What Happened?
A federal court found portions of the Labor Department's H-2A farmworker wage methodology procedurally defective and arbitrary, and ordered a replacement by Dec. 30, while the current rules remain in effect. The Congressional Research Service (CRS) published a report on the new adverse effect wage rate methodology for temporary H-2A farmworker visas.
The H-2A program lets U.S. employers bring in foreign agricultural workers temporarily when they cannot find enough domestic workers. Federal law requires the Department of Labor (DOL) to find that H-2A farm employment will not adversely affect the wages and working conditions of similarly employed U.S. workers, but the law does not specify a method for making that finding.
The Department of Labor issued the current wage-rate methodology on an emergency basis in October 2025, bypassing usual procedures, and a federal court in California found its challenged portions procedurally defective and arbitrary, ordering DOL to replace it by Dec. 30.
Why Does it Matter to Me?
The Labor Department's wage methodology is meant to ensure that hiring foreign guest workers under the H-2A program does not adversely affect the wages of similarly employed U.S. workers.
Under the methodology now ordered replaced, entry-level AEWRs for field and livestock worker occupations, which cover the vast majority of certified H-2A jobs, ranged from $8.84 per hour in Mississippi to $14.91 per hour in Nebraska. For experienced field and livestock workers, the wage rate ranged from $13.41 per hour in Florida to $19.22 per hour in Nebraska.
A DOL notice said no employer is currently required to pay back wages, though some may later have to adjust pay if new applicable rates come in higher. A May 2024 study by economist Zachariah Rutledge estimated that freezing the AEWR for one year would reduce wage growth for domestic farmworkers by as much as $475 million.
Both Sides, Now
Supporters of the current administration's approach argue the emergency rules were necessary to fill a sudden regulatory gap. In August 2025, a federal court in Louisiana vacated the Labor Department's 2023 wage rule, which used Farm Labor Survey data. Three days later, the National Agricultural Statistics Service announced it was canceling that survey. DOL said it would continue to defend its position in court while developing a replacement rule.
Opponents warn that weakening the wage floor harms the American farmworkers the law is meant to protect. The study found that restraining the AEWR can suppress domestic farm wages. The U.S. Department of Labor said it was seeking to distribute $132,000 in recovered wages to more than 600 H-2A workers of a large South Carolina produce grower, or roughly $220 per worker. The Immigration and Nationality Act requires DOL to find that H-2A employment will not hurt wages for similar U.S. workers, but it does not specify how to calculate that wage.
What Happens Next?
The Oct. 2 court order gave DOL 89 days, running to Dec. 30, to issue a replacement interim final rule, the same date the current rule's vacatur takes effect. If DOL issues a new rule, some employers may need to adjust wages depending on whether the new rates are higher than what they are currently paying. DOL must publish a replacement rule by Dec. 30 for any new wage methodology to take effect without a gap in legal authority. Will the new rates land higher or lower than the ones a court just threw out?
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