What Adverse Effect Wage Rate means to ag employers

The Adverse Effect Wage Rate (AEWR) is the minimum wage that must be paid to H-2A agricultural workers to ensure that their employment does not negatively impact the wages of domestic workers in similar roles. The AEWR is determined annually by the U.S. Department of Labor and is based on regional wage data, such as the USDA's Farm Labor Survey or the Bureau of Labor Statistics' Occupational Employment and Wage Statistics. Employers hiring H-2A workers must pay the highest of the AEWR, the prevailing wage, the federal or state minimum wage, or any collectively bargained wage rate. This wage rate serves as a safeguard to prevent wage depression in the U.S. agricultural sector due to the employment of foreign workers.

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