Understanding the Adverse Effect Wage Rate and Its Legal Implications
Definition & Meaning
The Adverse Effect Wage Rate (AEWR) is the minimum wage that must be paid to both foreign and U.S. workers in certain occupations and geographic areas. This wage is determined by the Administrator of the United States Employment Service to ensure that the wages of U.S. workers are not negatively impacted by the employment of foreign workers. The AEWR is designed to protect the integrity of the labor market by preventing wage suppression in specific job sectors.
Legal Use & context
The AEWR is primarily used in the context of labor and employment law, particularly in relation to the hiring of foreign workers through visa programs such as the H-2A and H-2B programs. Employers seeking to hire foreign labor must comply with the AEWR to ensure fair compensation for all workers. This term is relevant for employers, labor advocates, and legal professionals involved in employment practices and immigration law.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A farm in California hires seasonal agricultural workers. To comply with the AEWR, the farm must pay its workers, both U.S. and foreign, at least the AEWR set for agricultural labor in that region.
Example 2: A construction company in New York seeks to hire foreign workers under the H-2B visa program. The company must ensure that the wages offered meet or exceed the AEWR for construction workers in New York City. (hypothetical example)