Delta Air Lines (DL, Atlanta Hartsfield Jackson) has agreed to pay USD8.1 million to resolve allegations that it awarded compensation to C-level executives and employees that exceeded limits the carrier had agreed to as part of its participation in the Department of the Treasury’s Payroll Support Program (PSP) during the COVID-19 pandemic.
The settlement resolved allegations that between March 2020 and April 2023, Delta awarded compensation to some corporate officers and employees exceeding the limits set in the agreement and allegedly violated the False Claims Act by inaccurately certifying compliance with PSP requirements in quarterly reports submitted to Treasury and not notifying the Treasury of the breach once it was discovered, the department announced in a press release.
In a statement sent to ch-aviation, Delta said it strongly believed it fully complied with all requirements of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
“At issue is a disagreement about a technical matter involving the time periods used to measure executive compensation during the pandemic. Delta has consistently maintained the claim is without merit and settled to avoid the expense and distraction of litigation,” it explained.
