Employee Benefits News examines legal developments that impact the employee benefits and executive compensation employers provide, including federal and state legislation, rules from federal...
July 22 — American Airlines Inc. will pay nearly $5 million in cash and company stock to settle claims that it shortchanged the pension benefits of pilots who served in the military ( Allman v. Am. Airlines Inc. Pilot Retirement Benefit Program Variable Income Plan , D. Mass., No. 1:14-cv-10138, motion for preliminary settlement approval filed 7/21/16 ).
The airline will pay $500,000 in cash and $4.45 million in company stock to compensate about 1,150 pilots for pension benefits they allegedly missed out on by serving in the military, according to court papers.
The lawsuit accused the airline of violating the Uniformed Services Employment and Reemployment Rights Act, which requires employers to maintain certain benefits and re-employment rights for workers who take leaves of absence to serve in the military.
United Airlines Inc. settled similar claims for $6.15 million in 2014.
In 2009, Continental Airlines Inc. was hit with a similar lawsuit by pilots seeking vacation, sick leave and welfare benefits. That lawsuit hit a dead end in 2014, when a federal appeals court found the dispute to be governed by the Railway Labor Act.
The American Airlines settlement papers were filed July 21 in the U.S. District Court for the District of Massachusetts. The settlement won't be finalized until it receives approval from a federal judge.
The American Airlines pilots are represented by Cohen Milstein Sellers & Toll PLLC, Crotty & Son Law Firm PLLC, Law Office of Thomas G. Jarrard LLC, Washington Lawyers' Committee for Civil Rights and Urban Affairs, Law Office of Robert W. Mitchell and Block & Leviton LLP.
Bello Welsh LLP and O'Melveny & Myers LLP represents the airline defendants.
To contact the reporter on this story: Jacklyn Wille in Washington at email@example.com
To contact the editor responsible for this story: Jo-el J. Meyer at firstname.lastname@example.org
Text of the motion for settlement approval is at http://www.bloomberglaw.com/public/document/Allman_v_American_Airlines_Inc_Pilot_Retirement_Benefit_Program_V/2.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)