A California judge ruled that parts of a 2025 Labor Department rule changing the Adverse Effect Wage Rate were unlawful. The court questioned the new two-tier wage system, housing adjustment and parts of the wage calculation. However, the judge did not throw out the rule, so current H-2A wage rates remain in place for now. The ruling could also lead to backpay for farm employers if replacement wage rates are higher. Growers are being advised to keep detailed payroll records while the case continues.
