NEW AEWR for 2023 Released

The U.S. Department of Labor released their annual survey of Adverse Effect Wage Rates, otherwise referred to as AEWRs, on the eve of Thanksgiving Day.  While we did anticipate rate increases across the board, nothing led us to even imagine what this new reality brings forth.  The national average (increase in the Adverse Effect Wage Rate) for H-2A workers is a whopping 6.81% increase over last year, with all major watermelon producing areas hammered with significant increases.  The released numbers will become the AEWRs for 2023 (under the current methodology) when they are published by DOL in the Federal Register.  The attached spreadsheet shows the 2021 and 2022 average wage, field and livestock workers, combined ….… and the new numbers for the 2023 AEWRs.  It also shows the percent increase by state or region of the country.   

The national average (increase in the Adverse Effect Wage Rate) for H-2A workers is a whopping 6.81% increase over last year, with all major watermelon producing areas hammered with significant increases.  The released numbers will become the AEWRs for 2023 (under the current methodology) when they are published by DOL in the Federal Register.  The attached spreadsheet shows the 2021 and 2022 average wage, field and livestock workers, combined ….… and the new numbers for the 2023 AEWRs.  It also shows the percent increase by state or region of the country.   
 
This survey is used by DOL to determine the 2023 Adverse Effect Wage Rates (AEWR), which as you know are wages that must be paid to H-2A workers in the U.S.  And, also paid to domestic workers if you are a H-2A employer.  The AEWR is determined by a formula developed by DOL, who claim it to be developed to protect the domestic workforce from having their wages depressed by foreign agricultural workers.  The results, as we all know, are far different, and they result in increased wages across the entirety of the system. 
 
Many feel this data and the formula that DOL uses is inappropriate and does not rely on true wage cost for those who use the H-2A program.  As a result of this survey and using the DOL wage formula, we anticipate the national AEWR will be $16.62.  Across the country, individual state AEWR’s will range from between $13.67 to a high of $18.65 in California.  The highest single increase on a percentage basis will be in Florida, where the AEWR increased by almost 15.5%.
 
While we expect the DOL’s proposed rule (new methodology) to be released very soon, it is expected to also increase wages with different job classes broken out, as well as other anticipated changes.  When the proposed rule will be released, or take effect, is yet unknown.  Until then, we are ‘stuck’ with this rate schedule from DOL.
 
We have heard so much rhetoric from our elected officials about the rising cost of food and inflation taking off, but yet they continue to politicize the ‘idea’ of immigration reform while we remain with a dire need of and access to a viable, legal and affordable workforce.  Something has to give - - something positive for a change - - and soon.  It just must.

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