In a significant wage-and-hour decision, the U.S. Court of Appeals for the Third Circuit rejected a key component of a $35.8 million judgment obtained by the U.S. Department of Labor (DOL), holding that the Fair Labor Standards Act (FLSA) does not permit recovery of so-called "overtime gap time."
The June 3, 2026 decision in DOL v. Comprehensive Healthcare Management Services LLC marks the first time the Third Circuit has addressed whether employees may recover compensation for non-overtime hours worked during a workweek in which overtime was also worked. The court answered that question with a clear "no," further deepening an existing split among the federal circuits.
“Overtime gap time” refers to unpaid straight-time hours worked in a week where an employee also works more than 40 hours. For example, if an employee works 43 hours in a week but is paid for only 38 hours, two of the five unpaid hours (that fall under 40 hours in the workweek) may constitute “gap time.” Unlike a traditional overtime claim, when an employee is seeking “gap time,” the employee is asking the court for payment for straight-time hours worked that occurred prior to the employee hitting 40 hours in a workweek.
The FLSA primarily...
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