A federal judge in California ruled Wednesday that the Trump administration illegally lowered the wages of migrant farmworkers, in a move the government said was intended to offset the effects of its immigration policies. The decision by U.S. District Judge Kirk E. Sherriff creates immediate uncertainty for employers relying on the current wage scale and signals that the administrative process used to revise H-2A rates did not meet legal standards.
What changed
U.S. District Judge Kirk E. Sherriff declared a Labor Department policy that lowered pay for foreign farmworkers in the H-2A visa program by about $7 to $5 an hour “unlawful.” Judge Kirk E. Sherriff found that a Labor Department rule pushing down the payscale for H-2A farmworkers was “arbitrary and capricious,” and failed to adhere to administrative law.
The challenged rule changed how the agency calculates the Adverse Effect Wage Rate (AEWR)—the minimum wage employers must pay H-2A workers. The Trump administration implemented the rule last fall without a comment period, saying it would reduce farmers’ labor costs by $24 billion over the next decade.
Judge Sherriff concluded that the Labor Department failed to reasonably consider whether it could satisfy its legal obligation “to ensure that the hiring of H-2A workers will not ‘adversely affect’ U.S. farmworkers’ wages.” However, he allowed the Department of Labor rule to remain temporarily in effect while the agency develops a replacement.
Sherriff ordered the Labor Department to “promptly produce” a new methodology for calculating H-2A wage rates consistent with his decision. He directed the agency to notify employers backpay may be owed to H-2A workers and U.S. farmworkers if the new applicable rates exceed what they were paid.
Why it matters
If you represent agricultural employers using H-2A workers, you face three immediate compliance risks:
- Ongoing exposure: The rule remains in effect but is now legally vulnerable. An appeal or legislative override could change the wage floor without notice.
- Backpay liability: Employers may owe retroactive wages if the replacement AEWR is higher than what workers have already been paid under the struck-down rule.
- Recruitment and retention: Uncertainty about future wage rates complicates labor planning and budgeting for the 2027 growing season.
For farmworkers and their representatives, the ruling restores the agency’s duty to conduct a reasoned analysis of the domestic-worker adverse-effect standard baked into H-2A law. The court did not vacate the rule outright—only found it procedurally defective—so advocacy must now focus on what the replacement methodology should be.
Way forward
- Employers: Review your current H-2A labor contracts and wage records. Begin planning for potential wage-rate increases in 2027. Consult counsel on whether backpay notices from DOL are likely and what liability protections may apply.
- Worker advocates and unions: Monitor the Labor Department’s timeline for issuing a new rule. File comments emphasizing that the replacement must satisfy the statutory duty to protect U.S. worker wages, not merely avoid formal procedural defects.
- Immigration counsel: Track whether the Trump administration appeals Sherriff’s order or challenges his legal reasoning. An appeal would extend uncertainty; the timing of any replacement rule directly affects H-2A petition filings and staffing decisions.
- All practitioners: Verify the current AEWR rates on the Department of Labor H-2A wage tracker before advising clients. Rates may shift once the agency issues its replacement rule.
Disclaimer
This article is provided for informational purposes only and does not constitute legal advice. Fola is a software company, not a law firm. Immigration law is complex and fact-specific; immigration practitioners should consult a licensed attorney licensed in their jurisdiction to discuss the impact of this ruling on their specific matters. Policy and guidance can change without notice. Verify all information against the primary source document and current agency guidance linked above.