H-2A wages fell under the new AEWR rule. Here is how the rates are set now.

If you hire H-2A workers, you already know the wage rules changed. If you do not, you are still affected, because the Adverse Effect Wage Rate has been the de facto floor for hired farm labor in most counties for years. Here is the current state of things.

How it used to work

The AEWR was set from USDA's Farm Labor Survey, one regional average wage for all field and livestock work. In 2025 that produced rates from roughly $15 to $20 an hour depending on the region.

What changed

USDA cancelled the Farm Labor Survey in August 2025. The Department of Labor issued an interim final rule on October 2, 2025, that rebuilt the AEWR on the Bureau of Labor Statistics' Occupational Employment and Wage Statistics survey instead. The new structure:

• Skill Level 1 wage for jobs requiring little experience.
• Skill Level 2 wage for positions requiring at least three months of experience.
• An adverse compensation adjustment that reduces the cash wage for workers who receive employer-provided housing, on the theory that housing is part of the compensation.

The result for 2026 is a range of roughly $8 to $17 an hour across states and job categories. DOL's own projection is that total H-2A wages will fall from $6.6 billion in 2025 to about $5 billion in 2026. Current rates by state are posted at flag.dol.gov.

Who this affects

H-2A employers are the obvious group, and for a dairy or feedyard that has been paying $17 or more for a skilled milker or pen rider, the Skill Level 2 rate is still a meaningful cut.

Domestic workers are the less obvious one. Employers are not required to pay U.S. workers more than they pay H-2A workers in the same job. In states where the state minimum wage is above the new Skill Level 1 rate, like California, the state floor governs. In states without a higher minimum, employers may set domestic wages close to the new AEWR. The Economic Policy Institute estimates the total reduction in farmworker earnings at $4.4 to $5.4 billion a year if that plays out broadly.

Everyone who competes for labor with H-2A operations. If the neighbor's H-2A crew gets cheaper, your own hiring market moves too, in either direction depending on how tight local labor is.

Practical notes

1. Check the rate for your state and the specific SOC code for your job. Livestock workers and crop workers are now different rates.
2. If you provide housing, the adjustment applies and your paperwork needs to reflect it.
3. The rule is an interim final rule, meaning it is in effect but still open to legal challenge and revision. Several lawsuits have been filed. Do not assume the 2026 rate structure is permanent when you plan 2027 contracts.
4. Congress has separately considered budget language expanding the program. Watch the farm bill, where labor provisions have been a recurring sticking point.