Webinar: The Incoming Administration

On December 17th, 2024, Seso hosted a webinar featuring insights into the potential impacts of the incoming administration on agricultural businesses. Moderated by Seso’s in-house attorneys Daniel Ross and Barron Dickinson, the panel included Diane Kurrle, Senior Vice President at the US Apple Association. With decades of experience navigating agriculture regulation and working directly with Congress, Diane joined Daniel and Barron in parsing the implications of key departmental shifts and policy changes.

If you’re an ag business owner wondering what’s next, this session is a must-watch. 

Watch the recording here for detailed analysis and actionable advice.

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Quick Hits: Key Insights from the Webinar

1. Adverse Effect Wage Rate (AEWR)

• The new AEWR went into effect on December 16th, 2024, for most H-2A employers. Employers in 17 states under an injunction will see rates take effect on December 30th, 2024.

• Compliance issues surrounding worker pay remain the leading liability for H-2A employers. In 2024, over $5M in back wages and $6M in CMPs were collected.

• Recommendation: Pay workers the new AEWR immediately—even mid-pay period—to avoid costly penalties.

2. Farmworker Protection Rule

• The rule’s implementation is complicated by injunctions in Mississippi and Kentucky, affecting certain participants, including members of the NCAE.

• As of November 27th, 2024, DOL is processing filings using old forms, requiring re-submission of applications with the new forms.

• Outlook: Unlikely to be withdrawn anytime soon despite legal challenges.

3. Cabinet Picks’ Impact on Ag Businesses: What we Know

• Lori Chavez-DeRemer (Secretary of Labor Nominee): Experience in specialty crops and H-2A advocacy is promising.

• Brooke Rollins (Secretary of Agriculture Nominee): An advocate for agriculture, with a history of addressing workforce and immigration issues.

4. Deportations and E-Verify

• Large-scale deportations are unlikely due to limited resources.

• Nationwide E-Verify could become mandatory as a workaround.

5. Risks to the H-2A Program

• No imminent cap or limits on the H-2A program are expected. Mechanization discussions remain speculative and financially unfeasible for most farms, making this an unlikely path for the new administration to pursue.

6. Audits and Enforcement

• Audit likelihood remains consistent across administrations, with regional enforcement variations.

• New DHS rules could expand onsite investigation authority and increase I-9 audits.

Webinar Highlights in Detail

Adverse Effect Wage Rate (AEWR)

The AEWR’s publication in the Federal Register on December 16th, 2024, marked a significant regulatory shift. Employers not under injunction saw immediate implementation, while those in 17 states will comply by December 30th. The DOL’s leniency on mid-pay period compliance offers some flexibility, but retroactive pay adjustments are mandatory. Employers should act swiftly to avoid fines—pay discrepancies remain the biggest source of fines.

Farmworker Protection Rule

The Farmworker Protection Rule continues to face legal challenges. Employers affected by the Mississippi and Kentucky injunctions must navigate operational changes, including refiling applications with old forms. Despite the legal pushback, the rule’s withdrawal is unlikely, emphasizing the need for proactive compliance.

Cabinet Picks and Policy Outlook

Diane highlighted several positive implications of Lori Chavez-DeRemer’s and Brooke Rollins’ nominations, namely that both nominees bring relevant agricultural and workforce experience, signaling potential stability for H-2A employers.

Deportations and E-Verify

While mass deportations are unlikely, the likelihood of nationwide E-Verify mandates may grow. Employers should prepare for increased compliance requirements to mitigate risks associated with workforce verification.

Mechanization and H-2A Risks

Speculative discussions around mechanization underscore its logistical and financial infeasibility for most farms. With no current proposals to cap the H-2A program, employers should focus on optimizing existing processes rather than fearing imminent restrictions.

Audits and I-9 Enforcement

Audit practices remain largely unchanged across administrations. However, new DHS rules could expand onsite investigations, making meticulous recordkeeping and compliance audits essential.

Actionable Takeaways

1. Update wages promptly to meet AEWR requirements and avoid penalties.

2. Refile applications as needed under the Farmworker Protection Rule.

3. Monitor developments on E-Verify and prepare for potential mandates.

4. Leverage Seso’s technology to streamline compliance and reduce human error.

Your Next Steps

Stay ahead of regulatory changes and compliance challenges with insights from Seso’s experts. Watch the full webinar recording here.

Ready to simplify your compliance processes? Discover how Seso’s solutions can make a difference. Request a demo today.