Southwest Settles Paid Military Leave Suit for $18.5 Million

Southwest Airlines Co. signed an $18.5 million class settlement with employees who accused the airline of wrongly failing to provide paid leave for periods of military service.

The proposed deal would provide 2,791 class members with an average net value of more than $4,400, according to court papers filed Thursday in the US District Court for the Northern District of California. It represents between 26% and 74.2% of the case’s estimated damages, according to the filing.

The airline also pledged to begin providing servicemembers with up to 10 days of paid military leave per year beginning in 2026—a move the ...