By Clint Thompson
The Department of Labor’s interim final rule revising the methodology used in Adverse Effect Wage Rate (AEWR) calculations is a win long term for specialty crop producers. In the short term, though, growers must be wary of any contracts that were already in place preceding the new rule.
That’s the message that Chris Butts, executive director of the Georgia Fruit and Vegetable Growers Association (GFVGA), wants to get across to farmers who utilize the H-2A system.
“The big thing for our growers is if you have an existing contract, then you are still subject to pay the wages in that contract. This does not lower the rate for any workers that are here or for any contract that has been completed for workers that will be coming,” Butts said. “But if you start a new contract, a new application for H-2A workers, going forward, it will be at the new rate.”
Under the new interim final rule, the DOL will base AEWRs on state-level wage data from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey rather than the USDA Farm Labor Survey, which was previously used.
Once the rule was published in the Federal Register, it became effective immediately, with comments accepted for a period of 60 days.
Under the new rule, the AEWRs for Level 1 workers (entry-level and less experienced) are $12.27 per hour not including the housing adjustment decrease of $1.75 per hour if housing is provided. The AEWRs for Level 2 workers (experienced and higher skilled) are $16.22 per hour if not including the housing adjustment decrease of $1.75 per hour if housing is provided.