The New H-2A Wage Rules and What They Mean

1. What Changed

The U.S. Department of Labor (DOL) has released new rules that change how farms must pay H-2A workers (temporary agricultural visa workers).

Key changes:

• The old wage data from the USDA Farm Labor Survey (FLS) is gone.
• Wages will now come from the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) program.
• There are now two skill levels for pay rates:
• Level 1: Entry-level work (0–2 months experience)
• Level 2: Skilled work (3+ months experience or special qualifications such as a commercial driver’s license).
• H-2A wages now include a built-in housing cost adjustment called the Adverse Compensation Adjustment (ACA) that lowers the hourly rate to offset the cost of housing employers must provide.
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These new rates apply to any new H-2A contracts filed after October 2, 2025.

2. What This Means for Farms

Farms now need to:

• Assign each job or worker to either Level 1 or Level 2 pay.
• Apply the correct housing adjustment for H-2A workers.
• Track what kind of work employees do most often (for example, harvesting vs. driving) because that determines the right pay code.
• Make sure no one earns below the state minimum wage after all adjustments.
• If crews work across states, track hours by state or pay the higher state rate.‍

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This adds a lot of new recordkeeping and payroll complexity, especially for farms with mixed crews or multiple job types.

3. How Agri-Trak Helps

Agri-Trak’s upcoming updates were built specifically for this change.

• Level-Based Pay Rates: Easily set Level 1 and Level 2 pay for each worker or contract.
• Housing Adjustment Field: Automatically applies and calculates the hourly housing offset (currently $2.40/hour).
• Job Type Rate Assignment: Assign pay rates based on job type (for example, packing vs. driving) so each worker gets the right wage.
• Multi-State and Minimum Wage Protection: Automatically flags when rates drop below your state’s required minimum or when crews cross state lines.
• Full Digital Recordkeeping: Everything is logged for compliance—no paper timesheets or manual recalculations needed.

4. Why It Matters

These changes make payroll and compliance more complex, but Agri-Trak simplifies everything:

• Ensures farms pay correctly under the new law.
• Automatically calculates the right rate and adjustments.
• Keeps digital proof of compliance ready for audits.
• Saves time and prevents costly payroll mistakes.

TLDR Summary

New H-2A Regulations:

• Rate Changes: The H-2A program is introducing two levels of pay rates, level one and level two, with rates going down for the first time. Level one rate is $15.60 per hour, and level two rate is $18.50 per hour.
• Housing Adjustment: If housing is provided, there will be a $2.40 per hour deduction from the pay rate.

New Features Being Developed:

• Level-Based Pay Rates: Agri Track is being updated to handle the new level-based pay rates. This involves adding fields for level one and level two rates on contracts and assigning employees to these levels.
• Housing Adjustment Field: A new field will be added to contracts to account for the housing adjustment. This will automatically calculate and subtract $2.40 per hour from the gross pay for employees who are provided housing.
• Job Type Rate Assignment: The system will allow for assigning different rates based on job types, which can be categorized as level one, level two, or custom rates. This helps manage scenarios where the same employee might perform tasks that fall under different levels.

These features aim to streamline the payroll process and ensure compliance with the new regulations, making it easier for farms to manage their H-2A workforce effectively.

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