In a significant regulatory shift, the U.S. Department of Labor (DOL) has adopted a new method for determining Adverse Effect Wage Rates (AEWRs) under the H-2A temporary agricultural visa program. The DOL will now base its wage calculations on the Bureau of Labor Statistics' Occupational Employment and Wage Statistics (OEWS) rather than the USDA's Farm Labor Survey (FLS), which is being discontinued.

The updated methodology applies OEWS data to five key Standard Occupational Classification (SOC) codes that reflect the most common farm and livestock positions. AEWRs will be structured into two skill-based tiers, allowing for wage differences tied to the worker qualifications listed in the employer's job offer. For other occupations, the same two-tier wage system will apply per SOC code.

Importantly, employers who provide free housing to H-2A workers can now apply downward wage adjustments, a measure welcomed by agricultural producers facing escalating input costs.

The National Council of Agricultural Employers (NCAE) has applauded the move, stating it returns agricultural wages "back to reality." The organization had legally challenged the previous AEWR rule finalized in 2023, arguing that it incorrectly classified workers into higher-paying specialized categories based on minimal tasks. Their litigation contributed directly to the dismantling of that regulation.

The International Fresh Produce Association (IFPA) also issued support, calling the interim final rule "an historic step forward" that introduces greater fairness, predictability, and administrative efficiency to H-2A wage setting. The organization emphasized that many of its recommendations were incorporated into the rule.

The DOL estimates that the shift will reduce employer wage expenditures by approximately $2.46 billion annually. This comes at a time when the H-2A program has reached record volumes: 384,900 positions were certified in fiscal year 2024, up from just 90,000 in 2012. However, the rate of growth has slowed in recent years due to labor shortages, stricter immigration enforcement, and rising regulatory complexity.

According to an internal DOL assessment, the absence of a "reasonable and viable AEWR methodology"-combined with reduced unauthorized labor inflow and growing global competition-could threaten U.S. food security by inducing supply shocks. The department argued that these conditions justify the immediate implementation of the new rule.

Still, legal observers caution that the rule may face further challenges under the Administrative Procedure Act, which mandates transparent and justified policymaking that does not undercut U.S. worker protections.

For now, growers and ag labor stakeholders are welcoming what many see as a long-overdue correction in wage methodology. With simplified wage structures, better alignment with job classifications, and lower projected labor costs, the change signals a new era of federal responsiveness to the evolving needs of American agriculture.