September 20, 2024
For Immediate Release
Contact: Michael Marsh, President and CEO
(202) 629-9320
(Arlington, VA) The U.S. District Court in the Western District of Louisiana granted a preliminary injunction that prohibits the Department of Labor (Department) from enforcing certain aspects of their wage rule that double labor costs for Louisiana sugarcane farmers, increasing input costs for products nationwide. The National Council of Agricultural Employers (NCAE) applauds the Court’s decision granting the injunction against this unlawful regulation.
In the case Teche Vermilion Sugar Cane Growers Association Inc., et al. v. Julie Su, et al. (Vermilion), the Court granted a preliminary injunction for Louisiana farmers using H-2A agricultural workers in duties which include hauling sugarcane using heavy or tractor-tailor trucks. Vermilion challenged the Department’s 2023 Adverse Effect Wage Rate Final Rule (Final Rule) which reclassified certain workers and arbitrarily increased wages that employers must pay their H-2A workers and any workers in corresponding duties. The Final Rule effectively doubled the cost of labor for farmers, inflicting lasting damage on their businesses, their workers, and the U.S. economy.
In the ruling, the Court noted that the Department offered minimal response to comments explaining the dramatic costs, no explanation or analysis to comments regarding the differences in job duties, nor whether the department considered the impact on the broader economy.
“NCAE and our members have repeatedly explained to the Department that their regulations make no economic sense,” stated Michael Marsh, NCAE President and CEO. “Frustratingly, those comments have been ignored and we are grateful that the Court in Louisiana acknowledged this lack of consideration America’s farmers and ranchers are due.”
“We are actively involved in litigation in Florida related to the Final Rule and hope that this Decision will just represent the first of many dominoes to fall so America’s farm and ranch families nationwide can experience the same relief as Louisiana’s sugar cane growers.”
NCAE is the national trade association focusing on agricultural labor issues from the employer’s viewpoint.
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