A federal judge in California has ruled that a Trump administration rule cutting wages for seasonal farmworkers was unlawful, ordering the Labor Department to develop a new methodology for calculating H-2A wage rates. U.S. District Judge Kirk E. Sherriff in Fresno concluded that the Labor Department failed to reasonably consider whether the rule could satisfy its legal obligation to ensure hiring H-2A workers would not adversely affect U.S. farmworkers’ wages.
The ruling comes after a lawsuit filed by the United Farm Workers of America and the UFW Foundation, along with more than a dozen farmworkers, who argued the rule would undercut wages for both H-2A visa holders and U.S. workers. The plaintiffs alleged the rule cut wages for H-2A workers by $3 to $7 per hour, potentially pressuring wages downward for American farmworkers in similar roles.
Judge Sherriff allowed the rule to remain temporarily in effect while the Labor Department develops a replacement methodology. He directed the agency to notify employers that backpay may be owed to H-2A workers and U.S. farmworkers if the new wage rates exceed what they were previously paid.
Background: The H-2A Visa Program and Wage Rules
The case centered on the Adverse Effect Wage Rate (AEWR), a federal requirement that employers pay H-2A workers a minimum wage set to prevent undercutting U.S. farmworkers’ pay. The Labor Department had argued the 2025 rule change was necessary to address labor shortages in agriculture and reduce costs for growers facing stricter immigration enforcement.
The plaintiffs presented evidence that wages in California fell from $19.97 to $16.90 per hour after the rule took effect—a 15% reduction affecting both H-2A and U.S. workers. The Labor Department did not immediately respond to requests for comment on the ruling.
Legal and Policy Implications
Judge Sherriff’s 28-page order criticized the Labor Department for bypassing much of the normal federal rulemaking process and failing to demonstrate how the rule would protect U.S. farmworkers from depressed wages. The court ordered the agency to quickly produce a new wage-setting methodology, warning that some employers could face backpay liability if replacement rates are higher than the current unlawful rates.
Teresa Romero, president of the United Farm Workers, stated in a press release: “This decision recognizes the essential work of farmworkers and that they should be paid fairly. The government must move quickly to issue new, legal wage rates that protect local farmworkers, and employers must be held accountable for paying back any difference.”
The ruling does not immediately vacate the rule, as the judge cited concerns about disrupting the agricultural labor market. However, the Labor Department is now required to act promptly to comply with the court’s order.