AB 2646 would establish a new California minimum hourly wage of $19.75 for certain agricultural employees, including H-2A workers and domestic workers in corresponding employment, beginning January 1, 2027. Each year thereafter, the wage would increase by the same cost-of-living adjustment applied to Social Security benefits.  

This proposed wage mandate would be layered on top of existing H-2A program obligations, including employer-paid housing, inbound and outbound transportation, and either three meals per day or free kitchen and cooking facilities. The practical effect would be to further increase the cost of using the H-2A program in California. 

Where the Bill Stands 

AB 2646 passed off the Assembly floor on a 58-16 vote and is now in the Senate, where it has been referred to the Senate Rules Committee for assignment.  

WG remains strongly opposed to the bill. If enacted, AB 2646 would likely increase production costs, contribute to higher food prices, and make California-grown products less competitive against imports produced at lower cost. 

The bill may also invite litigation. Because the H-2A program is governed by a comprehensive federal statutory and regulatory scheme, there is a strong federal preemption argument if California attempts to impose a separate state wage mandate targeting H-2A employment. 

What Employers Should Do Now 

Agricultural employers should monitor AB 2646 closely as it moves through the Senate. Employers using, or considering using, the H-2A program should begin evaluating the potential cost impact of a $19.75 wage floor beginning in 2027, including the effect of annual COLA increases in future years. 

Employers should also continue documenting H-2A compliance practices, including housing, transportation, meals or kitchen facilities, wage records, and job order obligations. While AB 2646 is not yet law, the bill reflects continued legislative scrutiny of the H-2A program. 

For more information about AB 2646 or the H-2A program generally, WG members should contact the Western Growers H-2A Services Team.