Since October 2, 2025, a new rule from the U.S. Department of Labor (DOL) has completely changed how minimum wages are calculated for temporary agricultural workers under the H-2A visa program.
“This rule will drastically reduce wages for farmworkers — both those who come through the H-2A program and U.S. workers,” said Lori Johnson, legal director of Farmworker Justice, in an interview with Enlace Latino NC.
While the impact varies by state, in North Carolina, minimum wages will drop from $16.16 to just $12.78.
“Farmworkers in North Carolina will earn about $5 less per hour,” said Letizia Zavala, union leader of El Futuro es Nuestro. She added, “They will also have to give up part of their wages to live in inadequate housing.”
It’s not just attorneys and labor leaders who see the measure as harmful. The workers themselves are deeply worried.
“Thanks to the H-2A visa, I’ve been able to build a small livelihood and give my family a better life. Trump wants to lower our wages and charge us for housing. It’s a hard blow to our economy and our ability to support our families,” said Juan Medrano, a Mexican farmworker who has spent several seasons working in North Carolina.
The controversial regulation was issued as an interim final rule, meaning it is already in effect. However, the public may submit comments until December 1, 2025, before a final version is issued.
From a Single Wage Rate to a Tiered System
Until now, the H-2A program was governed by a single wage rate known as the AEWR (Adverse Effect Wage Rate). This rate served as a mandatory floor for all farmworker pay, regardless of experience or crop type.
In North Carolina, the 2024 AEWR was $16.16 per hour — and no one could earn less.
The new rule breaks that structure, creating two wage levels:
- Level 1 (Skill Level I or Entry-Level): For workers with no experience or formal training.
- Level 2 (Skill Level II or Experienced): For jobs requiring experience or higher responsibility.
According to the DOL, the goal is to “better reflect actual labor market differences” and ease costs that the agency says are affecting agricultural production.
However, experts say that in practice, it’s simply a strategy to reduce wages.
“The rule creates arbitrary ‘skill level’ categories, supposedly to pay more to experienced workers. But it’s structured in a way that most jobs will fall under the lowest pay tier, regardless of how many years of experience workers actually have,” Johnson said.
Lower Pay if Employers Provide Housing
In addition to introducing two wage levels, the new rule includes another key change: employers will be allowed to deduct a “standard adjustment” from the pay of H-2A workers who receive free housing. The government argues that this benefit should count as part of their total compensation.
“Until now, H-2A workers received free housing as part of their contract, which made sense because they still have housing expenses in their home countries where their families live. Under the new rule, their hourly pay will be reduced to account for the cost of living in farm labor camps,” Johnson said.
In North Carolina, that deduction equals $1.69 per hour.
In practice, the effective minimum wage for Level 1 (Entry-Level) H-2A workers will be:
| Component | Rate |
|---|---|
| Base AEWR | $12.78/hour |
| Housing adjustment | –$1.69 |
| Effective pay with housing | $11.09/hour |
That means a farmworker who earned $16.16 per hour in 2024 could now earn $5 less per hour if their contract is classified as “entry-level.”
Direct Impact on H-2A Wages in North Carolina
North Carolina is one of the states with the highest number of H-2A workers.
In 2024, the state certified more than 32,000 positions under the program, most in the tobacco, nursery, and fruit and vegetable sectors.
With the new rule, thousands of workers could see their earnings drop — especially returning workers whose contracts employers classify as “entry-level.”
This doesn’t only affect foreign workers. “Local workers will also be affected — their wages will go down too,” warned Zavala.
Labor rights organizations in North Carolina expect the measure to widen wage inequality and reduce workers’ ability to cover basic expenses, especially in rural areas where the cost of living has increased in recent years.
An Economic and Political Argument
The DOL justified the change by citing a “structural labor shortage” in the agricultural sector.
According to the official text, tougher immigration policies — including deportations and the near-total closure of the southern border under the Trump administration — led to a 93% drop in irregular crossings, reducing the labor supply for the fields.
The government argues that by allowing lower wages for H-2A workers, employers will be able to continue hiring legally, avoid food price increases, and sustain national production.
Critics, however, say the real goal is to make agricultural labor cheaper during an election year in which the White House wants to show a tough stance on immigration while keeping large producers satisfied.
How Wages Are Changing in Other States
The impact varies by region, but the overall trend is the same: a sharp drop in H-2A minimum wages.
- Florida: AEWR dropped from $14.77 to $12.47/hour (Level 1).
- Georgia: from $14.68 to $12.27/hour.
- California: Level 1 rate is now $16.45/hour, down from $19.75.
- Texas: Level 1 AEWR is $11.81/hour.
On average, the new structure represents reductions of 10% to 30% compared with 2024 rates.
What Happens to Already-Signed Contracts
The rule states that H-2A contracts certified before October 2, 2025, must maintain the previous wage rates ($16.16 in North Carolina) until the end of the work period.
However, any new or renewed contracts submitted after that date must comply with the new wage levels.
What’s Next for H-2A Wages in North Carolina
The rule took effect immediately, but the DOL opened a public comment period through December 1, 2025.
During that time, unions, farmworker organizations, and agricultural associations can submit comments to docket ETA-2025-0008 through the regulations.gov portal.
“Farmworker Justice is working with other advocates to prepare formal comments, and lawsuits challenging the rule are expected,” Johnson said.
The DOL will then decide whether to keep the rule, amend it, or replace it with a final version.
A Decision With Deep Consequences
In practice, this is the largest wage reduction for H-2A workers in decades.
And while the government presents it as a measure to “save agricultural production and prevent food shortages,” many workers and labor advocates see it as a setback to the basic protections achieved in recent years.
“With this measure, the government is putting at risk the stability of thousands of families who depend on these wages,” said another farmworker who preferred to remain anonymous. “Field workers remain essential — but increasingly invisible.”
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