On June 3, 2026, in Secretary of Labor v. Comprehensive Healthcare Management Services, LLC, the U.S. Court of Appeals for the Third Circuit held that the Fair Labor Standards Act (FLSA) does not provide a cause of action for “overtime gap time” — compensation for non-overtime hours worked in a pay period when the employee has worked overtime. This decision extends prior Third Circuit law rejecting pure gap time claims under the FLSA and deepens a circuit split about the viability of overtime gap time claims under the FLSA. Employers with nationwide operations now have additional guidance on gap time claims under the FLSA but need to be aware of conflicting FLSA precedent and overlapping state law requirements to ensure wage and hour compliance.
Massachusetts Trial Court Holds Quarterly Bonuses May Be ‘Wages’ Under Wage Act
On January 22, 2026, in Pres v. Sensys Gatso USA, Inc., a Massachusetts trial court ruled that the Massachusetts Wage Act (the Wage Act) encompasses quarterly bonuses not conditioned on defined contingencies. This decision highlights the importance of Massachusetts employers identifying and addressing explicit conditions or contingencies in employee bonus agreements. The draconian ramifications of failing to abide by the Wage Act include unpaid wages, mandatory treble damages, and attorneys’ fees.
Philadelphia’s Expanded and Amended ‘Ban-the-Box’ Law Takes Effect
Philadelphia employers should review their criminal background investigation practices and procedures in light of recent amendments to Philadelphia’s Fair Criminal Record Screening Standards Ordinance (FCRSS) that took effect on January 6, 2026, after being signed into law on October 8, 2025.
Massachusetts: Finally, Some Meat on the Bones of Its Noncompete Law?
Last month, in Hailey Boyd et al. v. The Boston Beer Co., Inc., D. Mass. 1:25-cv-13618, two former brewery representatives of the Boston Beer Company (Boston Beer) initiated a putative class action for alleged violations of the Massachusetts Noncompetition Agreement Act (MNAA or the Act). The plaintiffs contend that Boston Beer’s noncompete agreements violate the Act’s requirement that noncompetes be supported by “garden leave” payments or other “mutually agreed consideration.” The case may finally provide guidance as to what “or other mutually agreed consideration” suffices to enforce a noncompete agreement in Massachusetts.
Massachusetts Supreme Judicial Court Holds That Retention Bonuses Are Not ‘Wages’ Under the Massachusetts Wage Act
On October 22, in Nunez v. Syncsort Inc., the Massachusetts Supreme Judicial Court ( SJC) held that retention bonuses are not “wages” under the Massachusetts Wage Act. 496 Mass. 706 (2025). The Nunez decision continues the trend of Massachusetts courts concluding that conditional or contingent compensation falls outside the scope of the Wage Act.
Federal Court Strikes Down DOL’s 2024 Rule on Overtime Exemptions Nationwide
Last Friday, a Texas federal court struck down the U.S. Department of Labor’s (DOL) 2024 rule raising the minimum salary levels for certain exemptions to the overtime requirements of the Federal Labor Standards Act (FLSA). The decision by Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas to vacate the 2024 rule applies nationwide to all employers and comes weeks before another increase to the salary levels was set to take effect.
Pennsylvania Limits Noncompete Agreements for Health Care Practitioners
On July 17, Pennsylvania Governor Josh Shapiro signed House Bill (HB) 1633, the Fair Contracting for Health Care Practitioners Act (the Act) into law. At a high level, the Act: (1) limits the enforceability of noncompetes against certain health care practitioners; and (2) imposes a notice obligation on employers of those practitioners.
What Can Up In The Air Teach Us About the “Best” Way to Terminate an Employee?
What steps should an employer take to terminate an employee properly? What is the best way to communicate the termination decision? In Episode 6 of the Hiring to Firing Podcast, Troutman Pepper Partner Tracey Diamond and Associate Brian Ellixson sit down with Barry Thrutchley, vice president of human resources at Puratos Corporation, to discuss the movie Up In The Air and best practices in conducting terminations. Tune in to hear a lively discussion about the “right” way to deliver bad news.