Third Circuit Rules FLSA Gap Time Not Overtime-Compensable
In-house counsel overseeing wage and hour compliance for Third Circuit employers must track this ruling, which eliminates potential FLSA liability for de minimis gap time between work shifts.
The U.S. Court of Appeals for the Third Circuit issued a precedential ruling holding that short, de minimis gaps of time between an employee’s scheduled work shifts do not qualify as compensable hours under the Fair Labor Standards Act (FLSA), and thus cannot be counted toward the 40-hour weekly threshold for overtime eligibility. The decision resolves a prior split in lower court interpretations of FLSA gap time rules for shift workers. In-house counsel for employers operating in the Third Circuit should update wage and hour policies to align with the ruling, and review past gap time pay practices to identify any eligible overpayment recoveries.