H.R. 5596: Freeze AEWR and Restore Monetary Sense Act

This bill, titled the "Freeze AEWR and Restore Monetary Sense Act" or "FARMS Act," proposes to temporarily halt the calculation of the Adverse Effect Wage Rate (AEWR) for two years. The AEWR is the minimum wage that employers must pay to nonimmigrant workers in certain visa categories, specifically those working in agriculture under the H-2A visa program.

Key Provisions of the Bill

• Authority to Retain AEWR: The bill allows the Secretary of Labor to keep the existing AEWR in place for a period of two years from the date the bill is enacted.
• Condition for Retention: This retention is contingent upon the Secretary's determination that there is no valid method available to calculate a new AEWR during that time frame.

Impact on Wage Calculation

The AEWR is intended to ensure that nonimmigrant workers are not paid less than the average wage for similar jobs in the U.S. However, the bill seeks to maintain the existing wage level instead of recalculating it based on current labor market conditions. If the Secretary of Labor cannot find a suitable method to reassess or update the AEWR, the current wage will remain in effect.

Objective

The aim of this legislation appears to be providing stability in wage rates for agricultural employers during a period of uncertainty regarding calculation methods, while also avoiding potential wage adjustments that might adversely affect their operational budgets.

Conclusion of Summary

Overall, the FARMS Act seeks to provide a temporary pause on changes to wage requirements for nonimmigrant agricultural workers, thereby locking in a wage rate that was established before the bill's enactment until an appropriate recalculation method is determined.

Relevant Companies

• MONS (Monsanto) - As a major agricultural company, any changes in labor wage requirements could significantly impact their hiring practices and cost structures.
• CARG (Cargo Holdings) - This company might be affected by labor costs associated with agricultural operations relying on H-2A workers.