FR 2025-04904

General Summary

The U.S. Department of Labor's Employment and Training Administration has published an update concerning the financial aspects associated with hiring foreign workers under the H-2A and H-2B temporary work programs. These updates revolve primarily around the costs that employers can charge these workers for meals and the reimbursement for travel-related expenses. In 2025, employers with H-2A workers, specifically in sectors other than herding or livestock production, can charge up to $16.28 per day for meals. This maximum charge can only be exceeded with proper authorization from officials. Additionally, when H-2A and H-2B workers reach 50% of their contract period, their travel costs need to be reimbursed according to specified per diem rates. These updates become effective on March 24, 2025.

Significant Issues or Concerns

One significant issue arising from this update is the complexity of the documentation and requirements. The frequent references to legal codes (such as 20 CFR 655.173) without immediate explanations could pose challenges for those unfamiliar with legal jargon, making it difficult to understand the exact obligations and criteria. Furthermore, while the document indicates a maximum amount for subsistence reimbursement when receipts are provided, it does not clearly specify the conditions when receipts are absent, which might lead to ambiguity.

The document also heavily depends on external resources and URLs for further information. There is a risk that these URLs might become inaccessible over time, potentially limiting the ability to find specific information in the future.

Impact on the General Public

For the general public, particularly those interested in or affected by the H-2A and H-2B programs, this update outlines specific financial obligations and allowances for both employers and employees. Clear knowledge of these changes can aid in understanding the cost implications for participating in such work programs.

Impact on Specific Stakeholders

For employers, these updates clarify the monetary limits and procedural expectations they must adhere to when providing meals and reimbursing travel for H-2A and H-2B workers. Adhering to these rules is crucial for maintaining compliance and avoiding potential legal penalties. However, the complexity of these requirements might also necessitate additional resources or consultation with legal experts to ensure thorough understanding and compliance.

For H-2A and H-2B workers, these updates can have both positive and negative impacts. On the positive side, clear rules regarding meal charges and travel reimbursement can offer more predictable financial planning while working in the U.S. On the negative side, the complexity of the reimbursement process and documentation required might lead to difficulties in claiming these entitlements, especially for those unfamiliar with U.S. legal and administrative processes.

Overall, while the attempt to set clear standards for charges and reimbursements is commendable, the inherent complexity in the document suggests there might be room for simplifying the provisions to enhance understanding and compliance for all parties involved.

The Federal Register document focuses on the financial aspects related to the employment of H-2A and H-2B foreign workers in the United States, specifically addressing updates to allowable monetary charges and reimbursements. These updates are crucial for both employers and foreign workers, impacting everyday expenses like meals and travel.

Allowable Meal Charges

The document outlines an update to the maximum allowable charge for meals employers can impose on H-2A workers. For 2025, this amount is adjusted to $16.28 per day, calculated by applying a 2.5% increase based on the Consumer Price Index for All Urban Consumers (CPI-U) for Food from December 2023 to December 2024. In 2024, this charge was $15.88 per day. This adjustment ensures that meal charges keep pace with inflation and reflect current food costs. Employers are not permitted to charge more than this maximum amount unless they receive special approval. This financial reference highlights an issue concerning the potential ambiguity if receipts are not provided, as the maximum allowable charge remains unspecified without them.

Reimbursement for Travel-Related Subsistence

Another focal point is the discussion on the reimbursement for travel-related subsistence, which encompasses costs incurred for meals, lodging, and other expenses when a worker is traveling to or from the workplace. Workers are entitled to reimbursement for these costs, with the maximum daily amount as per the Continental United States (CONUS) meals and incidental expenses rate set at $68.00 per day for 2025. If a worker travels for less than a full day, the meal expense reimbursement can be limited to 75% of the maximum, amounting to $51.00.

This reimbursement practice ensures that workers are compensated for necessities while traveling. However, the document highlights complexities in the reimbursement and advance payment processes. Understanding these financial terms and conditions could pose difficulties without proper simplification, which is important for ensuring compliance and fairness.

Financial Clarity and Accessibility

The financial references in the document, such as meal charges and subsistence rates, are tied to several identified issues. One issue is the heavy reliance on acronyms and external references, such as CPI-U and CONUS rates, which can be challenging for individuals unfamiliar with these terms. Additionally, referencing URLs for further guidance might not be the most reliable method due to potential accessibility changes over time.

Therefore, while the updates are essential for compliance and fairness, there is a clear need for simplifying the financial terms and providing comprehensive explanations to aid understanding for those not well-versed in legal or financial jargon. This would enhance accessibility and ensure that all parties involved can adequately meet their financial obligations and rights.