A federal court ruling is casting uncertainty over recent reforms to the H-2A agricultural guestworker program, while leaving current wage rates in place for now.
This comes after a federal district court in California ruled that key provisions of a 2025 U.S. Department of Labor interim final rule revising the Adverse Effect Wage Rate, or AEWR, were unlawful because the agency failed to adequately justify several changes and bypassed portions of the public rulemaking process.
The court challenges a new two-tier wage system, a housing-related wage adjustment, the use of Bureau of Labor Statistics data in wage calculations and a rule governing mixed-duty jobs.
However, the judge declined to immediately vacate the rule, allowing current H-2A wage rates to remain in effect while the Labor Department develops a replacement methodology.
The ruling also raises the possibility of future backpay obligations for employers if revised wage rates exceed current levels.
