October 8 , 2010

AHC WASHINGTON UPDATE

Department of Labor Proposes Changes
to H-2B Visa Program

This week the Department of Labor (DOL) issued a notice of proposed rulemaking concerning the H-2B program.

The H-2B program is used by members of the horse industry, principally horse trainers and owners who cannot find American workers to fill semi-skilled jobs at racetracks, horse shows, fairs and in similar non-agricultural activities.

Proposed Rule

The proposed rule would change the way wage rates are calculated for H-2B workers. While new rules governing the H-2B program went into effect January 18, 2009 no changes were made at that time to the manner in which the wage rate was calculated for H-2B workers.

The DOL has stated this proposed rule is in response to the August 30th ruling of the U.S. District Court for the Eastern District of Pennsylvania that the current regulations governing the H-2B prevailing wage rate violate the Administrative Procedure Act.
Currently, employers are required to pay H-2B and American workers recruited in connection with an H-2B job application either the prevailing wage, the federal minimum wage, the state minimum wage or the local minimum wage whichever is highest. The proposed rule would make changes to the manner in which the prevailing wage is determined.
The proposed rule would base the prevailing wage on the highest of the following:

Wages established under an agreed-upon collective bargaining agreement.
A wage rate established under the Davis-Bacon Act or the Service Contract Act for that occupation in the area of intended employment.
The arithmetic mean wage rate established by the Occupational Employment Statistics (OES) wage survey for that occupation in the area of intended employment.

The proposed rule removes use of a four-tier wage structure tied to skill levels that is currently an option for calculating the prevailing wage. It also eliminates use of employer provided wage surveys.

Comments on the proposed rule are due on November 4th. The complete proposed rule can be found by visiting this link.

The American Horse Council is currently reviewing and determining the impact the proposed rule will have on the horse industry and will submit comments to the DOL.

If you have any questions please contact the AHC.

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The American Horse Council keeps you up to date with electronic AHC Washington Update that reports on Congressional action and other important issues affecting the industry. The AHC Washington Update is a member benefit, and thus, is not intended to reproduction. For more information on federal legislation, equine health and regulatory issues, taxes, animal welfare, racing, recreation, and showing please visit our website at www.horsecouncil.org

As the national association representing all segments of the horse industry in Washington, DC, the American Horse Council works daily to represent your equine interests and opportunities.

American Horse Council

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