In today’s news and commentary, DOL issues a new wage rule expected to lower pay for H-2A workers, Gov. Newsom vetoes a bill that regulates employers’ use of AI, and Broadway workers and management reach a tentative deal. 

This month, DOL issued a new wage standard for H-2A temporary agricultural workers. When Congress created the H-2A visa program, it charged DOL with regulating the program in a way that prevented H-2A wages from undercutting similarly employed domestic agricultural workers. To do so, DOL requires employers to pay H-2A workers the highest wage out of (1) the federal minimum wage, (2) state minimum wage, (3) prevailing wage in a region or occupation, (4) a collectively bargained wage, or (5) the regional average farm wage, also known as the adverse effect wage rate (AEWR). Historically, AEWRs exceeded the state minimum wage and thus served as the effective baseline wage for both H-2A workers and their U.S.-based colleagues who work for the same employers. The new wage standard changes the methodology for calculating AEWRs and DOL acknowledges that it is expected to lower H-2A workers’ wages. Employers are also allowed to deduct the cost of housing, which they must provide to H-2A workers, from the workers’ hourly wages. DOL cited the need to avoid labor shortages and higher food prices as a reason for the change. Agricultural employers have celebrated the move, calling existing labor costs “unsustainable.” 

In California, Gov. Gavin Newsom vetoed Senate Bill No. 7, known as the “No Robo Bosses Act.” The legislation would have prevented employers from relying “solely” on so-called “automated-decision systems,” including AI software, to promote, terminate, or fire workers. It also would have required employers to provide written notice to employees and job applicants when AI is used in employment-related decisions. The bill was sponsored by the California Federation of Labor Unions, AFL-CIO, and passed both houses of the legislature. However, Gov. Newsom vetoed the bill, calling its provisions “broad restrictions” that could “take[] away a potentially valuable tool” without “directly address[ing] incidents of misuse.” The veto comes after the California Civil Rights Department recently finalized new regulations that stop employers from using AI systems that could discriminate against applicants or employees based on protected characteristics under state antidiscrimination law.

Lastly, on Saturday, Actors’ Equity reached a tentative agreement with The Broadway League, a trade association that represents theater owners, producers, and operators. Equity represents over 51,000  actors and stage managers and was fighting for more pay, higher health care contributions, and better working conditions, including less strenuous show scheduling and the availability of physical therapy. Equity had previously threatened a strike during peak theater attendance season after its contract expired on September 28. While the agreement has been sent to members for ratification, the League has yet to reach a deal with the American Federation of Musicians Local 802, which represents Broadway musicians and voted “overwhelmingly” to authorize a strike if negotiations stalled. The musicians’ existing contract expired on August 31. Equity stated that, on the heels of its marathon bargaining session, “we are putting our full support behind AFM Local 802.”