The 2025 Adverse Effect Wage Rates (AEWR) are expected to be published in the Federal Register soon.  This generally occurs at the end of the year.  The AEWR is the minimum hourly wage an H2A worker can be paid.  The AEWR is established using the USDA National Ag Statistics Service (NASS) Farm Labor Survey (FLS) each year.  The law that established the H-2A program states that the importation of foreign workers shall not have an ‘adverse effect’ on local wages.  Domestic wages cannot be reduced by using cheaper foreign workers.  This is why the AEWR was established.

The Farm Labor Survey results have been published, and the applicable results from our area are shown below:

TX         current rate $15.55             new rate $15.79                  inc 1.52%

NM        current rate $16.32             new rate $17.04                  inc 4.23%

KS          current rate $18.32             new rate $19.21                  inc 4.63%

We expect that the new AEWR’s will match these values.

These new wage rates will take effect after they are published in the Federal Register.  The exact day they go into effect is a little unclear at this point.  If you have any H-2A workers on staff at the beginning of the year, you must increase their wages to this new rate regardless of current contract terms.  The AEWR applies to various classifications which include 45-2091 (Agricultural Equipment Operators).  This is the classification for most of the H-2A workers in the cotton gins.

As some of you may recall, employers used to have a 14-day grace period after the wages were published in the Federal Register before converting to the new wage rate.  Earlier this year, the Department of Labor (DOL) instituted a Farmworker Protection rule.  One of many requirements in this rule was the elimination of the 14-day grace period.  Per this rule, employers are required to pay the new AEWR on the day the wages are published.  There are currently multiple court cases challenging the Farmworker Protection rule.  Specifically, a case in the US District Court for the Southern District of Georgia issued a preliminary injunction in a case prohibiting the DOL from enforcing the final rule.  There are 17 states affected by this ruling: Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, Tennessee, Texas, and Virginia.  The DOL is now handling H2A processing differently in these 17 states as this case continues through the courts.  If the DOL is successful, employers will be required to pay the wages at the Federal Register publish date.  If not, the 14-day grace period will remain in effect.  As of today, the 14-day grace period remains in effect for the 17 states affected by the ruling.

If you will have H-2A employees on staff at the beginning of 2025, you need to keep a close eye on this issue to determine the most appropriate date to apply the new AEWR’s.  If you will let us know, we will be sure to keep you informed as the court cases referenced above progress over the next few weeks.

As always, we will keep you updated as more information is released on this case and others.  Please contact us if you have questions about this, or any other issues affecting your operation.