H-2A Guest Worker Minimum Wages Up in 2020, 57% above New State Minimums

David BierTwo dozen  states are raisingtheir minimum wages in 2020. While the federal government ’s minimum for all workers remains the same, the feds have hiked one minimum wage in 2020: theAdverse Effect Wage Rate (AEWR) paid to H-2A foreign seasonal farm workers. Despite the state changes, this rate will still far exceed the federal or state minimum wage in every state in 2020 by an average difference of 57 percent.The AEWR is the Department of Labor (DOL)-mandated wage for H-2A seasonal farm workers. Farmers who hire even a single H-2A worker must also pay the AEWR to every American worker as well if it is higher than what they would otherwise receive. Except for Alaska, each state has its own AEWR, which runfrom $11.71 to $15.83 per hour in 2020 (based on 15 regions). State minimum wages start at the federal minimum of$7.25 hourly and go to $13.50 in the state of Washington.In every state, the AEWR far outstrips every state minimum. The average difference between each state ’s AEWR and its minimum wage is 57 percent in 2020. In Iowa, Indiana, Kansas, New Hampshire, North Dakota, Utah, and Wisconsin, the AEWR is fully double the state minimum wage. In 2020, DOL is raising the straight average by 5.5 percent from $12.96 to $13.68 hourly. Every state will see the AEWR i ncrease with Ohio seeing the largest increase of 9.5 percent.The 2020 rate increases continue a 2-decade AEWR march higher. Since 2000, the AEWR has increased from a nominal wage of $7.21 (straight aver...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs