The rapidly evolving legal situation surrounding the H-2A Adverse Effect Wage Rate continues to be a critical issue for agricultural employers, and the NWA is closely monitoring all developments. Following the latest court action, the Department of Labor has begun formally notifying employers of a potential backpay period. The current AEWRs remain in effect, and no backpay has been awarded—the amount and period of any potential backpay have not yet been determined.
Employers should check their FLAG accounts and email for DOL’s notice, maintain complete payroll records and be prepared for the possibility of a wage-rate change during an active contract. The National Council of Agricultural Employers, which has been closely following the case, also recommends that employers discuss potential exposure with their counsel and accountants.
The court still needs to establish the timeline for DOL to develop a replacement wage methodology, making this an important story we will continue to follow closely.