Amid strong support from Congressman Jeff Landry (R, LA-03), Louisiana agriculture employers have received good news -- the U.S. Department of Labor is delaying their new H-2B Wage Rule for 60 days. Under the Department of Labor's new methodology, employers would see a huge spike in payroll expenses as current wages of H-2B workers will be drastically increased -- in many cases more than 100%.
"In these challenging economic times, I believe Washington should be pursing policies that help our employers expand their businesses and increase hiring," said Landry -- a former small business owner in the oil and gas industry. "Unfortunately, the Department's H-2B Wage Rule threatens to do just the opposite; it will negatively affect the viability of companies using the H-2B program and could possibly lead to full-time job losses."
Many H-2B employers already pay the participants above-market wages, and the dramatic increase in labor costs caused by this rule change would threaten to drive them into bankruptcy. Furthermore, the seasonal nature of these businesses and industries means that they routinely face shortages of local workers during their peak work periods. By filling temporary jobs, H-2B workers not only keep these businesses open; they contribute to the creation of additional, year-round jobs for local workers.
"I am excited to share the news that Louisiana's hard-working business owners will not have to deal with this devastating rule change," proclaimed Landry. "The H-2B Final Wage Rule would increase wages to levels detrimental to Louisiana jobs. I am glad the Department of Labor has decided to delay their H-2B plans, and I remain committed to doing all I can to ensure this job-killing regulation never is imposed on our Louisiana job creators."