Revised Methodology to Determine AEWRs Announced


On February 28, 2023, the U.S. Department of Labor (DOL) announced that it is revising the methodology by which it determines the hourly Adverse Effect Wage Rates (AEWRs). For all H-2A applications processed after March 30, 2023, the DOL will now be using a combination of wage data reported by the U.S. Department of Agriculture’s (USDA) Farm Labor Survey (FLS), and the Department’s Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) survey. So, what does that actually mean to a farmer using H-2A labor? Let’s dig into it.


H-2A employers must provide transportation and housing and pay the higher of the applicable state or federal minimum wage, the prevailing wage in that region and occupation, as determined by the U.S. Department of Labor, or the regional average farm wage observed in the USDA National Agriculture Statistics Service (NASS) FLS. Te latter is known as the Adverse Effect Wage Rate (AEWR), reflecting the legal requirement that H-2A employment should not negatively affect domestic farmworkers by lowering the average wage. For fiscal 2023, this minimum hourly wage ranged from $13.67 in Alabama, Arkansas, Georgia, Louisiana, Mississippi, and South Carolina to $18.65 in California, and $20.33 in the District of Columbia. (See Figure 2).


Adverseeffectwagerates(AEWR),2023 1797


Washington Oregon 17.97


15.68 Idaho


Montana 15.68 17.33 NorthDakota 17.33


15.68 Wyoming


16.34 Nevada


18.65 California


16.34 Utah


SouthDakota


17.33 Nebraska


16.34 Colorado


17.33


15.62 Arizona


15.62 NewMexico


14.87 Texas


Kansas 14.87 Oklahoma


17.54 lowa


17.54 Missouri


13.67 Arkansas


17.34 Minnesota


1734 Wisconsin


Michigan 17.34


17.1717.17 Illinois Indiana


Tennessee 14.26 13.6713.67 13.67 Louisiana


14.33 Florida


20.33 Alaska


17.25 Hawaii


Source:USDA,EconomicResearchServiceusingdatafromU.S.DepartmentofLabor, OfficeofForeignLaborCertification(OFLC),asofMarch30,2023.


In some regards, the new calculation for AEWRs is still quite easy. Te wage for most positions, as defined by the “Big 6” Standard Occupational Classification (SOC) Codes, will continue to be determined by the Farm Labor Survey. Te Farm Labor Survey (FLS) conducted by USDA’s National Agricultural Statistics Service (NASS) is based on semi-annual phone interviews with a random sample of farm employers who are asked to provide quarterly data on their wage bill, employment counts, and average weekly hours for all hired workers, by occupation.


Each year, the FLS's estimate of the annual average wage in each of 18 regions is used as the basis for the Adverse Effect Wage Rate (AEWR), which sets a minimum wage for H-2A workers and positions during the following year. Tese positions include


TPI Turf News July/August 2023 19 Ohio17.17 K ^14.26 entucky WestVirginia14.91 14.26 Virginia N 14.91 SouthCarolina 13.67 MississippiAlabama Georgia


orthCarolina 13.67


NewHampshire16.95 16.05 16.95


16.95 NewYork


16.55 Pennsvlvania


Mass. Maine 16.95 J'rhodeisland •Connecticut


-16.55 NewJersey 16.55


Delaware


•16.55 Marvland


DistrictofColumbia 20.33


13upto14 14upto15 15upto16


•16upto17 Over17


•16.95 16.95


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