Alerts Sign-up
Southwest Airlines has agreed to pay $18.5 million to settle a federal lawsuit brought by employees who alleged the company failed to provide adequate military leave benefits. The settlement, reached on September 25, will be distributed among 2,791 current and former employees who were called to military service and claimed they received less favorable treatment compared to civilian peers.
The lawsuit, originally filed in 2019 in the Northern District of California, accused Southwest of violating the Uniformed Services Employment and Reemployment Rights Act (USERRA). Plaintiffs said that while the airline compensated employees for other types of short-term leave—such as illness, bereavement, or jury duty—it did not do so for military leave periods of 14 days or fewer.
A class-action status was granted in 2021. An initial settlement agreement covering pilots was reached in February 2025; this latest agreement extends coverage to non-pilot employees. Under its terms, eligible claimants will receive an estimated $4,421 each after legal fees are deducted from the fund. In addition to financial compensation, Southwest will provide up to ten days of paid short-term military leave annually from 2026 through 2030.
