California Gov. Gavin Newsom has signed a law establishing a $19.75 hourly minimum wage for certain farmworkers beginning in 2027, as the Trump administration faces a federal court deadline to replace its rules governing agricultural guest worker pay.
Newsom signed Assembly Bill 2646 on September 30, 2026, creating a higher wage floor for foreign seasonal agricultural workers and California residents performing comparable jobs. The legislation, introduced by Democratic Assemblymember Maggy Krell of Sacramento, takes effect January 1, 2027, and applies to employees covered by specified temporary agricultural hiring programs, including the federal H-2A visa system.
The $19.75 base rate is $2.85 above California's current statewide minimum wage of $16.90, which will rise to $17.40 in January. The agricultural rate will receive an annual adjustment tied to the Social Security cost-of-living increase, beginning January 1, 2027, meaning the initial required wage could exceed $19.75.
Under the law, covered workers include agricultural employees living outside California who are approved for temporary or seasonal employment through designated state hiring procedures. California residents performing the same or substantially similar work for the same employer, in the same county and during the same period, also qualify. That definition extends state wage protections to some domestic employees beyond those covered by federal H-2A rules.
The legislation comes amid a federal legal battle over the H-2A program, which allows agricultural employers to recruit temporary foreign workers when sufficient domestic labor is unavailable. Participating employers must pay the highest applicable rate among several federal and state wage standards, including a benchmark known as the Adverse Effect Wage Rate, which is designed to protect domestic agricultural wages.
In October 2025, the Trump administration's Department of Labor revised the federal wage formula, introducing lower pay categories and deductions associated with employer-provided housing. The United Farm Workers union and 18 individual farmworkers challenged the changes in federal court, arguing that the revised calculations unlawfully reduced wages.
U.S. District Judge Kirk E. Sherriff found the administration's methodology unlawful in an August 2026 ruling, concluding that the Labor Department had failed to adequately justify its changes and violated federal rulemaking requirements. He directed the agency to develop a lawful replacement while temporarily allowing the challenged wage rates to remain in effect.
The court also required the Labor Department to warn employers that they could owe back wages if the replacement formula establishes higher rates. The agency issued that notice on September 2, identifying a potential period for retroactive wage adjustments affecting qualifying H-2A employees and domestic farmworkers.
On October 2, the Sheriff imposed a December 30, 2026, deadline for the Labor Department to issue a new interim wage rule. He also ordered the existing regulation vacated on that date after rejecting the administration's request for additional time to develop a replacement.
California's new law establishes an independent state wage floor that applies alongside federal requirements. Covered employers must comply with the highest applicable rate, regardless of how the federal government revises its wage calculations.
Krell and other supporters said the legislation would protect agricultural employees from reduced pay following the administration's changes. Supporters framed the measure as a way to preserve wage protections for both foreign guest workers and California residents working alongside them.
Agricultural industry groups opposed the measure, warning that higher labor costs would place additional financial pressure on California farms. Western Growers President and CEO Dave Puglia criticized the legislation after Newsom signed it, arguing that many producers already face substantial operating expenses and could struggle to absorb the new wage requirement.
The association warned that additional expenses could affect grocery prices and make California-grown products less competitive with agricultural imports. Western Growers has also said it is evaluating possible legal action against AB 2646, although it has not announced a lawsuit challenging the law.
California's Labor Commissioner will enforce the new wage standard through existing state procedures. The federal wage dispute is scheduled to advance with another court status report on October 22, ahead of the December 30 deadline for the Labor Department's replacement regulation.
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