On October 2, 2025, the U.S. Department of Labor (DOL) issued an Interim Final Rule (IFR) that changes how the Adverse Effect Wage Rate (AEWR) is calculated for H-2A agricultural workers. This is an important update because the AEWR sets the minimum hourly wage employers must pay H-2A workers. Its purpose is to ensure that the hiring of foreign agricultural workers does not negatively affect wages and working conditions for U.S. workers.
So, what does this mean for H-2A beneficiaries—the workers themselves? Let’s break it down.
A New Way of Setting Wages
In the past, the AEWR was tied to the USDA Farm Labor Survey, but that survey was discontinued. Now, the DOL will use the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) to determine rates.
For workers, this means wages are now based on broader national labor data and adjusted by occupation type and skill level, not just general farm labor categories.
Two Skill Levels
The new rule creates two categories of pay based on skill level:
- Skill Level I (Entry-Level): For jobs that don’t require formal education, training, or prior experience.
- Skill Level II (Experienced-Level): For jobs that require proven skills, prior training, or experience.
This change means workers with more experience or qualifications could see higher wage offers than before. On the other hand, those in entry-level roles may see lower AEWRs than in previous years if their jobs were previously lumped into higher-wage categories.
Occupation-Specific Rates
For the five most common field and livestock worker occupations, a single AEWR will apply. For all other agricultural jobs, DOL will publish occupation-specific rates.
This is significant because workers doing specialized agricultural tasks—such as equipment operation, irrigation, or greenhouse work—will now have wages that better match the skill and responsibility of their work.
Housing Adjustment
Most H-2A workers receive employer-provided housing at no cost. To reflect this, DOL will now apply a standard downward adjustment to the published AEWR. For example, if the wage for a Skill Level I field worker in Alabama is set at $11.25, the worker would actually be paid $10.05 after the $1.20 housing adjustment.
This is important for beneficiaries to understand—while housing is a benefit, it reduces the hourly cash wage you’ll receive.
Timing and Updates
The AEWR will now be updated in line with BLS’s data release schedule, meaning workers could see wage changes more frequently than under the old system. This may create more fluctuations—sometimes up, sometimes down—in pay rates year over year.
Why This Matters for Workers
- Fairer Pay by Job Type: Workers with higher skill levels or specialized job duties could benefit with higher wages.
- Possible Lower Pay in Some Roles: Entry-level jobs may see reduced wages compared to past AEWRs, especially once the housing adjustment is applied.
- More Transparency: With wages tied to national BLS data, there’s greater consistency and predictability in how rates are set.
- Ongoing Changes: Because this is an interim final rule, workers (and their advocates) can still submit feedback, and future adjustments may follow.
What Workers Should Do
- Know Your Job Classification: Make sure you understand which occupation code your job falls under, and whether it’s Skill Level I or II. This directly affects your pay.
- Watch for Updates: Stay aware of new AEWR announcements, since rates may shift more often.
- Ask Questions: If your pay seems lower than expected, ask your employer how they classified your job and whether the housing adjustment applies correctly.
- Stay Informed: Worker rights organizations and law firms like AW Labor and Farmer Law PC are monitoring these changes and can help explain how they impact you.
The DOL’s new AEWR rule is designed to modernize the wage-setting system for H-2A workers, but it also creates new complexities. For beneficiaries, the bottom line is clear: your pay may look different than in past years—sometimes higher, sometimes lower—depending on your job, skills, and location.
At AW Labor, we believe every worker deserves fair treatment and clarity about their rights. We’ll continue to track developments in this rule and share updates so H-2A workers understand exactly what to expect.
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