United States | Appellate court upholds H-2A rule on farmworker wages

The U.S. Court of Appeals for the Fourth Circuit affirmed a lower court’s decision to uphold protections of the H-2A Adverse Effect Wage Rates (AEWR) rule against an injunction attempt.

Key Points:

• The AEWR rule aimed to prevent employers from exploiting regulatory gaps to underpay H-2A workers. Domestic workers and ethical businesses benefit, as they no longer compete with underpaid labor.
• A group of farm owners and employers filed a lawsuit in a lower court to block the Department of Labor (DOL) from enforcing the rule, arguing that the DOL failed to consider the impact on farmers’ costs and illegal immigration.
• The appellate court ruled that “the district court reasonably concluded that the balance of the equities and the public interest did not tip in favor of an injunction.”

Additional Information: This decision helps underscores other measures the DOL has taken to strengthen fair labor standards for farmworkers in the U.S.

This alert has been provided by the BAL U.S. Practice Group.

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