Southwest Airlines $18.5M Military Leave Settlement

Employees who worked for Southwest Airlines and took short-term military leave of 14 days or fewer between Oct. 10, 2004, and Jan. 1, 2026, may be eligible to claim a cash payment from an class action settlement.

Southwest Airlines Co. agreed to pay $18.5 million to resolve a class action lawsuit alleging it failed to provide paid leave to employees who took short-term military leave while providing pay for other comparable types of leave, such as jury duty, bereavement or sick leave.

Who are the class members?

Individuals are considered class members if:

• They are a current or former employee of Southwest Airlines.
• They took short-term military leave (defined as military leave lasting 14 days or fewer) from their employment with Southwest at any time between Oct. 10, 2004, and Jan. 1, 2026.
• They were subject to a collective bargaining agreement during their employment.

There are two main groups of class members:

• Employees whom Southwest has records of short-term military leave. These individuals generally do not need to file a claim and will automatically receive a payment if they do not opt out.
• Employees whom Southwest no longer has records of short-term military leave. These individuals must submit a claim form to verify their eligibility and receive a payment.

Who is excluded from the class?

The settlement excludes employees who were subject to the collective bargaining agreement between Southwest and Transport Workers Union Local 550, which covers meteorologists.

How much is the Southwest Airlines payout?

The total settlement fund is $18.5 million. The amount each class member receives depends on several factors, including the amount of short-term military leave they took, the wages they would have earned during those absences and the wages they received from military service during those periods.

The calculation process is as follows:

• The settlement administrator estimates the wages the class member would have earned from Southwest during each period of short-term military leave and subtracts the wages they earned from military service.
• It then divides this amount by the total calculated amount for all class members to determine the class member's share of the net settlement fund.
• The administrator multiplies the class member's share by the net settlement fund to determine their payment.
• The net settlement fund is the total settlement amount minus deductions for attorneys’ fees, litigation expenses, settlement administration costs and service awards for the two class representatives.

The settlement administrator will split payments 50% as wages (reported on a W-2 and subject to withholdings) and 50% as nonwage compensation (reported on a 1099 with no taxes withheld).

How to claim a settlement payment

Most class members do not need to take any action to receive a payment. If they are eligible and Southwest has records of their short-term military leave, they will automatically receive a payment unless they opt out.

However, if a class member received a claim form because Southwest does not have records of their short-term military leave for the period between Oct. 10, 2004, and Dec. 31, 2012, they must submit a claim to receive compensation. They can file a claim online or complete the claim form they received in their packet and mail it to the settlement administrator.

Settlement administrator's mailing address: ILYM Group Inc., P.O. Box 2031, Tustin, CA 92781

Class members who wish to receive their payment electronically can select this payment preference on the settlement website. Those who do not make a selection will receive a check mailed to their last known address.

Class members whose address has changed should update their contact information with the settlement administrator to ensure they receive payment.

What proof or documentation is necessary to submit a claim?

• Class members submitting an online claim form or payment preference must provide the ILYM ID from their settlement notice and last name.
• Those requesting a change of address must provide the case name and last four digits of their Social security number, as well as their contact information.

Payout options

• Direct deposit (if selected on the settlement website)
• Mailed check (default)

$18.5 million settlement fund breakdown

The $18,500,000 settlement fund covers:

• Settlement administration costs: $250,000 (estimated)
• Attorneys’ fees: Up to $6,166,666.67
• Attorneys’ expenses: Up to $750,000
• Service awards to class representatives: $25,000 each ($50,000 total)
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: April 28, 2026
• Opt-out deadline: April 28, 2026
• Final approval (fairness) hearing: May 14, 2026

When is the Southwest Airlines military leave settlement payout date?

The settlement administrator will distribute payments approximately two months after the court grants final approval of the settlement provided there are no appeals.

Why did this class action settlement happen?

The class action lawsuit alleged Southwest Airlines violated the Uniformed Services Employment and Reemployment Rights Act by not providing paid leave to employees who took short-term military leave while offering paid leave for other comparable absences, such as jury duty, bereavement or sick leave.

Southwest denied any wrongdoing and claimed military leave is not comparable to other forms of leave. Both sides agreed to settle to avoid the risks and costs of further litigation.

Sources

1. Class notice
2. Settlement agreement