Freeze AEWR and Restore Monetary Sense Act; FARMS Act
Summary
The "Freeze AEWR and Restore Monetary Sense Act" (FARMS Act) proposes to authorize the Secretary of Labor to temporarily retain the existing adverse effect wage rate (AEWR) for up to two years. This would occur if the Secretary determines that there is no valid method to calculate the rate. The bill addresses wage rates for nonimmigrant workers admitted under the H-2A visa program.
The bill aims to provide stability in agricultural labor costs during a period where the calculation method for AEWR is deemed invalid. This could affect both employers and employees in the agricultural sector.
The bill was introduced in the House of Representatives and referred to the Committee on the Judiciary.
Expected Effects
If enacted, the FARMS Act would freeze the AEWR at the level in effect on the date of enactment for a maximum of two years. This would prevent potential fluctuations in wage rates for H-2A workers. The immediate effect would be felt by agricultural employers who utilize the H-2A visa program and the foreign workers employed under it.
This could lead to more predictable labor costs for agricultural businesses. It could also potentially impact the earnings of H-2A workers, depending on whether the existing rate is higher or lower than what a newly calculated rate would be.
Potential Benefits
- Provides stability and predictability in labor costs for agricultural employers using the H-2A visa program.
- Avoids potential disruptions caused by fluctuations in the AEWR if the calculation method is deemed invalid.
- May prevent potential wage decreases for H-2A workers if the existing rate is higher than a newly calculated rate.
- Could simplify budgeting and financial planning for agricultural businesses.
- Potentially reduces administrative burden associated with frequent wage rate adjustments.
Most Benefited Areas:
Potential Disadvantages
- May prevent potential wage increases for H-2A workers if the existing rate is lower than a newly calculated rate.
- Could lead to wages that do not accurately reflect current market conditions or cost of living.
- May disincentivize the development of a valid and accurate AEWR calculation method.
- Could create uncertainty after the two-year period if a new calculation method is still not available.
- May face opposition from labor advocates who argue for regular wage adjustments to protect worker earnings.
Constitutional Alignment
The bill appears to align with the Constitution, specifically Article I, Section 8, which grants Congress the power to regulate commerce and establish laws related to immigration and labor. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights.
However, the potential impact on wages and working conditions could raise questions related to the general welfare clause. The bill's impact on the H-2A visa program and its effects on both employers and employees would need to be considered to ensure it aligns with the constitutional principles of fairness and justice.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).