Department of Labor shifts H-2A wage method and adds skill-based categories

The US Department of Labor (DOL) has issued an interim final rule to update the methodology for calculating the rates of H-2A workers.

This decision takes effect immediately, but stakeholders and the general public can still submit feedback, which will be taken into consideration to amend the rule.

According to the ruling, the Adverse Effect Wage Rates (AEWR) system will no longer be based on the USDA Farm Labor Survey. Instead, it will be set using state-level wage data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics (OEWS) survey. 

The rule also introduces two skill-based wage categories within each occupational classification: entry level and experienced.

Workers’ pay will vary depending on the category they fall under, based "on the duties performed for the majority of the workdays during the contract period and qualifications contained in the employer’s job offer.”

Through a press release, the International Fresh Produce Association (IFPA) celebrated the DOL revisions, emphasizing how they provide significant savings for employers in the agricultural industry. 

It stated the “DOL projects that this change will save agricultural employers an estimated $2.3 billion annually in labor costs.”

The IFPA also praised the revised rules for including input from the industry trade association. The entity said it has continuously provided recommendations to the department with the purpose of creating a more “workable wage-setting process within existing legal and administrative constraints.”