Federal judge rules Trump administration H-2A wage cuts for farmworkers are unlawful

California wage data show a sharp immediate impact under the rule, with California wages for H-2A and local farmworkers dropping from $19.97 to $16.90 per hour (a 15% cut).
U.S. District Judge Kirk E. Sherriff did not vacate the rule outright but ordered the Labor Department to promptly develop a new, lawful wage-setting methodology and warned employers may owe backpay if the replacement wages exceed current rates.
The lawsuit was led by the United Farm Workers and included more than a dozen farmworkers as plaintiffs; amici briefs supporting the challenge came from five former Secretaries of Labor, 13 state attorneys general, and lawmakers including Senators Padilla and Schiff and Representative Lofgren.
Financial impact estimates cited in coverage vary: the Department of Labor had projected about $2.46 billion in annual wage transfers to employers, while other analyses (and the Trump administration’s own note) suggested up to about $17 billion over a decade; independent group Economic Policy Institute projected up to $3 billion in annual wage reductions.
A federal judge ruled the Trump administration's plan to cut wages for H-2A farmworkers was illegal and arbitrary Courthouse News. Judge Kirk E. Sherriff ordered the Labor Department to create a new wage-setting method that protects U.S. workers. The rule slashed farmworker pay by up to $7 per hour, dropping California wages from $19.97 to $16.90 hourly HuffPost.
The judge kept the wage cuts in place temporarily but warned employers may owe backpay if higher wages are set later Yahoo News. The United Farm Workers and more than a dozen farmworkers sued, with support from five former Labor Secretaries and 13 state attorneys general. The financial impact could reach $3 billion in annual wage losses Economic Policy Institute.
Judge Sherriff ruled that the Labor Department violated federal law by bypassing standard rulemaking procedures Courthouse News. The agency used an "arbitrary and capricious" formula without holding public hearings. Legal experts say this violated the Administrative Procedure Act, which requires agencies to gather public comment before making major rule changes.
The wage cut hit farmworkers immediately and hard HuffPost. In California, the average H-2A wage fell from $19.97 to $16.90 per hour—a 15% drop. The Labor Department had projected this would transfer about $2.46 billion annually from workers to employers HuffPost. Some analyses suggest the true cost could reach $17 billion over a decade.
The United Farm Workers led the lawsuit with strong backing Yahoo News. Five former Labor Secretaries filed briefs supporting the challenge, along with 13 state attorneys general and lawmakers including Senators Padilla and Schiff. The judge's decision protects farmworkers from depressed wages that harm U.S. workers competing for the same jobs.
Judge Sherriff did not completely cancel the rule Courthouse News. Instead, he ordered the Labor Department to promptly create a lawful wage-setting formula. The court warned that if the new method sets higher wages, employers may have to pay backpay to farmworkers for losses under the old rule.
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