United Farm Workers v. The United States Department of Labor

District Court, E.D. California·Decided April 4, 2022·No. 1:20-cv-01690·Unknown

Opinion

UNITED FARM WORKERS, et al., No. 1:20-cv-01690-DAD-BAK Plaintiffs, v. ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT OF LABOR, et al., (Doc. No. 90) Defendants.

This matter is before the court on the motion for summary judgment filed by plaintiffs United Farm Workers and UFW Foundation on January 5, 2022. (Doc. No. 90.) Pursuant to General Order No. 617 addressing the public health emergency posed by the COVID-19 pandemic, plaintiffs’ motion was taken under submission on the papers. (Doc. No. 91.) For the reasons explained below, the court will grant plaintiffs’ motion. The administrative and factual record for this case is extensive and has been addressed at length in the court’s previous orders. (See Doc. Nos. 37, 58.) Nonetheless, for purposes of addressing plaintiffs’ pending motion for summary judgment, the court briefly summarizes the relevant factual background below. ///// On November 5, 2020, the Department of Labor (“DOL”) promulgated a Final Rule that amended the regulations governing the Adverse Effect Wage Rate (“AEWR”) calculation methodology. Adverse Effect Wage Rate Methodology for the Temporary Employment of H-2A Nonimmigrants in Non-Range Occupations in the United States, 85 Fed. Reg. 70,445 (Nov. 5, 2020) (“the Final Rule” or “the 2020 Rule”). On November 30, 2020, plaintiffs filed their complaint and a motion for a preliminary injunction, asking the court to enjoin the DOL from implementing the Final Rule. (Doc. No. 1.) On December 23, 2020, the court entered a preliminary injunction that prevented the DOL from implementing the 2020 Rule and required the DOL to set the 2021 AEWRs using the methodology set forth in the prior rule. (Doc. No. 37); see also Temporary Agricultural Employment of H-2A Aliens in the United States, 75 Fed. Reg. 6,884 (Feb. 12, 2010) (“2010 Rule”). In its order, the court concluded that plaintiffs were likely to prevail on the merits of their claims that (1) the Final Rule is arbitrary and capricious and that (2) the DOL failed to comply with the notice-and-comment rulemaking requirements in issuing the Final Rule. (Doc. No. 37 at 9–27.) The preliminary injunction issued by the court in December 2020 remains in effect. In compliance with the court’s preliminary injunction order, on February 23, 2021, the DOL published the 2021 AEWRs under the methodology provided in the 2010 Rule. See Labor Certification Process for the Temporary Employment of Aliens in Agriculture in the United States: 2021 Adverse Effect Wage Rates for Non-Range Occupations, 86 Fed. Reg. 10,996 (Feb. 23, 2021). The Farm Labor Survey (“FLS”) data on which the DOL relied found a five percent increase in the annual average gross wage for field and livestock workers (combined), from $13.99 to $14.62. USDA Nat’l Agric. Stat. Serv., Farm Labor at 2 (Feb. 22, 2021), https://perma.cc/FFM2-S3E2. On December 15, 2021, the DOL published the 2022 AEWRs, again using the most recent FLS data. See Labor Certification Process for the Temporary Employment of Foreign Workers in Agriculture in the United States: Adverse Effect Wage Rated for Non-Range Occupations in 2022, 86 Fed. Reg. 71,282 (Dec. 15, 2021). The latest FLS data revealed a six percent increase in the annual average gross wage for field and livestock workers ///// (combined), from $14.62 to $15.56. USDA Nat’l Agric. Stat. Serv., Farm Labor at 1 (Nov. 24, 2021), https://perma.cc/7LRA-7XBW. On August 24, 2021, the DOL transmitted to the Office of Management and Budget’s Office of Information and Regulatory Affairs a draft Notice of Proposed Rulemaking (“2021 NPRM”). Adverse Effect Wage Rate Methodology for the Temporary Employment of H-2A Nonimmigrants in Non-Range Occupations in the United States, Pending EO 12866 Regulatory Review (Aug. 24, 2021), https://www.reginfo.gov/public/do/eoDetails?rrid=191913. On December 1, 2021, the DOL published the 2021 NPRM. 86 Fed. Reg. 68,174. The 2021 NPRM recognizes the need for a new rulemaking in light of the court’s orders and the DOL’s recognition that continuing to rely on FLS data “will better enable the Department to meet its statutory obligation regarding adverse effect.” Id. at 68,177–78. Specifically, the DOL determined that two major aspects of the 2020 Rule “do not adequately protect against adverse impact: (1) The imposition of a 2-year wage freeze for field and livestock workers at a wage level based on the FLS survey published in November 2019, and (2) the use of the BLS ECI, Wages and Salaries, to annually adjust AEWRs for field and livestock workers annually thereafter.” Id. at 68,178. The DOL stated that these “policy decisions represent a significant departure from how minimum or prevailing wage determinations are issued to employers in other employment-based visa programs administered by the Department, and from how the Department has established the AEWR in the H-2A program for more than 30 years.” Id. Because the DOL “considers actual, current wage data to be the best source of information for determining prevailing wages, when an appropriate source is available,” “[u]sing a methodology other than actual, current wage data increases the likelihood of permitting employers to pay wages that are not reflective of market wages, which undermines the Department’s mandate to prevent an adverse effect on the wages of workers in the United States similarly employed.” Id. Consistent with those statements, the 2021 NPRM proposes to use the FLS to establish AEWRs for most H-2A jobs, while using Occupational Employment and Wage Statistics (“OEWS”) data for occupations where FLS data is unavailable. Id. The 2021 NPRM also recognizes that employers must pay the wage for the highest-paid occupation performed by an H-2A worker when their role covers multiple occupation classifications. Id. at 68,179; see also id. at 68,183–84. The public comment period for this new rule closed on January 31, 2022. Id. at 68,175. The DOL states that it is now in the process of reviewing the public comments and publishing a final rule. (Doc. No. 95 at 8.) On January 5, 2022, plaintiffs filed a motion for summary judgment in this action, in which they ask the court to vacate and remand the Final Rule, “which both this Court, and DOL through the 2021 NPRM, have recognized is legally flawed.” (Doc. No. 90 at 6.) On January 31, 2022, defendants filed their opposition to plaintiffs’ pending motion, in which they “respectfully request that the Court permit DOL’s rulemaking process to conclude before adjudicating Plaintiffs’ summary judgment motion.” (Doc. No. 95 at 5.) According to defendants, “[h]olding Plaintiffs’ motion in abeyance will cause no harm to Plaintiffs.” (Id.) On February 8, 2022, plaintiffs filed their reply. (Doc. No. 96.) Summary judgment is appropriate when the moving party “shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). In summary judgment practice, the moving party “initially bears the burden of proving the absence of a genuine issue of material fact.” In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir. 2010) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986)). The moving party may accomplish this by “citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials,” or by showing that such materials “do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissib

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