$18.5M USERRA Settlement Sets Paid Military Leave Benchmark

The recent $18.5 million settlement in Huntsman v. Southwest Airlines Co. marks the largest recovery ever secured under the Uniformed Services Employment and Reemployment Rights Act (USERRA). The case centers on Southwest’s treatment of short-term, unpaid military leave.

According to a Womble Bond Dickinson alert, the settlement provides monetary compensation to approximately 2,791 employees and also commits Southwest to offering up to 10 days of paid short-term military leave annually from 2026 through 2030.

The settlement signals a growing judicial expectation that employers treat military leave comparably to civilian short-term paid absences. It serves as a practical benchmark for human resources and corporate compliance teams across industries.

USERRA, enacted to protect employees who serve in the uniformed services, mandates re-employment to the same or comparable positions with equivalent status, seniority, pay, and benefits. It applies to virtually all employers and prohibits discrimination or retaliation based on military service.

Employees must generally apply for reinstatement within 90 days for absences under 180 days. While USERRA does not create an inherent right to paid military leave, federal courts now consistently require that paid military leave mirror other paid short-term absences when comparable in duration, purpose, and employee control over timing.

The frequency of leave usage is not determinative. Courts in the Third, Seventh, and Ninth Circuits have reinforced this comparability standard, exposing employers across multiple sectors to class action litigation if disparities exist.

HR teams must ensure consistent procedures and benefits, mitigate retaliation risk, and track evolving litigation trends. Employers should inventory all paid short-term leave categories, document comparability analyses, and implement paid military leave policies aligned with civilian comparisons. The alert notes that implementing equal pay for leaves should provide substantial recruitment, retention, and employee morale benefits.