequately justify how it would ensure that hiring foreign workers would not adversely affect the wages of U.S. farmworkers.

The challenged rule had reduced wages for H-2A workers by as much as $7 per hour in some states. Advocates, including the United Farm Workers (UFW) and the UFW Foundation, argued the cuts would undercut domestic labor markets. While the court did not immediately vacate the current rule to avoid immediate disruption to the agricultural sector, it ordered the DOL to promptly develop and publish a new, legally compliant wage methodology.

Agricultural employers face potential financial uncertainty, as the judge directed the DOL to notify them that they may be responsible for backpay to workers if the newly established rates exceed what was previously paid. The decision follows a lawsuit filed by 18 farmworkers and several labor organizations, supported by various state attorneys general and members of Congress.