Cape Air Mostly Loses Bid to Toss Pilots’ Labor Lawsuit

Cape Air must face claims that its pilot training program violated minimum wage requirements and coerced their labor, a federal judge decided in mostly denying the airline’s motion to dismiss a lawsuit against it.

Twelve of its former pilots-in-training alleged in the US District Court for the District of Massachusetts that the Hyannis, Mass.-based airline violated of the Trafficking Victims Protection Act and Fair Labor Standards Act. Nine of those employees also claimed breaches of contract, good faith and fair dealing.

The airline asked the court to dismiss all claims, which it declined to do with the exception of one ...