DOL’s $35.8 Million Healthcare Wage Verdict Tossed on Appeal (1)

June 3, 2026, 2:10 PM UTCUpdated: June 3, 2026, 4:57 PM UTC

A district judge wrongly included “overtime” gap time when he awarded the US Labor Department more than $35.8 million for healthcare worker pay, the Third Circuit said in ruling on a matter of first impression.

Overtime gap time—pay for non-overtime hours worked during a period when the employee also worked overtime—isn’t something the Fair Labor Standards Act allows people to recover, the US Court of Appeals for the Third Circuit said Wednesday in a precedential opinion partially reversing the lower court’s ruling. The Pennsylvania federal court also conducted a flawed analysis of whether some workers were exempt from the FLSA’s ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.