A federal judge has scheduled a long-awaited hearing in a high-stakes legal challenge to the U.S. Department of Labor’s 2023 methodology for setting Adverse Effect Wage Rates (AEWR) for H-2A workers. The lawsuit, brought by the National Council of Agricultural Employers (NCAE)—of which Western Growers is a member—alongside several Florida-based agricultural organizations, seeks to roll back the 2023 AEWR rule and enjoin its nationwide application.

U.S. District Judge Charlene Honeywell set oral arguments for July 1, 2025, in Tampa, Florida, after rejecting a third request by the Department of Justice (DOJ) to delay the proceedings. DOJ had previously sought pauses to allow new leadership at the Department of Labor (DOL) to evaluate its position on the rule. The court had already granted two extensions—first for 60 days, then another 30. In its latest request, DOJ sought an additional 90-day delay, which the court denied.

The 2023 AEWR rule significantly increased required wage rates in several key agricultural states. California currently holds the highest AEWR in the contiguous United States at $19.97 per hour. Washington and Oregon follow closely behind at $19.82, while states like Idaho are set at $16.83.

The lawsuit challenges the methodology used by DOL to establish AEWRs, particularly its reliance on the USDA’s Farm Labor Survey (FLS) as well as other data sources not limited to field or crop-specific work. Plaintiffs argue that DOL’s use of broader occupational wage data—including pay rates for truck drivers and frontline supervisors—unfairly inflates H-2A wage requirements beyond the scope of traditional farm labor.

In addition to wage calculations, the lawsuit disputes DOL’s interpretation of employers’ housing obligations. While federal regulations require H-2A employers to “furnish” housing, DOL interprets this to mean housing must be provided free of charge. The plaintiffs argue this interpretation lacks statutory basis and that the value of employer-provided housing should be factored into the total compensation package, not excluded from wage calculations.

The plaintiffs seek summary judgment and a nationwide injunction to revert AEWRs back to 2023 levels, contending that the current rule has placed unsustainable financial burdens on farm employers without adequate legal justification. Both sides have filed summary judgment motions, which will be argued before Judge Honeywell during the July 1 hearing.