H-2A Program
H-2A Wages: The New Skill-Based AEWR
On October 2, 2025, the Department of Labor replaced the single statewide AEWR with a two-tier, skill-based wage system and a new housing adjustment. Here's what changed — and how to calculate the wage you must pay in 2026.
Talk to JTP about your 2026 H-2A wage plan →What Changed
The Biggest H-2A Wage Change in a Decade
For years, H-2A employers paid a single Adverse Effect Wage Rate (AEWR) for their state — the same rate whether the worker was a first-day fruit picker or a veteran equipment operator. Effective October 2, 2025, a DOL Interim Final Rule ended that system for all new H-2A job orders.
Two changes replaced it: wages are now set by skill level using Bureau of Labor Statistics (BLS) data, and — for the first time — employers may take a housing adjustment against the H-2A cash wage. The result can lower labor costs for entry-level roles, but the compliance burden is significantly higher.
Before Oct. 2025
One statewide rate
A single AEWR from the USDA Farm Labor Survey applied to almost every farm job in the state. Everyone was paid the same rate regardless of skill or experience.
Today
Two skill tiers + housing adjustment
Wages are set by skill level using BLS data, and employers may apply an optional per-state housing adjustment to the H-2A cash wage.
Skill-Based Wages
Two Wage Tiers: Skill Level I and Skill Level II
Skill Level I
Entry-LevelFor roles that need little to no experience (generally 0–2 months), no certifications, and work that is closely supervised. Examples: hand-harvesters, field packers, and planting or weeding crews — most general farm labor. In most states, the Skill Level I rate is lower than the old single AEWR.
Skill Level II
Experience-LevelFor roles that require prior experience, certifications, or technical knowledge, performed with less supervision. Examples: agricultural equipment operators, crew supervisors, and certified pesticide applicators. The Skill Level II rate is often higher than the old AEWR.
Your job descriptions now determine the wage. Misclassifying a Skill Level II role — a tractor operator, for example — as Skill Level I is one of the fastest ways to trigger a DOL audit and back-wage liability.
Housing Adjustment
The New Housing Adjustment
Because H-2A employers must provide free housing, the DOL now lets employers take a downward compensation adjustment — a set dollar-per-hour amount for each state (roughly $1.50/hour in some states to $3.00/hour in others) — against the H-2A worker's AEWR. It is not a deduction; it is part of calculating the final cash wage.
Trap 1: Minimum wage is the floor
You must pay the highest of the adjusted AEWR, the state minimum wage, or the federal minimum wage ($7.25). In higher-minimum-wage states like California, New York, and Washington, the state minimum can override your adjusted rate.
Trap 2: H-2A workers only
The housing adjustment applies to H-2A workers only — not to US workers in corresponding employment. Those workers must be paid the full, un-adjusted AEWR for the same job.
The Calculation
How to Calculate the Wage You Must Pay
For each job, the required cash wage is the highest of these three figures:
- →(Skill Level I or II AEWR) − (your state’s housing adjustment)
- →Your state minimum wage
- →The federal minimum wage ($7.25)
Example
If the Skill Level I AEWR is $16.00/hour and your state's housing adjustment is $1.50/hour, the adjusted rate is $14.50/hour. But if your state minimum wage is $15.00/hour, you must pay $15.00 — the minimum wage wins.
Find Your Rate
Look Up Your State's 2026 Rates
Because rates now vary by skill level and state — and shift with the housing adjustment and the state minimum wage — there is no longer a single number to publish per state. Find the current Skill Level I and Skill Level II AEWRs and your state's housing adjustment on the DOL's FLAG portal, then apply the calculation above.
Need Help Getting the New Rules Right?
The new skill-based AEWR can lower your labor costs, but misclassification and miscalculation carry real audit and back-wage risk. JTP Agency classifies your roles, writes compliant job orders, and builds a 2026 wage plan that holds up — and handles the full H-2A process: DOL clearance, worker sourcing, visa coordination, and arrival logistics.
This page is a general summary of the October 2, 2025 Interim Final Rule and is not legal advice. Verify current Skill Level I/II AEWRs, housing adjustments, and state minimum wages at dol.gov before filing.