Ag Groups Cheer Latest Decision on Adverse Effect Wage Rate Rule

A federal court in Louisiana has vacated the U.S. Department of Labor’s (DOL) 2023 Adverse Effect Wage Rate (AEWR) Methodology rule, bringing a much-needed measure of wage stability for agricultural employers.

The rule, published Feb. 28, 2023, based the H-2A program’s AEWRs on the Occupational Employment and Wage Statistics (OEWS) survey in addition to the Farm Labor Survey (FLS), applying permanent, non-agricultural wage data to seasonal agricultural jobs and subjecting growers to wage increases every six months.

For years, agricultural groups have advocated for reforms to the AEWR methodology but had to wait until the 2023 rule to challenge the AEWR in court.

Here is what some agricultural association members are saying about the latest court decision regarding AEWR.

Jamie Fussell, Director of labor relations for the Florida Fruit & Vegetable Association: “The AEWR Methodology rule drastically increased costs for growers and exacerbated the agricultural labor crisis. We’re grateful to Secretary Chavez-DeRemer for her handling of this case and for recognizing the sense of urgency that is still needed to stabilize wages for agriculture.”

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Michael Marsh, President of the National Council of Agricultural Employers: “The vacating of the rule is great news, and we thank Secretary Chavez-DeRemer for recognizing the unlawful nature of the AEWR rule. This decision brings welcome wage relief to some growers who had been subjected to these ‘special’ wage rates for routine tasks done on the farm for generations.”

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Matt Joyner, CEO of Florida Citrus Mutual: “At a time when our growers are facing unprecedented challenges, we appreciate Secretary Chavez-DeRemer’s recognition of the threat that the AEWR Methodology rule brought to the long-term sustainability of agriculture in Florida and across the nation. We look forward to working with the Administration to continue bringing much-needed reforms to the H-2A program to ensure a legal and reliable workforce for growing and harvesting Florida’s signature citrus crop.”

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Paul Meador, Florida Growers Association: “Today’s action is welcomed by the agricultural community, but final relief from the remaining AEWR methodology is still needed to ensure growers in labor intensive agriculture throughout the United States can remain viable.”

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Though the court in Louisiana granted relief from the OEWS-based AEWR, the FLS-based AEWR is still effective, and the underlying premise of adverse effect remains unresolved. Without further action, Florida growers will continue to be subject to the volatile FLS-based AEWR, which spiked nearly 10% this past year and 15% just two years ago.

What do you think about the latest decision to vacate the 2023 Adverse Effect Wage Rate Methodology rule? Leave a comment below.