Federal Court Orders Department of Labor to Develop New H-2A Wage Standards

A federal district court in California ruled on August 26, 2026, that the U.S. Department of Labor's (DOL) H-2A wage rule, which had reduced wages for temporary agricultural workers, was unlawful. The court found key portions of the rule to be arbitrary and capricious under the Administrative Procedure Act and directed the agency to develop a new wage-setting methodology. While the current rule remains temporarily in effect to avoid disruption, the DOL must create a replacement that complies with federal law.