"Justin and Jessica are focused on mending any issues in their relationship right now, but Jessica is still in a place where she's very hurt and upset with Justin," a source told Us Weekly. "She hasn't fully forgiven him and isn't letting him off easy."
The couple reportedly know that there's "work required" to "get back to a good place as a couple" after the former NSYNC member was photographed holding hands with Wainwright last month. The two were sitting together on an outdoor balcony at New Orleans' Old Absinthe House. The photos published by The Sun showed them holding hands under a table as well as Wainwright resting her hand on Timberlake's leg.
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Following the highly publicized PDA session, Timberlake publicly apologized to Biel, to whom he's been married since 2012, for his behavior, writing in a statement he shared on Instagram that he "displayed a strong lapse of judgment."
"But let me be clear — nothing happened between me and my costar," the 38-year-old insisted. "I drank way too much that night and I regret my behavior. I should have known better. This is not the example I want to set for my son."
"I apologize to my amazing wife and family for putting them through such an embarrassing situations, and I am focused on being the best husband and father I can be. This was not that," he continued.
Biel, 37, had reportedly "encouraged" Timberlake to issue the Instagram statement, a source told Us Weekly earlier the month, wanting him to "take accountability" for his actions.
Although a representative for Wainwright denied any "validity" to the "speculation" surrounding her and Timberlake immediately after the photos surfaced, Wainwright herself has not publicly commented on the controversy. However, her father, Jeff Wainwright, spoke out in defense of her.
"She is in New Orleans doing some work, that is all. They are working on a movie together," he told the Daily Mail in November. "I did not make anything of it, really. I am a music producer, so I am used to all the hoopla. This is the business we are in. This is how it goes."
Filming on Palmer has reportedly wrapped, and Timberlake is planning on spending the holidays with Biel and their 4-year-old son Silas.
"Justin has spent a lot of time apologizing and acknowledging Jessica's feelings," a source told E! News. "He feels terrible and wishes he could take back the public humiliation and embarrassment he caused. He loves Jessica and being married to her. He will learn from what happened and not let it happen again."