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H-2A Guestworker Program

September 3, 2009

NEW!  Secretary of Labor Hilda Solis Announces Proposal to Restore Labor Protections in H-2A Guestworker Program

The Labor Department today announced new proposed rules for the nation’s agricultural guestworker program which would largely reverse the Bush Administration’s harmful changes which slashed wages and vital worker protections in the program. 

The H-2A agricultural guestworker program is supposed to ensure that U.S. workers are offered decent wages and working conditions before employers are permitted to hire foreign guestworkers based on claimed labor shortages, but the Bush Administration’s changes gave agricultural employers access to cheap foreign labor with little government oversight.  The new proposal would restore the guarantee that US workers will be hired before foreign workers; a protection that was weakened under the Bush regulations.

The new proposal would also restore the wage system used under the previous regulations which will overcome wage cuts that US and foreign workers experienced during 2009 due to the Bush Administration’s changes; many workers lost about $2.00 per hour under the Bush rules.  H-2A workers in North Carolina, for example, earned $8.85/hr last year under the old regulations.  This year under the Bush rules, they are getting only $7.25/hr.  Under the wage rate calculation of the previous rules, these workers would be earning $9.34/hr this year.

Some changes that were made under the Bush Administration that were helpful will be retained.  For example, the farm labor contractors who bring in H-2A workers will have to post a bond so that when wage violations occur, the workers will have money to recover.

In addition, some improvements over the old rules have occurred that were long needed.  For example, the job offers that employers must submit to prove they are recruiting US workers will now be posted online so that US workers and their advocates can learn about them in a timely way.

The proposal is the latest attempt to reverse the Bush Administration’s changes to the program which were finalized in December of last year.

 

June 29, 2009

Devastating Decision for Farmworkers:

Federal court in North Carolina halts suspension of Bush H-2A rules

In December of 2008, the Bush Administration and then-Secretary of Labor Elaine Chao issued new regulations for the H-2A guest worker program that made devastating changes in job terms, labor protections and government oversight for farmworkers.  Last May, the Obama Administration and current Secretary of Labor Hilda Solis issued a decision to temporarily suspend those changes.

On June 29, 2009, the day on which the regulations were to be suspended, a North Carolina federal court issued a dire ruling temporarily stopping the suspension.  This ruling (a preliminary injunction) will apply throughout the country and means that the devastating impact of the Bush-Chao regulatory changes to the H-2A guestworker program will continue to harm farmworkers nationwide.

The ruling resulted from a lawsuit brought by agricultural employers, including the North Carolina Growers’ Association, the National Council of Agricultural Employers and several others, against the Department of Labor.  The growers alleged that DOL had acted illegally in its decision to suspend the Bush-Chao H-2A regulations and reinstate the former regulations.  The United Farm Workers (UFW) and individual farmworkers intervened in the lawsuit as defendants to oppose the growers’ demand for a preliminary injunction.  Farmworker Justice is co-counsel in the case. 

The Court’s ruling agreed with the growers that Secretary of Labor Hilda Solis probably acted illegally in suspending the Bush-Chao H-2A regulations.  The Court noted that the H-2A growers would suffer irreparable harm if not permitted to pay the lower wage rates that the Bush regime allowed, but was dismissive of farmworker arguments that farmworkers would in turn get lower pay.  So for now farmworkers in North Carolina will continue to receive lower wages; for example, $7.25 per hour, rather than the $9.34 per hour they should be paid. 

Background

As noted above, in December of last year, the Bush Administration’s Secretary of Labor Elaine Chao issued new regulations for the H-2A guest worker program that made devastating changes in job terms, labor protections and government oversight for farmworkers. The changes contravene our nation’s most basic labor and immigration policy concepts. 

On January 12, 2009, before the Bush-Chao regulations went into effect, the UFW, PCUN, and eight individual farmworkers (U.S. and H-2A workers) filed suit in the U.S. District Court for the District of Columbia against the Department of Labor to stop the devastating new regulations.  This lawsuit challenged the legality of the Bush-Chao regulations.  The plaintiffs (the farmworker unions and individual farmworkers) sought a preliminary injunction to prevent the new regulations from going into effect, but the Court denied them on the ground that at that time there was no evidence of the actual harm that would result from implementation of the Bush-Chao regulations (the Court said it was too early and that we were speculating about the harm).  The Bush-Chao regulations became effective on January 17, 2009, just three days before Bush left office.  We filed another motion challenging the legality of the lower wage rates under the Bush-Chao regulations and that motion is currently pending in the Court. 

Information about DOL's decision to suspend the Bush-Chao changes

In May, the DOL decided to suspend the Bush-Chao regulations (Federal Register Noticehttp://www.fwjustice.org/Immigration_Labor/pdf_button.png).  That decision was challenged in court by growers and a federal judge in North Carolina agreed and overturned the suspension (see above).

NYT article on suspension of Bush H-2A rules.

 

Information about DOL's proposal to suspend the changes

The proposal to suspend the Bush-Chao regulations was published in the Federal Register on March 17th (Federal Register Noticehttp://www.fwjustice.org/Immigration_Labor/pdf_button.pngand provided for a ten-day public comment period, which ended on Friday, March 27, 2009.  DOL reviewed the comments and issued a decision to suspend the regulations in May. 

*        Read sign-on comments submitted by organizations supporting the suspension of the Bush Administration's Regulationshttp://www.fwjustice.org/Immigration_Labor/pdf_button.png

*        Read a more detailed set of comments submitted by Farmworker Justice and other organizationshttp://www.fwjustice.org/Immigration_Labor/pdf_button.png

 


DOL Withdraws Interpretation of the Fair Labor Standards Act Concerning Relocation Expenses  

On March 26, 2009, DOL published a separate notice in the Federal Register that it was, effective immediately, officially withdrawing an interpretation of the Fair Labor Standards Act (a rejection of the Arriaga case) published on December 18 and 19 in the New H-2A and H-2B regulations.  The interpretation was included in the Preambles to both new regulations. Farmworker Justice supports DOL’s withdrawal of the flawed interpretation and urges DOL to act promptly to issue an affirmative statement about the impact of the Arriaga decision.

In December, when the Bush Administration published the final version of their new rules for our nation’s agricultural guestworker program, it included in the Preamble a discussion of a 2002 court case, Arriaga v. Florida Pacific Farms.  In this case, the court ruled that employers have to reimburse transportation costs and visa costs of the guestworkers they hire if those expenses made the workers' wages drop below the federal minimum wage.  The reasoning is that because they are costs incurred primarily for the benefit of the employer, they must be treated as deductions from wages.  The decision was based on similar rulings in other situations and was then followed by other courts.

Without providing any opportunity for notice and comment from the public on this important matter, the Bush Administration unlawfully concluded in the Final Rule’s Preamble that Arriaga was “wrongly decided.”
   This new interpretation raised the possibility that employers would not have to reimburse their employees for these types of expenses after all. Based entirely on this flawed interpretation, employers around the country argued that they didn’t have to re-pay these costs to their employees.  The Fifth Circuit Court of Appeals also came to the same conclusion in a February ruling in Castellanos-Contreras v Decatur Hotels.

On March 26, 2009, DOL published a notice in the Federal Register that it was, effective immediately, officially withdrawing the interpretation of the FLSA and rejection of Arriaga that appeared in the Preamble to the H-2A and H-2B Final Rules in December.