The Department of Labor (DOL) finalized its new interim rule for H-2A guestworker Adverse Effect Wage Rates.
The rule makes significant changes to the wage calculation for farm laborers across the nation, the American Farm Bureau Federation (AFBF) said. The interim final rule went into effect on Oct. 2.
“Utilizing data from Occupational Employment and Wage Statistics, H-2A employers will now pay wages based on tiers of job experience requirements and receive adjustments to offset the nonwage costs of the H-2A program, lowering employment costs for nearly all H-2A workers,” said Samantha Ayoub, AFBF associate economist.
DOL estimates that the new rule will save farmers an average of $2.4 billion per year over the next 10 years, but AFBF said that when accounting for state minimum wages, the benefit is likely overstated.
