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ARTICLE · 15 OCTOBER 2025

Client Alert: DOL Issues Interim Final Rule Overhauling H-2A AEWRs (Effective Oct. 2, 2025)

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Summary. The U.S. Department of Labor (DOL) issued an interim final rule that helps reign in wage levels based on prior wage calculations. This immediately changes how the Adverse Effect Wage Rate...

United StatesEmployment and HR
Matt J. Mauntel-Medici
Matt J. Mauntel-Medici

Summary. The U.S. Department of Labor (DOL) issued an interim final rule that helps reign in wage levels based on prior wage calculations. This immediately changes how the Adverse Effect Wage Rate (AEWR) is set for H-2A non-range occupations (all H-2A jobs other than open-range herding/production) and should largely reduce costs for farmers. The rule introduces a standardized downward "H-2A adverse compensation adjustment" of $1-$3 per hour that may be applied to H-2A workers when the employer provides no-cost housing, while U.S. workers in corresponding employment must still be offered the unadjusted AEWR. This helps reduce the costs of farm labor while ensuring US workers are not adversely affected. Effective date: October 2, 2025. Comments due: December 1, 2025.

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