Newhouse Applauds Trump Administration for Lowering Farm Guestworker Wages

WASHINGTON, D.C. – Today, Rep. Dan Newhouse (WA-04) released the following statement on the United States Department of Labor's announcement of new methodology for determining the Adverse Effect Wage Rate (AEWR) used to set wages paid by employers utilizing the H-2A program. 

"Farmers and ranchers in Central Washington have been at a disadvantage for years due to high wages in the H-2A program," said Rep. Newhouse. "The new AEWR methodology from the Department of Labor will allow employers to pay workers at a competitive rate that is commensurate with their work and experience. This will save employers who utilize the H-2A program billions of dollars per year in costs and deliver much needed relief to producers who have been strained by workforce costs." 

"I want to thank my former House colleague and current Secretary of Labor Lori Chavez-DeRemer for her decisive action."  

Historically, the AEWR has been determined by the United States Department of Agriculture's Farm Labor Survey. The Department of Labor's new methodology will use wage data reported for each U.S. state and territory by the Department's Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey.

For the vast majority of H-2A job opportunities, the Department will use OEWS survey data to establish AEWRs applicable to five Standard Occupational Classification (SOC) codes combining the most common field and livestock worker occupations previously measured by the U.S. Department of Agriculture's (USDA) Farm Labor Survey (FLS), which covered six SOC codes. 

These AEWRs will be divided into two skill-based categories to account for wage differentials arising from qualifications contained in the employer's job offer. For all other occupations, the Department will use the OEWS survey to determine two skill-based AEWRs for each SOC code to reflect wage differentials. The threshold determination for assigning the SOC code(s) and applicable skill-based AEWR will be based on the duties performed for the majority of the workdays during the contract period and qualifications contained in the employer's job offer.

Finally, to address differences in compensation between most U.S. workers and H-2A workers who receive employer-provided housing at no cost, the Department will implement a standard adjustment factor to the AEWR to account for this non-monetary compensation that employers will apply when compensating H-2A workers under temporary agricultural labor certifications.

While the effective date of the new methodology is October 2, 2025, active contracts will not be changed to reflect the new rates.  

The Department of Labor projects this new methodology will save employers up to $2.46 billion annually.

Please note that attempts to reach the Department of Labor, or other federal agencies, for more information may be impacted by the government shutdown.  

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