On Monday, the Department of Labor announced their final rule on wage calculation changes for the Adverse Effect Wage Rate (AEWR), which governs the pay structure for H-2A visa holders. The rule largely mirrors what was originally proposed last year, something that California Farm Bureau, AFBF, and other ag organizations were critical over in submitted comments. Unfortunately, the final rule would go ahead with their proposals to essentially increase wages for certain worker-type categories within the H-2A structure. Under this new system, for instance, workers that carry out partial truck-driving duties as part of their work could likely be considered a full time truck driver. This would come with a higher hourly pay rate (unless your current contract pays them equally to general farmworkers).
There are still questions on just what this threshold will look like exactly; however, most employer-backed groups have been critical of the majority of the rule. Groups such as the International Fresh Produce Association and Agricultural Workforce Coalition put out releases criticizing the faulty reasonings supported by the DOL. Unfortunately, H-2A employers are all too familiar with the ever-increasing costs and regulations associated with contracting foreign employees. The current pay structure’s reliance on outdated labor statistics also has artificially driven up the annual wage increases. CAFB will continue working with partner organizations in finding ways to address the latest developments. Our long support of the Farm Workforce Modernization Act would have done much to help avoid this situation if it were passed last year.
With an effective date of March 30th, the rule gives little room for recourse for farmers and farming organizations opposed to the original proposal. A link to the final rule is below; however, please note the Federal Register’s online portal has been down much of this week.
