Understanding the Adverse Effect Wage Rate and Its Legal Implications

Q: How is the AEWR determined?

The AEWR is set by the U.S. Employment Service based on labor market data and conditions.

Q: Do all employers have to pay the AEWR?

Yes, any employer hiring foreign workers under certain visa programs must pay at least the AEWR for the relevant occupation and area.

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.

Table of content

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.

Key legal elements

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)

State-by-state differences

State	AEWR Example
California	Higher AEWR for agricultural work due to cost of living.
Texas	Lower AEWR compared to California for similar occupations.
Florida	Specific AEWR for tourism-related jobs during peak seasons.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition
Minimum Wage	The lowest wage permitted by law, applicable to all workers.
Prevailing Wage	The average wage paid to similarly employed workers in a specific area.
Adverse Effect Wage Rate	A wage rate specifically set to protect U.S. workers from wage suppression due to foreign labor.

Common misunderstandings

What to do if this term applies to you

If you are an employer looking to hire foreign workers, ensure that you are familiar with the AEWR applicable to your region and occupation. You can access legal form templates through US Legal Forms to assist with compliance and documentation. If your situation is complex or you have specific legal questions, consider consulting a legal professional for tailored advice.

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Quick facts

Minimum wage varies by occupation and location.
Determined by the U.S. Employment Service.
Compliance is essential for employers hiring foreign workers.
Regularly adjusted based on labor market conditions.

Key takeaways

FAQs

What is the purpose of the AEWR?

The AEWR ensures that the employment of foreign workers does not negatively impact the wages of U.S. workers in similar jobs.