Court Denies UFW Injunction on DOL AEWR Rule

Court Denies UFW Request to Block DOL's H-2A Wage Rule — What It Means for Agricultural Employers

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On May 14, 2026, a federal judge in the U.S. District Court for the Eastern District of California denied the United Farm Workers' motion for a preliminary injunction seeking to block the Department of Labor's October 2025 Adverse Effect Wage Rate Interim Final Rule. For H-2A employers who have been watching this case closely, the ruling is significant. The IFR remains in effect while the underlying litigation continues, and for now that is a meaningful win for agricultural employers across the country.

What Is the 2025 AEWR Interim Final Rule?

To understand why this ruling matters, it helps to understand what the IFR actually changed and why it was issued in the first place.

The Adverse Effect Wage Rate is the minimum hourly wage H-2A employers must pay their workers. For years, the AEWR was calculated using data from the USDA's Farm Labor Survey. That survey was discontinued by the USDA in 2025, leaving the Department of Labor without a data source to calculate AEWR rates under the existing methodology.

In response, DOL issued an Interim Final Rule on October 2, 2025, transitioning to a new wage calculation methodology based on the Bureau of Labor Statistics' Occupational Employment and Wage Statistics survey. The new system establishes a two-tier wage structure based on skill level rather than a single regional rate. Importantly, the IFR also introduced a housing adjustment factor that accounts for the free housing H-2A employers are required to provide, which DOL argued created an imbalance between what domestic workers and H-2A workers were effectively being paid.

Farm groups responded positively to the change. The National Council of Agricultural Employers called it a move that would bring H-2A wages "back to reality" after years of rapid increases that many employers said were putting American agriculture at a competitive disadvantage.

You can read more about how the new AEWR methodology works and what it means for your operation on our H-2A visa services page and in our H-2A housing requirements blog.

What Did UFW Argue?

The United Farm Workers filed their lawsuit in late 2025 challenging the IFR on several grounds. UFW argued that the new rule violated the Administrative Procedure Act, that DOL acted in an arbitrary and capricious manner, and that the rule failed to meet the legal standard that H-2A employment must not adversely affect the wages and working conditions of U.S. workers.

UFW also sought a preliminary injunction to block the IFR from taking effect while the case was litigated. Their argument was that the new methodology would cause immediate and irreparable harm to farmworkers by driving down wages.

Why Did the Court Deny the Injunction?

The court's reasoning was straightforward. To obtain a preliminary injunction, a party must demonstrate immediate and irreparable harm. The court found that UFW failed to meet that standard.

The court concluded that UFW had not been able to show farmworkers would suffer irreparable harm from the new rule, noting that irreparable harm traditionally includes harm for which there is no adequate remedy and that economic damages do not typically constitute irreparable harm. 

The court also noted that much of the evidence UFW presented involved anticipated future wage impacts rather than actual wage reductions that had already occurred, and that UFW's delay in seeking preliminary relief weighed against a finding of urgency. Because the court determined that UFW failed to establish irreparable harm, it did not need to address the broader legal arguments about whether the IFR was valid.

What Happens Next?

The denial of the preliminary injunction does not end the case. The underlying lawsuit continues on its merits, meaning UFW can still pursue its legal arguments that the IFR was improperly issued. That litigation will take time to work through the courts.

There is also another significant development on the horizon. The IFR currently in place is only an interim rule. DOL is expected to publish a Final Rule establishing the AEWR methodology that will govern the H-2A program going forward. Once issued, the Final Rule would likely render much of the current litigation moot, though it would also likely create another opportunity for UFW to challenge the new rule and seek injunctive relief against its implementation

In other words, this ruling is a win for H-2A employers today, but the legal landscape around AEWR methodology is not fully settled. LCI will continue monitoring developments and will communicate any updates that affect your filing obligations or wage requirements.

What Does This Mean for H-2A Employers Right Now?

For employers currently using the H-2A program, the practical takeaway is this. The October 2025 AEWR IFR remains fully in effect. You are required to pay wages according to the current two-tier methodology based on BLS OEWS data, not the old USDA Farm Labor Survey rates.

This means a few things worth confirming before your next filing:

Your job description and duty classification matter more than ever under the new system. Listing qualifications like CDLs, mechanical skills, or months of experience must be accurate to ensure your jobs are classified with the correct wage rates. Getting the classification wrong can result in underpayment or overpayment depending on which tier applies to your positions.

The housing adjustment is also now part of the wage calculation. If you provide free housing to your workers, the IFR accounts for that as additional compensation and adjusts the AEWR accordingly. Make sure your job order accurately reflects your housing situation.

If you have questions about how the current AEWR rates apply to your specific operation or how to structure your job order under the new methodology, reach out to your account manager directly.

A Note on John Hollay and NCAE

LCI is proud to have John Hollay, President and CEO of the National Council of Agricultural Employers, as a featured speaker at the LCI Conference this September in Coeur d'Alene. NCAE filed an Amicus Brief in support of the DOL's IFR in this case, and John has been a vocal advocate for the ruling, stating that "for too long, employers have been forced to pay wages that were detached from economic reality and put American agriculture at strategic disadvantage on the international market." 

Hearing directly from John at the conference this September will be a real opportunity to get ahead of what's coming next on the AEWR front and understand what the DOL's anticipated Final Rule might look like. If you haven't registered yet, you can do so at laborci.com/event/lci-conference.

The Second Update — English Language Requirements for CMV Operators

There is one additional update worth flagging that came out of DOL on the same day as the court ruling. On May 14, 2026, OFLC issued new guidance in the form of an FAQ clarifying English language proficiency requirements for H-2A, H-2B, CW-1, and PERM job orders that involve the operation of commercial motor vehicles.

The guidance follows President Trump's April 2025 executive order on truck driver regulations and makes clear that any job order requiring workers to operate a CMV must now expressly include an English language proficiency requirement in the application materials.

This is worth paying attention to for agricultural employers specifically. A CMV is broadly defined under federal regulations and may include certain larger farm vehicles even when a CDL is not required. If your workers drive trucks, buses, or other qualifying vehicles as part of their duties, review your job order language carefully to confirm it includes the required English proficiency language. OFLC will be looking for this in applications going forward.

If you are unsure whether your operation is affected, contact your LCI account manager and we can review your job description with you before your next filing.

Stay Informed

The H-2A regulatory environment is moving quickly right now. Between the AEWR litigation, the anticipated Final Rule, and the new CMV English language guidance, there is a lot to keep track of heading into the second half of 2026. LCI monitors DOL and USCIS updates closely and will continue sharing news that matters to your operation.

For more on the H-2A program and what these changes mean for your filing, visit our H-2A visa services page, check our FAQ page, or contact us directly.

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