Judge Orders Labor Department to Revise H-2A Wage Rule
A federal judge ruled that the Labor Department's current agricultural wage calculation method is illegal.
Updated on Oct. 28, 2026 in Employment
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On August 26, 2026, United States District Judge Kirk Sherriff ordered the Labor Department to replace its H-2A farmworker wage rule by December 30. The court found that the agency failed to consider its legal duty to protect U.S. workers and bypassed required public comment processes.
Why it matters
The overturned 2025 rule created two pay tiers and allowed wage cuts to offset employer housing costs, shifting an estimated $2.46 billion annually from workers to employers. If the agency misses the December 30 deadline, wages are expected to revert to previous federal rates.
The 2025 rule dropped California H-2A minimum wages from $19.97 to $16.90 per hour. Meanwhile, California Governor Gavin Newsom signed AB 2646 to set a state-level floor of $19.75 per hour effective January 1, 2027.
The players
Kirk Sherriff
He is a United States District Judge serving in the Eastern District of California who issued the ruling against the current labor rule.
Gavin Newsom
He is the Governor of California who signed legislation to establish a higher state minimum wage for H-2A farmworkers.
Trump Organization
This real estate and hospitality company sought 36 H-2A workers for a Virginia winery at reduced rates under the now-contested rule.
The details
The Labor Department issued the interim final rule in October 2025, which utilized a nonfarm Bureau of Labor Statistics survey to set entry-level wages at roughly the 17th percentile of pay. The court ruling now mandates regular progress reports from the agency every three weeks.
Timeline
October 2, 2025: The Labor Department issued an interim final wage rule.
August 26, 2026: Judge Sherriff ruled the wage rule illegal.
December 30, 2026: Deadline for the Labor Department to replace the rule.
January 1, 2027: California law AB 2646 takes effect.
Macro View
The court's ruling fundamentally alters the implementation of the H-2A visa program by invalidating wage calculations that previously allowed for employer-side cost offsets. This intervention marks a significant shift, forcing the agency to realign its standards with historical labor protections.
Agricultural employers must prepare for potential adjustments to payroll as the Labor Department develops a new wage formula. Meanwhile, H-2A workers in California can anticipate a wage floor increase to $19.75 per hour starting in 2027 under new state law.
The takeaway
The court's decision highlights the critical importance of public comment processes in federal rulemaking. Agricultural employers should monitor the Labor Department's upcoming guidance to ensure compliance with shifting wage requirements.
What happens next
The Labor Department must provide progress reports to the court every three weeks until the December 30 deadline to replace the wage rule.
Further reading
For broader trends regarding federal labor policy and regulation, see the Employment section.
Source note: This article includes information reported by Fortune.
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