Split 3rd Circuit Rejects DOL’s FLSA ‘Overtime Gap Time’ Damages In $35.8M Award

( June 18, 2026, 8:38 AM EDT) -- PHILADELPHIA — In a ruling on a question of first impression, a split Third Circuit U.S. Court of Appeals panel reversed a Pennsylvania federal judge’s award of “overtime gap time” pay to the U.S. Department of Labor (DOL) as part of a more than $35.8 million damages package in a wage and hour violations suit, holding that the Fair Labor Standards Act (FLSA) does not provide a cause of action for unpaid, non-overtime hours, even when the hours occurred in a week in which overtime was worked....