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Thursday, June 4, 2026

WAGE-HOUR—OVERTIME—3d Cir.: Third Circuit holds FLSA does not contemplate pay for overtime gap time - VitalLaw.com

Overtime gap time claims are claims “by an employee who exceeds the overtime threshold” but does not receive pay for all non-overtime hours worked.

In a case in which a federal district court had awarded $35.8 million in damages on behalf of nearly 6,000 employees of Comprehensive Healthcare Management Services LLC, the Third Circuit held that the FLSA does not afford a remedy for overtime gap time. Aligning with Second Circuit precedent on the issue and diverging from that of the Fourth Circuit, the federal appeals court further found that the district court applied the proper burden of proof in the case to the Secretary of Labor’s claims and that its factual findings were not clearly erroneous. Finding the district court’s exemption analysis flawed, however, the Third Circuit reversed in part and remanded. Judge Roth dissented in part (Secretary of United States Department of Labor v. Comprehensive Healthcare Management Services, LLC, No. 24-2842 (3d Cir. June 3, 2026)).

Comprehensive. Comprehensive Healthcare Management Services LLC, according to the court, began acquiring healthcare facilities across Pennsylvania in 2014. By 2017, the company had amassed 15 residential nursing, rehabilitation, and assisted living facilities. The U.S. Department of Labor (DOL) began investigating Comprehensive for wage and hour violations around that time. In 2018, the Secretary of Labor filed suit against Comprehensive in federal district court in Pennsylvania, alleging that the...



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