United Airlines $27.5M Retiree Class Action Settlement

Danielle Toth

Editor

Published

June 30, 2026 12:58 PM

Updated

June 30, 2026

Who are the class members?

According to the official settlement website, the class includes all former United Airlines employees who:

Retired between Aug. 17, 2017, and Dec. 31, 2020
Were not eligible for the Frontline Voluntary Separation Program 2, the Frontline Voluntary Separation Program 3 and/or the Frontline Voluntary Separation Leave Program solely because they retired before United offered these programs

The class includes all employees who meet the above criteria regardless of whether they signed a release of claims as a condition of accepting any of these programs.

The settlement divides the class into several groups based on the timing and nature of each member’s retirement and their eligibility for the various separation programs:

Group A: Employees who did not retire under any voluntary separation program, subdivided as:

A1: VSL eligible
A2: VSP2 eligible but not VSL eligible
A3: VSP3 eligible but not VSP2 or VSL eligible

Group B: Employees who retired under VSP2, subdivided as:

B1: VSL eligible

Group C: Employees who retired under VSP1, subdivided as:

C1: VSL eligible
C2: VSP2 eligible but not VSL eligible
C3: VSP3 eligible but not VSP2 or VSL eligible

The settlement administrator will determine each group’s eligibility and potential benefits by their employment and retirement status in relation to the timing and eligibility rules of the various separation programs.

How much can class members get?

The settlement provides a total cash fund of $27.5 million. The settlement administrator will deduct attorneys’ fees and expenses, service awards, taxes and administration costs from this amount and then distribute it among class members according to a court-approved plan of allocation, which is based on each member’s maximum potential damages compared to the total damages for all class members.

Group A1 (VSL eligible): Damages equal to the monetary incentive under VSL
Group A2 (VSP2 eligible but not VSL eligible): Damages equal to the monetary incentive under VSP2(b)
Group A3 (VSP3 eligible but not VSP2 or VSL eligible): Damages equal to the monetary incentive under VSP3
Group B1 (retired under VSP2 and VSL eligible): Damages equal to the difference between the monetary incentive under VSL and VSP2(b) but reduced by 20%
Group C1 (retired under VSP1 and VSL eligible): Damages equal to the monetary incentive under VSL but reduced by 20%
Group C2 (retired under VSP1 and VSP2 eligible but not VSL eligible): Damages equal to the monetary incentive under VSP2(b) but reduced by 20%
Group C3 (retired under VSP1 and VSP3 eligible but not VSP2 or VSL eligible): Damages equal to the monetary incentive under VSP3 but reduced by 20%

The 20% reduction for Groups B and C reflects that these members signed releases when accepting benefits under VSP1 or VSP2, and United contends those releases bar further claims.

Additional travel benefit:

Each class member will also receive eight vacation passes for United-operated flights, which are valid for five years. These passes waive service charges and taxes (except certain airport and regulatory taxes) and provide the highest space-available boarding priority for the retiree and eligible pass riders.

No action needed to receive payment

Class members do not need to file a claim to receive compensation. There is no online claim form or PDF claim form to submit. The settlement administrator will use United’s records to identify eligible class members and automatically send their payments to the address on file.

If a class member needs to update their address, they should contact the settlement administrator at 888-808-7073 or Info@HoffmanSettlement.com.

$27.5 million settlement fund breakdown

The $27,500,000 settlement fund will cover:

Settlement administration costs: To be determined
Attorneys’ fees: Up to $9,166,667
Attorneys’ expenses: To be determined
Service awards to class representatives: Up to $10,000 per representative ($120,000 total)
Payments to approved class members: Remainder of the fund

Important dates

Fairness hearing: Sept. 1, 2026

When is the Hoffman v. United Airlines payout date?

The settlement administrator will issue payments to class members after the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged United Airlines failed to provide promised cash severance benefits to employees who retired before it offered certain voluntary separation programs. The plaintiffs claimed United’s 2017 announcement guaranteed such benefits if the airline introduced new programs within three years of retirement.

United denied liability but agreed to settle to avoid the costs, risks and delays of continued litigation.