The AEWR was created under the bracero program as a necessary protection against wage depression. The Department of Labor (DOL) issues an AEWR for each state based on U.S. Department of Agriculture (USDA) data.

The AEWR has often been criticized by farmworker advocates as being too low. Farmworker Justice explains why:

"First, the USDA survey that DOL uses for the AEWR measures the average wage rates. Employers that have a hard time finding U.S. workers should compete against other employers by offering more than the average wage to attract and retain workers. Second, the AEWR is based on the previous year's wage rates and does not reflect inflation. Third, the USDA surveys of the average wage include the 55% or more of farmworkers who are undocumented, so the wages are depressed compared to what they would be if only U.S. citizens and authorized immigrants had the job. In addition, the AEWR's, by themselves, also do not prevent employers from imposing very high productivity standards that desperate foreign workers will accept but that would cause U.S. workers to insist on higher wages."

As a practical matter, the substantive wage rates set forth in the H-2 visa programs are illusory and unenforceable.

H-2B workers often face an even worse situation with regard to wages than H-2A workers. Under the law, they are entitled only to the "prevailing wage" for their work; there is no adverse effect wage rate for those workers. Of course, even though these workers are entitled to payment of prevailing wages and to employment in conformity with required minimum terms and conditions as provided for in the employer's labor certifications, federal law provides no real remedy when these rights have been violated.

In the forestry industry, prevailing wages in recent years have actually fallen, not only adjusted for inflation but in real terms. For example, in 2005 the prevailing wage rate for tree planters in all counties of Alabama was $9.20 per hour; in 2006, the wage rate was only $7.29 in Dale County, Alabama; other counties had similar decreases. There are two explanations for this trend. First, the DOL has recently modified its methodology for determining the prevailing wage in a way that is extremely favorable for employers.

Second, when an industry relies on guestworkers for the bulk of its workforce, wages tend to fall. Guestworkers are absolutely unable to bargain for better wages and working conditions. Over time, wages fall and the jobs become increasingly undesirable to U.S. workers, creating even more of a demand for guestworkers.