Delta settles $8.1 million pandemic payroll case
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.”
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt