The U.S. Department of Labor has released an interim final rule that would transform how wages are determined for farmers using the H-2A guest worker program.
The department estimates the adjustments could save employers $2.4 billion in labor costs.
Michigan Congressman John Molenaar tells Brownfield the Adverse Effect Wage Rate, AEWR, in his state is currently more than 45 percent higher than the minimum wage.
“Since 2014, the AEWR has increased by over 61 percent in Michigan,” he says. “Right now, it’s currently $18.15 an hour, plus the cost that farmers take on for housing, transportation, and other expenses.”
The DOL says employers will receive cost adjustments for providing housing and other non-monetary compensation.
DOL’s Occupational Employment and Wage Statistics data will be used to align more closely with wages paid to U.S. workers in specific occupations. The program will use a tiered wage structure based on skill level.
Michael Marsh, with the National Council of Agricultural Employers, says returning control over wages to the market, rather than relying a flawed and outdated methodology, gives America’s farmers and ranchers a real chance to be competitive.
The International Fresh Produce Association says the interim final rule represents a historic step forward in creating a fairer, more predictable, and workable process for setting H-2A wage rates.
The Department of Homeland Security has also announced a final rule to streamline certain H-2A application procedures.
