H-2A employers are rejoicing on news that the Department of Labor has taken further steps to reign in runaway H-2A wages. On October 2, 2025, the U.S. Department of Labor’s Interim Final Rule (IFR) on Adverse Effect Wage Rates (AEWRs) takes effect, immediately changing how wages are calculated in the H-2A program. 

Key Changes: 

• Two Skill Levels: DOL will now publish OEWS-based AEWRs at two levels. Skill Level I applies to entry level job qualifications with no to minimal experience requirements (e.g., up to two months’ prior experience), while Skill Level II applies when experience (e.g., at least 3 months prior experience) or special licenses are required. 

• SOC Assignment by Majority of Workdays: Jobs will be classified based on duties performed for most of the contract period, reducing the risk that incidental duties (like occasional CDL driving) will trigger a higher wage. 

• Five-SOC Combined Category: Most field and livestock jobs fall into a single statewide AEWR for each skill level. 

• New Housing Adjustment: Employers may reduce H-2A worker wages by a state-specific housing adjustment when free housing is provided. U.S. workers must still be offered the full AWE. 

What It Means for Growers: 

• The AEWR paid to H-2A workers will be lower going forward. 

• Job orders should be carefully drafted to align qualifications with the intended skill level. 

• For job orders filed before the IFR, the AEWR that applied under the 2010 rule will remain in force. Employers will not be permitted to lower wages of earlier filed job orders.  

• Employers must continue to pay the highest of the AEWR, state minimum, prevailing wage, or CBA rate. In California, the state minimum wage is higher than the AEWR. However, in Arizona, for example, the AEWR is higher than the state minimum wage.  

Western Growers President and CEO Dave Puglia praised the Administration’s announcement: 

“Western Growers members have long been struggling under unsustainable wage pressures that threaten the competitiveness of American agricultural production. This new wage rule is a meaningful step toward restoring the viability of American farmers and ranchers. By tying H-2A wages more closely to actual market data and recognizing the value of employer-provided housing, Department of Labor is helping restore much-needed balance to the program. Our members need predictability in labor costs, and this rule provides a framework that allows them to plan and continue supplying safe, healthy produce for American families. We appreciate the responsiveness of Secretary Chavez-DeRemer and Secretary Rollins in addressing one of agriculture’s most pressing challenges.” 

The rule is effective immediately, with a 60-day public comment period. Western Growers will provide additional guidance and resources to help members navigate this significant change.  For questions about the IFR and how it may impact your H-2A program, please contact the Western Growers H-2A Services Team.