Harvesting Change: The New H-2A Wage Rule for Agricultural Employers

The U.S. Department of Labor (DOL) recently issued an Interim Final Rule (IFR) that overhauls how Adverse Effect Wage Rates (AEWRs) are determined for temporary agricultural (H-2A) workers. The rule, effective October 2, 2025, represents one of the most significant updates to the H-2A program in years.

The goal is to ensure wages better reflect local market conditions and skill levels, while also giving employers a more predictable framework for compliance.

Key Provisions

1️⃣ State-Specific Wage Determination

DOL will now base AEWRs on state-level data, replacing the single national average. This shift recognizes that agricultural labor markets vary dramatically across the country.

2️⃣ Skill-Based Wage Levels

Two levels are established:

• Skill Level I (Entry-Level) – for positions requiring no or minimal experience

• Skill Level II (Experience-Level) – for jobs requiring prior experience or special skills

This structure allows wage rates to more accurately reflect qualifications and job complexity.

3️⃣ “Highest-Of” RuleEmployers must pay the highest of:

• The applicable AEWR,

• The wage listed in the certified job order, or

• Any other applicable rate (prevailing, CBA, federal, or state minimum).

4️⃣ Housing Adjustments

When employers provide free housing, a state-specific downward adjustment may apply to account for the value of that benefit.

5️⃣ Transition Provisions

Job orders certified before October 2, 2025, remain under the prior wage structure for the duration of the contract. New filings after that date must comply with the new AEWR methodology.

Implications for Stakeholders

For Employers:This reform introduces greater flexibility and precision but also more complexity. Employers will need to clearly define job qualifications and accurately assign SOC codes to ensure the proper wage level applies. Documentation and compliance monitoring will be key.

For H-2A Workers:The new system aims to reward experience and skill. However, some entry-level roles may see lower AEWRs depending on state data, while higher-skilled positions could benefit from elevated wage rates.

For U.S. Workers:By localizing wage rates, DOL seeks to align H-2A compensation with regional labor markets and uphold the statutory goal of preventing adverse effects on domestic wages.

Industry Perspective

The International Fresh Produce Association (IFPA) praised the new rule as a “historic step forward” toward a fairer and more workable wage structure. DOL estimates the new framework could save employers roughly $2.3 billion annually in labor costs while maintaining protections for workers.

Preparing for Compliance

The 2025 rule underscores a growing emphasis on precision and accountability in the H-2A program. Employers should:

• Review job descriptions for accurate skill classification.

• Anticipate AEWR changes in upcoming seasons.

• Ensure consistent documentation and housing compliance.

By planning ahead, agricultural employers can position themselves for a smoother transition under the new rule — one that promises a more data-driven, balanced, and regionally tailored approach to wage setting.