Foreign farm workers get new wage floor, tied to local wages and housing costs
What happened
The US Labor Department changed how it calculates minimum wages for temporary foreign farm workers. Their pay will now be based on local wage data and adjusted for employer-provided housing.
Why it matters
For years, the minimum wage for these workers was based on a national survey that did not always reflect local labor markets. This change means foreign farm workers will likely see higher wages, especially in areas where local wages are higher. It also means employers will have to factor in the value of housing when calculating pay, which could increase their labor costs.
The signal
Watch for changes in the number of H-2A visa applications from farmers in different states, especially those with historically lower wages for these workers.