Southwest Airlines Settles $18.5M Military Leave Lawsuit

DALLAS— Southwest Airlines (WN) has agreed to pay $18.5 million to settle a long-running lawsuit related to paid military leave. The settlement covers pilots and crew members who claimed they were treated unfairly when taking short-term military leave.

The case centered on allegations that the airline failed to provide the same paid leave benefits for employees serving in the U.S. Armed Forces as it did for workers on comparable forms of leave.

Southwest Settles Military Lawsuit

The lawsuit alleged that Southwest Airlines violated the Uniformed Services Employment and Reemployment Rights Act (USERRA). This federal law requires employers to provide equal treatment to employees who must leave work to serve in the military.

Pilots and other employees argued that while the airline offered paid leave for jury duty or sick days, it did not extend similar benefits for military service.

This discrepancy, they claimed, created an imbalance that unfairly penalized those fulfilling military obligations.

Photo: Jeffrey S.S | Pexels

Settlement Terms and Court Approval

The settlement requires Southwest Airlines to pay $18.5 million into a fund for affected employees. Once approved by the federal court, the payments will be distributed to eligible staff who took short-term military leave.

The court will also oversee compliance to ensure that the airline aligns its leave policies with federal requirements. According to Simple Flying,

Each claimant will receive roughly $4,421 after legal fees are deducted from the settlement, and the carrier will also provide up to 10 days of paid short-term military leave from 2026 to 2030.

Legal representatives for the employees said the settlement provides long-awaited recognition of the sacrifices made by service members within the airline’s workforce.

Photo: JFK Spotting

Broader Implications for Airlines

Other major U.S. airlines, such as American Airlines and Delta Air Lines, are also facing USERRA lawsuits, while Alaska has settled a similar lawsuit in recent years.

By settling, Southwest Airlines (WN) avoids a potentially lengthy trial while addressing a critical compliance issue that could have wider consequences for aviation employment practices.

The $18.5 million settlement will be allocated among 2,791 current and former Southwest employees who served in the military and claim they faced disadvantages in pay, benefits, or career advancement compared to their civilian counterparts.

Photo: Aero Icarus | Flickr

Bottom Line

For affected employees, the settlement provides not only financial compensation but also policy changes moving forward.

Many pilots and crew members have expressed that the recognition of their rights under USERRA is as significant as the payout itself.

The resolution reinforces the importance of aligning airline policies with federal law and honoring commitments to employees who serve in the military.

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The post Southwest Airlines Settles $18.5M Military Leave Lawsuit appeared first on Aviation A2Z.