Delta Air Lines has settled a DOJ lawsuit accusing it of overpaying executives during the pandemic.
The airline agreed to pay $8.1 million but hasn’t admitted libility.
The allegations are that it violated the False Claims Act by exceeding executive compensation limits under the rules of the federal Payroll Support Program (PSP) during the pandemic.
The PSP was part of the CARES Act, to support employee wages and financial assistance for airlines.
The action accused Delta of exceeding the cap on compensation for executive and some other employees.
It related to employees earning more than $425,000 annually.
Between March 2020 and April 2023 it exceeded those caps and covered it up in quarterly reports submitted to the US Treasury, the Justice Department said.
DOJ prosecutors alleged Delta failed to notify the Treasury Department when the overpaying was discovered.
“The PSP was intended to provide critical assistance to the airline industry during the pandemic. The department is committed to holding accountable those who failed to abide by the terms and conditions governing their receipt and use of federal funds,” said Assistant Attorney General Brett A. Shumate of the Civil Division
The airline responded: “Delta strongly believes it fully complied with all requirements of the CARES Act. At issue is a disagreement about a technical matter involving the time periods used to measure executive compensation during the pandemic.”
