California Farmworker Wage Hike May Increase Shopper Costs, Farmers Warn

A new California law will increase the minimum wage for farmworkers to $19.75 per hour, a move aimed at supporting some of the state's lowest-paid laborers. The legislation, Assembly Bill 2646, applies to workers in the federal H-2A guest worker program and domestic farmworkers performing similar tasks. This represents an increase from the previous minimum wage of $16.90 per hour for these employees.

Lawmakers supporting the bill stated it is intended to assist farmworkers, many of whom they argue are struggling financially despite earning above the previous minimum wage. Assemblymember Maggy Krell, the bill's author, emphasized the necessity of the wage floor for those performing demanding agricultural labor.

However, farmers are expressing concern that the increased labor costs will be passed on to consumers, potentially leading to higher food prices. Joe Del Bosque, a farmer in Fresno County, told ABC 30 that the timing of the bill is challenging, as farms are already contending with rising costs for fuel, fertilizer, and other supplies. He suggested that consumers will ultimately bear the burden of these increased labor expenses.

"People are complaining about affordability. They’re complaining about the cost of food. They’re complaining about job loss and businesses moving out of the state, and then they come up with this bill that is no doubt going to increase the cost to farmers and eventually to consumers," Del Bosque said.

Agricultural industry groups, including the Western Growers Association, had opposed the bill, citing potential impacts on competitiveness. In a letter to lawmakers, these associations argued that an additional sector-specific wage mandate would make it more difficult for businesses to compete with producers in other states and countries, potentially affecting production levels and job availability in rural communities.

Some farmers also warned that to offset the higher wage costs, they might need to reduce the number of employees or cut working hours, which could negatively impact farmworkers themselves.

Under the new law, the $19.75 minimum wage is subject to annual adjustments for inflation and cost-of-living increases. The Western Growers Association has stated it is considering legal action in response to the law.