A federal court in Louisiana has vacated the U.S. Department of Labor's (DOL) 2023 Adverse Effect Wage Rate (AEWR) Methodology rule, a decision that comes as Florida growers prepare for the upcoming season.
"The AEWR Methodology rule drastically increased costs for growers and exacerbated the agricultural labor crisis," said Jamie Fussell, director of labor relations for the Florida Fruit & Vegetable Association (FFVA). "We're grateful to Secretary Chavez-DeRemer for her handling of this case and for recognizing the sense of urgency that is still needed to stabilize wages for agriculture."
Published on Feb. 28, 2023, the rule-based H-2A program AEWRs on both the Occupational Employment and Wage Statistics (OEWS) survey and the Farm Labor Survey (FLS). It applied permanent, non-agricultural wage data to seasonal agricultural jobs, subjecting growers to wage adjustments every six months.
"The vacating of the rule is great news, and we thank Secretary Chavez-DeRemer for recognizing the unlawful nature of the AEWR rule," said Michael Marsh, president of the National Council of Agricultural Employers (NCAE). "This decision brings welcome wage relief to some growers who had been subjected to these 'special' wage rates for routine tasks done on the farm for generations."
Matt Joyner, CEO of Florida Citrus Mutual (FCM), added, "At a time when our growers are facing unprecedented challenges, we appreciate Secretary Chavez-DeRemer's recognition of the threat that the AEWR Methodology rule brought to the long-term sustainability of agriculture in Florida and across the nation. We look forward to working with the Administration to continue bringing much-needed reforms to the H-2A program to ensure a legal and reliable workforce for growing and harvesting Florida's signature citrus crop."
"As we prepare for our next strawberry season, we're grateful for the sense of relief and reprieve this decision will bring," said Michelle Williamson of G&F and Franberry Farms.
Plaintiffs in the case included FFVA, FCM, Florida Growers Association, G&F Farms, Franberry Farms, and NCAE. The groups sought to invalidate both the OEWS and FLS methodologies, as well as DOL's application of adverse effect.
"Today's action is welcomed by the agricultural community, but final relief from the remaining AEWR methodology is still needed to ensure growers in labor-intensive agriculture throughout the United States can remain viable," said Paul Meador, Florida Growers Association.
While the court vacated the OEWS-based AEWR, the FLS-based AEWR remains in effect. Florida growers remain subject to volatile FLS-based rates, which rose nearly 10% last year and 15% the year before.
With domestic labor shortages persisting, growers have increasingly turned to the H-2A program. However, regulatory and cost burdens continue to pressure growers. "We have much work left to do," Marsh said. "Farmers must have relief if we are going to continue to produce food in America."
For more information:
Michael Marsh
National Council of Agricultural Employers
Tel: +1 202 629 9320
Email: [email protected]
www.ncaeonline.org
