Key Takeaways:

The Third Circuit held that the FLSA does not provide a cause of action for overtime gap time claims.
Despite the ruling, employers may still face liability under state wage payment laws for unpaid straight-time wages.

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.
Understanding Overtime Gap Time
“Overtime gap time” refers to unpaid straight-time… Read the complete article here...
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