Secretary United States Department of Labor v. Comprehensive Healthcare Management Services LLC

Circuit 3Jun 3, 2026

Split Score

SplitScore: 61/100

Case Summary

Disposition

Reversed in Part

The Third Circuit held that the Fair Labor Standards Act does not provide a cause of action for employees seeking unpaid straight-time wages worked during weeks in which they also worked overtime ("overtime gap time"). Accordingly, it reversed the district court’s inclusion of those damages. The panel otherwise affirmed most liability findings but vacated and remanded the exemption analysis for certain employees.

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Circuit Split Identified

Legal Issue

Whether the Fair Labor Standards Act (FLSA) permits employees to recover damages for "overtime gap time"—i.e., unpaid straight-time hours worked during weeks in which the employee also worked more than forty hours.

Circuit Positions

Circuit 2Circuit 3(this circuit)

FLSA does NOT recognize overtime gap time claims; recovery is limited to minimum wage and overtime premiums.

Circuit 4

FLSA DOES recognize overtime gap time claims based on DOL interpretive guidance and the statute's remedial purpose.

Conflict Summary

The Second and Third Circuits hold that the FLSA provides remedies only for minimum-wage and overtime violations and therefore does not allow recovery for unpaid straight-time hours in an overtime week (overtime gap time). The Fourth Circuit defers to Department of Labor guidance and permits such claims, reasoning that failure to pay straight time for all forty hours undermines correct overtime calculations.

Parties & Counsel

Parties

Appellant:Comprehensive Healthcare Management Services LLC et al.
Appellee:Secretary of the United States Department of Labor

Legal Counsel

Appellant:Jackson Lewis P.C. (Laura Bunting-Williams; Jeffrey A. Schwartz)
Appellee:U.S. Department of Labor, Office of the Solicitor (Dean Romhilt)