News

Farm labor wage ‘improvements’ not getting intended results

Rising labor costs are causing some farms to cut back on the work that needs to be done.  

National Council of Agricultural Employers President Michael Marsh tells Brownfield federally, farmworkers are exempt from earning overtime, but new state regulations have made it a requirement in some places.

“In those jurisdictions where they’ve done that, farm workers take home less pay because their hours get cut because the farmer simply can’t afford to pay them the overtime and still be profitable,” he shares.

There are less than 10 states that currently have overtime requirements for farmworkers.  Recent research at Colorado State University finds employers are likely to reduce worker hours by hiring more workers, investing in labor-saving technologies, or making other changes to reduce labor costs.

A new rule put in place this year by the Department of Labor set different wage rates for H-2A guest workers depending on their job descriptions. Marsh says that adjustment doesn’t take into consideration the many hats employees wear.

“It varies every day and they’re not really specialized because they have to be so diverse in their experience and apply that experience to the task at hand,” he says.

Marsh says farms continue to turn to labor-saving technologies and get out of labor-intensive production as costs increase.

New wage rates for the H-2A program will be released at the end of November for next year’s season.

Brownfield interviewed Marsh during this week’s Michigan State Universtiy Farm Labor Conference.