Southwest Airlines Fined $2.3 Million in Arizona over Sick Leave Dispute

DALLAS- Southwest Airlines (WN) is at the center of a major labor dispute after an administrative law judge upheld more than $2.3 million in fines tied to employee retaliation claims.

The ruling stems from cases involving workers in Phoenix Sky Harbor International Airport (PHX) who say they faced discipline for using paid sick time.

The Arizona Labor Department determined that the airline violated state law by issuing warnings to employees who used accrued leave. The decision, affecting at least 18 workers, underscores a clash between company policies and state labor protections.

Photo: Southwest Airlines

Southwest Airlines Fined $2.3 Million

The conflict began when aircraft mechanics alleged retaliation for taking earned sick leave.

Reported by ABC15, employees said they received formal warnings in their personnel files after their 10th sick day within a 12 month span, despite company policy allowing them to bank thousands of hours of sick time.

Attorney Lee Seham, who represents several mechanics, emphasized that the nature of their work demands reliability, but employees only call out when truly ill. He noted that sudden policy enforcement unfairly punished long-serving staff.

Southwest Airlines has argued that the judge’s ruling punishes the company for offering a more generous sick leave policy than required by Arizona law.

In a statement, the airline said the decision could force it to reduce flexibility in leave benefits for employees.

The company also claimed the fines, which exceed $2 million, violate due process, particularly since no workers lost wages or employment.

Southwest has confirmed plans to appeal the ruling, citing federal labor laws that it believes preempt Arizona’s labor regulations.

Photo: Aero Icarus | Flickr

State Law and Union Testimony

Arizona’s Fair Wages and Healthy Families Act, passed in 2016, requires employers to provide paid sick leave and prohibits retaliation for its use. State officials concluded that Southwest’s actions fell in direct violation of this law.

The Aircraft Mechanics Fraternal Association testified that disciplinary warnings began around November 2022, marking a sharp departure from prior practices.

The union argued that counting legitimate illness absences toward disciplinary thresholds undermined employee rights.

Photo: Tim | Flickr

Ongoing Impact

According to legal representatives, the fines are growing at a rate of roughly $18,000 per week as the case remains unresolved. More employees have since filed complaints, expanding the scope of the dispute.

Attorney Seham called the matter both legal and moral, stressing that workers earned their sick leave through years of service and deserve to use it without penalty.

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