Southwest Airlines to pay $18.5 million over employees' military leave

By Jonathan Stempel

Sept 26 (Reuters) - Southwest Airlines LUV.N agreed to pay $18.5 million to settle a class action accusing the carrier of failing to provide paid leave to employees who took short-term military leave.

A preliminary settlement was filed on Thursday night in San Francisco federal court, and requires a judge's approval.

Employees said Southwest wrongly denied pay when they took 14 days or fewer of military leave, despite paying for other absences including sick leave, bereavement leave and jury duty.

They said Southwest's actions violated the Uniformed Services Employment and Reemployment Rights Act, a federal law protecting military personnel in their civilian employment.

Approximately 2,791 eligible Southwest employees would receive an average $4,421, after legal fees of up to one-third of the settlement fund are deducted, court papers show.

Southwest would also provide up to 10 days of paid short-term military leave per calendar year from 2026 to 2030.

The Dallas-based carrier denied wrongdoing and believes military leave is not comparable to other forms of leave, but settled to avoid the risk and cost of litigation, court papers show.

Southwest had no immediate comment on Friday.

In 2019, another San Francisco judge approved a settlement worth up to $18.8 million for nearly 2,000 Southwest pilots also denied paid leave for short-term military service.

The case is Huntsman v Southwest Airlines Co, U.S. District Court, Northern District of California, No. 19-00083.