In a recently filed settlement, Southwest Airlines has agreed to pay $18.5 million to resolve a class-action lawsuit alleging the airline unlawfully denied paid leave to employees who took short-term military leave.
Under the proposed agreement, about 2,791 eligible Southwest employees would each receive an average of $4,421. The settlement still requires approval by a federal court judge in San Francisco.
The airline faced a similar dispute in 2019 involving pilots, which settled for $18.8 million over comparable claims.
What did Southwest Agree to in the 2025 Settlement?
As part of the deal, Southwest will also adopt a new paid short-term military leave policy: up to 10 days per calendar year from 2026 through 2030. Southwest denies that it acted improperly. In its defense, the corporation argued that military leave is not equivalent to other types of leave, such as sick or jury duty leave.
The Uniformed Services Employment and Reemployment Rights Act (USERRA)
The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) governs how employers handle military leave. USERRA is a federal law that protects the civilian employment rights of service members when they serve in the uniformed services.
Key provisions include the following:
- Reemployment: Service members who step away from their civilian jobs to serve have the right to return afterward, with the same status, seniority, pay, and benefits they would have earned if they’d never left.
“Escalator” position: When service members come back, they’re entitled to the job they would have moved into if they’d stayed, not just the job they left.
- Non-discrimination and non-retaliation: Employers can’t discriminate against or punish someone because of their military obligations.
- Health and pension benefits: USERRA requires certain benefits, like health coverage, to continue while the employee is on military leave.
USERRA in The Southwest Case
In this Southwest case, the plaintiffs alleged that the airline violated USERRA by denying paid leave for military leave of 14 days or fewer, while providing paid leave for other comparable absences. Plaintiffs claimed that by excluding short-term military leave from paid leave, Southwest effectively discriminated against service obligations, undermining USERRA’s mandate that military service not be disadvantaged relative to other forms of employment absences.
Is paid leave strictly required under USERRA?
USERRA doesn’t require employers to pay for military leave. What it does guarantee are reemployment rights and protection from discrimination. The issue comes up when an employer’s own policies treat military leave differently from other types of short-term leave.
In the Southwest cases, the plaintiffs’ argument hinges on demonstrating that military leave is comparable in burden or nature to other types of leave. For example, if an employer routinely pays for short non-military leave such as jury duty or bereavement, denying pay for brief military leave can be perceived as unequal treatment.
How a Lawyer Can Help in These Situations
When disputes like this arise, a skilled wage theft attorney can provide critical value in several ways:
- Assess the viability and strength of claims.
- Evaluate damages and class certification.
- Negotiate proactively or represent in litigation.
- Audit practices.
- Protect clients against risk and manage litigation costs.
- Negotiate the allocation of fees, class notice procedures and dispute resolution mechanisms.
- Post-settlement compliance and enforcement.
If a court approves a settlement that requires changes (such as Southwest’s 10-day paid leave), a lawyer can monitor compliance, handle disputes about implementation and enforce or defend the settlement terms.
We Offer Free Consultations
Resolving military leave disputes is rarely straightforward. The interplay between policy, past practices, statutory mandates and litigation risk demands knowledgeable experience from a team with the resources to advocate for you and your coworkers.
If you’re an employee considering a USERRA claim, an attorney from The Carlson Law Firm can guide you through the tradeoffs, anchor your strategy in precedent and help you avoid costly missteps.
Consultations are free, and you pay nothing unless we successfully resolve your case. Schedule a free case evaluation at 833-4-CARLSON.
