On October 2, 2025, the Department of Labor (DOL) published an Interim Final Rule (IFR) revising how it calculates the Adverse Effect Wage Rate (AEWR) for H-2A agricultural workers in non-range occupations. This change comes after the prior 2023 AEWR rule was vacated in court and the USDA’s decision to discontinue its Farm Labor Survey (FLS).

The AEWR is a required wage floor that employers must pay H-2A workers, designed to ensure their employment does not adversely affect U.S. workers’ wages or working conditions.

Key Changes

1. New Data Source: Instead of relying solely on the USDA’s Farm Labor Survey, the DOL will now use the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey data.
2. Skill-Based Categories: AEWRs will be set at two skill levels (Skill Level I -Entry-Level, and Skill Level II -Experience-Level) within each Standard Occupational Classification (SOC) code, reflecting differences in qualifications required in job offers.
   A Skill Level I AEWR is associated with job offers containing qualifications commensurate with entry-level positions where workers need no formal education or specialized training credentials (typically require no or very little work-related experience).
   A Skill Level II AEWR is associated with job offers containing qualifications commensurate with experience-level or qualified employees who possess, either through education, training, or experience, demonstrated skills or knowledge to perform the work covering the SOC code(s).
3. Occupation-Specific Rates: For the five most common field and livestock worker occupations, a single AEWR will apply. For all other occupations, the DOL will publish SOC-specific AEWRs using OEWS data.
4. Adjustment for Housing: Because H-2A workers often receive employer-provided housing at no cost, the DOL will apply a standard adjustment factor to AEWRs to account for this non-wage benefit. For example, if employers are seeking to employ H-2A workers in Alabama for jobs in any of the five SOC codes encompassed by the “field and livestock workers (combined)” category, their job orders would specify in the job order (i.e., Field A.8b of the Form ETA-790A) a wage offer to U.S. workers no less than $11.25 per hour, where the duties and qualifications are commensurate with a Skill Level I position. For any H-2A worker(s) employed under the associated temporary agricultural labor certifications, employers would specify (in Field A.8e or Addendum A of the job order) wage offers to H-2A workers no less than $10.05 per hour ($11.25 per hour for Skill Level I minus $1.20 per hour adjustment).

Timing

New AEWRs will be published in line with the BLS release schedule, ensuring more frequent updates.

Rationale

First, the DOL cited ongoing agricultural labor shortages, compounded by reduced availability of unauthorized workers and stricter immigration enforcement. Second, the 2023 AEWR rule was vacated; reverting to the 2010 method was not sustainable because the USDA has discontinued the FLS. Finally, for good cause, DOL bypassed the usual notice-and-comment period due to risks of food supply disruptions, rising costs, and lack of a functioning wage methodology if action was delayed.

Impact on Employers

1. More Precision: Wages will better reflect specific duties and skills, reducing the likelihood of overpayment for mixed-duty positions.
2. Administrative Updates: Employers must carefully review job descriptions and ensure SOC codes and skill levels are accurately assigned in applications.
3. Cost Considerations: Some AEWRs may decrease compared to prior years, but adjustments for housing and occupation-specific rates could increase wages in certain cases.
4. Compliance: Employers must apply the published AEWRs immediately once effective and continue to follow all recruitment and certification requirements.

Next Steps Recommendations:

1. Review Job Offers: Employers should confirm that job descriptions and qualifications align with the correct SOC and skill level.
2. Plan for Budget Impacts: Anticipate potential changes in labor costs depending on job classifications.
3. Submit Comments: Stakeholders may submit written comments to DOL by [insert deadline: 60 days after publication]via www.regulations.gov, citing Docket No. ETA-2025-0008.
4. Monitor Updates: Watch for official AEWR publications tied to the BLS OEWS release schedule.

If you have questions about how this rule impacts your operations or need assistance with H-2A applications, please contact Farmer Law PC at intake@farmerlawpc.com.