The U.S. Court of Federal Claims ruled on June 1, 2026, that advanced practice registered nurses (APRNs) and physician assistants (PAs) employed by the Department of Veterans Affairs (VA) are not entitled to overtime pay for work that was not expressly authorized by the agency. This decision affects numerous healthcare workers within the VA system who claimed they were induced to work overtime without proper compensation.

The case, known as Allen v. United States, No. 22-400, centers on the interpretation of overtime pay regulations under 38 U.S.C. §§ 7453(e)(1) and 7454(a). The ruling clarifies the legal standards for when overtime work is considered "officially ordered or approved," a key factor in determining pay eligibility for VA employees.

The dispute began when the plaintiffs, a group of APRNs and PAs, argued that they were required to respond to urgent patient notifications, known as "View Alerts," outside of their regular working hours. They claimed the VA induced them to work overtime but failed to compensate them at the appropriate overtime rates. The nurses contended that the VA's failure to pay violated federal law.

The government countered that the plaintiffs did not have a right to overtime pay because their work was not "officially ordered or approved" as required by the VA's regulations. According to the VA's Handbook, overtime must be expressly authorized in advance, either verbally or in writing, or approved after the fact.

The case progressed through the legal system, ultimately being remanded from the United States Court of Appeals for the Federal Circuit. The appeals court's decision was influenced by the Supreme Court's ruling in Loper Bright Enterprises v. Raimondo, which altered the standard for judicial review of agency interpretations of statutes. This change led the Court of Federal Claims to reassess the case in light of the new legal framework.

The Ruling

Judge Elaine D. Kaplan of the U.S. Court of Federal Claims ruled in favor of the government, granting its motion for summary judgment. The court found that the plaintiffs were not entitled to overtime pay for work performed on or after August 3, 2017, because it was not authorized in accordance with the VA Handbook's requirements.

The court stated, "The overtime work Plaintiffs allege they were induced to perform was not authorized or approved in accordance with the requirements of the revised Handbook."

The ruling emphasized that the phrase "officially ordered or approved" requires a formal process for authorizing overtime work. The court noted that the VA's interpretation of this phrase was consistent with the Federal Circuit's earlier decision in Lesko v. United States, which also addressed the interpretation of overtime provisions under federal law.

Judge Kaplan highlighted that the VA's regulations specify that overtime must be approved in advance by an authorized official. The court concluded that since the plaintiffs' overtime work was neither verbally nor in writing authorized, they did not meet the requirements for receiving overtime compensation.

Impact

This ruling has significant implications for VA employees and their entitlement to overtime pay. It reinforces the necessity for clear and formal authorization processes for overtime work, potentially limiting the ability of employees to claim overtime for work they believe they were induced to perform.

The decision may also set a precedent for future cases involving overtime claims by federal employees, as it aligns with the Federal Circuit's interpretation of similar statutory language in other contexts. The ruling could discourage employees from working overtime unless they have explicit authorization, impacting staffing and patient care within the VA.

What's Next

The plaintiffs may consider appealing the decision to a higher court, but details were not available in the court filing regarding any potential appeal plans. The court has also directed the parties to file a joint status report by July 1, 2026, to discuss next steps regarding overtime claims based on work performed prior to the Handbook revisions.