A federal judge has set a hearing on allegations that the U.S. Department of Labor artificially inflates the wages of foreign guest farmworkers to make farmworker pay more attractive.

A lawsuit filed by the National Council of Agricultural Employers and several Florida farm groups claims the Biden administration adopted flawed methods in 2023 for calculating the adverse effect wage rate.

The rate, which varies by state, is the minimum wage for foreign farmworkers admitted temporarily into the U.S. on H-2A visas. The Labor Department sets rates to prevent the influx of foreign labor from lowering wages for U.S. workers.

U.S. District Judge Charlene Honeywell scheduled the hearing for July 1 in Tampa, Florida. The employers council and farm groups are seeking a nationwide injunction to roll back wages to 2023 rates.

The Trump Labor Department had asked for more time to review the lawsuit, which it inherited from the Biden administration. Honeywell ruled the case was due for a hearing. Both sides have moved for summary judgment.

National Council of Agricultural Employers CEO Michael Marsh said he was grateful the judge didn’t put off the hearing.

“America’s agricultural community is being forced to foot-the-bill for this illegal wage rate with each passing pay period,” Marsh said in a statement.

The Labor Department annually sets the minimum H-2A wage rate. California has the highest wage in the Lower 48 at $19.97 an hour. Washington and Oregon are tied for second at $19.82 an hour. The wage in Idaho is $16.83 an hour.

The Labor Department surveys farmworker wages to set rates, but also uses non-farmworker pay surveys to set wages for jobs such as truck driver or front-line supervisor.

Using those surveys inflate what farmworkers are actually paid, driving up the adverse effect wage rate, the lawsuit claims.

Farms are required to furnish housing to foreign workers. The lawsuit claims the Labor Department has read into the law a requirement that the housing be free.

The lawsuit argues housing should be considered part of the workers’ compensation in calculating the adverse effect wage rate.

In a response filed with the court, the Labor Department cited dictionary definitions equating “furnish” with supplying, providing or equipping.

Housing, as well as transportation into the country and visa-processing fees, should be considered business costs, the Labor Department argues.

“Factoring these expenses into the (adverse effect wage rate) would be akin to permitting an employer to deduct these business expenses from the workers’ wages,” the brief reads.

Besides setting the minimum H-2A wage to protect U.S. workers, the Labor Department certifies no U.S. workers are available for jobs filled by foreign workers.

So far this year, California and Washington farms have recruited the third- and fourth-most foreign farmworkers, respectively, among all states, according to the Labor Department. Florida, where the lawsuit was filed, leads all states in foreign farmworkers.