Southwest Airlines has agreed to pay $18.5 million to settle a class action lawsuit accusing the carrier of failing to provide paid leave to employees who took short-term military leave. This preliminary settlement, filed in San Francisco federal court, requires a judge’s approval. Employees alleged that Southwest denied pay for military leave of 14 days or fewer, despite providing compensation for other absences such as sick leave and jury duty.

The settlement will benefit around 2,791 eligible employees, who will receive an average of $4,421 after legal fees are deducted. Additionally, Southwest will offer up to 10 days of paid short-term military leave per calendar year from 2026 to 2030. The Dallas-based carrier denied any wrongdoing but opted to settle to avoid the risk and cost of litigation. This case echoes a similar settlement in 2019, where nearly 2,000 Southwest pilots were compensated for the same issue.