By: NATHAN STUEDLE
A federal court ruling is creating new uncertainty over wages in the H-2A agricultural guestworker program. A federal district court in California ruled August 25 that several provisions of a 2025 Labor Department rule changing the Adverse Effect Wage Rate were unlawful. The court questioned the rule’s two-tier wage system, a housing-related wage adjustment, the use of Bureau of Labor Statistics data and provisions covering workers performing multiple job duties.
However, the judge did not immediately throw out the rule. That means current H-2A wage rates remain in effect while the Labor Department develops a replacement methodology. The ruling could eventually create another concern for farm employers: backpay. If replacement wage rates are higher than current rates, employers could potentially face additional wage obligations. For now, agricultural employers are being advised to continue paying existing H-2A rates and maintain detailed payroll records while the case moves forward.