Date: Dec 19, 2019
Category:

Today the U.S. Department of Labor published in the Federal Register the 2020 Adverse Effect Wage Rates.  These rates will go into effect on January 2nd, 2020.  As anticipated, there are Steep increases in many states and regions for 2020, including the Western Growers states, as follows:

State

2020 AEWR

2019 AEWR

Increase

Arizona

$12.91

$12.00

7.6%

California

$14.77

$13.92

6.1%

Colorado

$14.26

$13.13

8.6%

New Mexico

$12.91

$12.00

7.6%

 

These states, and nearly all states, are experiencing increases that exceed the wage caps that are a pillar of the Farm Workforce Modernization Act (H.R. 5038).  The FWMA would freeze the 2019 AEWR rates for one year, and limit future increase to more than 3.25-4.25%, providing relief from the trend of rapidly accelerating AEWRs.

The 2020 AEWR rates go into effect January 2, 2020. Employers of H-2A workers are encouraged to ensure that their payroll systems are prepared for the new AEWR on and after that date, as well as the new state minimum wage rates.

WG Staff Contact

Jason Resnick
Vice President & General Counsel
949-885-2253

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