US federal court ruling on H-2A agricultural wages

A federal district court in California ruled that the U.S. Department of Labor’s methodology for calculating Adverse Effect Wage Rates (AEWR) under the H-2A guest worker program is unlawful. Judge Kirk E. Sherriff determined that the rule, implemented during the Trump administration, was “arbitrary and capricious” and failed to adequately justify how it would prevent foreign worker hiring from adversely affecting the wages of U.S. farmworkers.

The ruling addresses changes that had reduced wages for H-2A workers by approximately $5 to $7 per hour, or about 15 percent. While the court did not immediately vacate the current rule to prevent agricultural sector disruption, it ordered the Department of Labor to develop and publish a new, legally compliant wage methodology within two weeks.

The decision has prompted conflicting reactions. Labor advocates, such as the United Farm Workers, supported the ruling as a means to ensure fair pay. However, the National Council of Agricultural Employers expressed disappointment, claiming the decision could return rural areas to a “crisis situation” due to potentially inflated wage mandates. The court also noted that the ruling could have retroactive implications, potentially requiring employers to pay back wages to both guestworkers and domestic farm workers.