The U.S. Department of Labor (DOL) has issued a notice advising H-2A employers that they may be required to make retroactive wage-adjustment payments after the agency establishes a new Adverse Effect Wage Rate (AEWR) methodology. 

The notice follows an August 26, 2026, order in United Farm Workers v. DOL. The U.S. District Court for the Eastern District of California concluded that DOL’s current AEWR methodology for non-range occupations is unlawful and directed the agency to promptly develop a new methodology and publish new AEWRs. 

The court did not vacate the existing rule or the AEWRs issued under it. Accordingly, the current AEWRs remain in effect, and employers should continue paying the presently applicable wage rates. No employer is currently required to pay back wages. 

The potential backpay period began September 2, 2026, and will end when DOL issues a new AEWR methodology. Employers may later be required to pay the difference if the new applicable AEWR exceeds the hourly wage paid during that period. In states where the state minimum wage is the effective wage rate because it exceeds the AEWR, retroactive adjustments should not be required if the updated AEWR remains below the minimum wage under DOL’s new methodology. Any required adjustment could apply to both H-2A workers and U.S. workers in corresponding employment. 

The notice applies to: 

• Employers with an approved H-2A certification that remained in effect on September 2, including approved extensions 

• Employers with pending H-2A applications 

• Employers filing new H-2A applications before DOL publishes a new methodology 

DOL strongly disputes whether the court has legal authority to require the agency or employers to make retroactive wage adjustments. The agency is considering further litigation and has stated that it will oppose the future imposition of backpay obligations. Significant questions therefore remain, including what methodology DOL will adopt, how quickly it will act, whether the resulting AEWRs will be higher, and whether backpay will ultimately be required. 

What Employers Should Do Now  

In the meantime, affected employers should: 

• Continue paying the currently applicable wage rates 

• Maintain detailed records of each worker’s hours and wages beginning September 2 

• Preserve identifying and contact information for all H-2A workers and corresponding U.S. workers, including permanent addresses, Social Security numbers if issued, Form I-94 numbers where available, permanent email addresses, and phone numbers 

• Make reasonable efforts to keep that information current, including for workers who complete their employment before DOL issues new rates 

Western Growers will continue monitoring the litigation and DOL’s development of a replacement AEWR methodology. 

For questions about this notice or the H-2A program in general, please contact the Western Growers H-2A Services Team.