Delta Paying $8.1M to Settle False Claims Act Violations Related to Payroll

Delta Air Lines Inc. agreed to pay $8,100,000 to resolve allegations it violated the False Claims Act by awarding compensation to corporate officers and employees that exceeded the compensation limits agreed to as part of its participation in the Department of the Treasury’s Payroll Support Program, according to the U.S. Department of Justice.

The PSP was established by Congress in 2020 under the Coronavirus Aid, Relief and Economic Security Act to provide payroll support to passenger and cargo air for employee wages, salaries and benefits. Participating air carriers were required to enter into written agreements with the Department of Treasury. Among other program requirements, PSP agreements included limitations on compensation that PSP participants could pay to certain corporate officers and employees earning annual compensation over $425,000, according to the DOJ.

The settlement resolves allegations that between March 2020 and April 2023, Delta awarded compensation to some corporate officers and employees that exceeded the limits set by the PSP agreements. Delta allegedly violated the False Claims Act by inaccurately certifying compliance with PSP requirements in quarterly reports to Treasury, as well as by not notifying Treasury of the breach once it was discovered by Delta.

The settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by H. Remidez LLC. Under those provisions, a private party can file an action on behalf of the goverbnment and receive a portion of any recovery. The qui tam case is captioned United States ex rel. H Remidez LLC v. Delta Air Lines Inc. The whistleblower will receive $850,500 in connection with the settlement.

The claims resolved by the settlement are allegations, and there has been no determination of liability.