Southwest Airlines announced on September 26, 2025 that it will pay $18.5 million to settle a class‑action lawsuit brought by employees who took short‑term military leave. The settlement resolves allegations that the carrier failed to provide the required paid leave to these workers.
The lawsuit, filed by a group of Southwest employees, claimed that the airline’s policies did not comply with federal military leave regulations. By agreeing to the payment, Southwest avoids a prolonged litigation process and potential additional penalties.
While $18.5 million is a modest expense relative to Southwest’s annual revenue, the settlement underscores the company’s need to review and strengthen its leave‑policy compliance to prevent future legal exposure.
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