Third Circuit Says FLSA Does Not Reach “Overtime Gap Time” Claims

June 15, 2026

 

What's New

The Third Circuit held in Secretary of Labor v. Comprehensive Healthcare Management Services LLC, that the Fair Labor Standards Act (FLSA) does not remedy unpaid straight-time hours worked in an overtime week, sometimes called “overtime gap time.”

“Overtime gap time” refers to unpaid straight-time hours in a week with overtime—for example, where an employee works 43 hours but is paid for only 38 straight-time hours and 3 overtime hours, leaving 2 hours unpaid.

The court emphasized that the FLSA guarantees minimum wage and overtime, not payment for every unpaid non-overtime hour, so employees must pursue those claims, if at all, under state law or contract theories.

What It Means

The ruling underscores an important limit on the FLSA: working overtime does not necessarily create a federal claim for every unpaid hour in that week.

For employers that already pay nonexempt employees for all hours worked, the compliance impact may be limited. Even so, the decision could still matter in wage-and-hour litigation by narrowing available FLSA remedies, especially in collective actions.

Because the Fourth Circuit has taken a different view, the issue may draw further appellate scrutiny, including possible Supreme Court review. In jurisdictions that follow the Third Circuit’s approach, plaintiffs may increasingly add state wage payment claims.

What You Should Do

Employers should review timekeeping, payroll coding, and manager practices to ensure that all hours worked are recorded and paid, including work outside scheduled hours.

For a broader review of wage and hour compliance fundamentals, consider our online course Fundamentals of Wage and Hour Compliance.





RELATED CONTENT


Subscribe to CWC's Updates and Events

CLICK TO SIGN UP




See more

Resources

Our library of sources helping you understand and manage your workplace requirements and risks.

Data Center

Metrics and dashboards guiding you to make statistics and research-driven decisions.

Events

Learn and network at events focused on compliance policy, practice, and strategy.

Diversance Connect

Helping members find and connect with thousands of outreach and recruitment sources.




© 2026 Center for Workplace Compliance (CWC), Washington, DC 20005. All rights reserved

Terms of Service      Privacy Policy      Cookie Policy      Antitrust Policy