Southwest Airlines Sued by City of Oakland for Allegedly Withholding Paid Time Off

Southwest Airlines is facing a lawsuit from the city of Oakland for allegedly violating California’s paid time off policy.

Chron is reporting that the Texas-based airline was sued in the Alameda County Superior Court earlier this month. Oakland, California, is accusing Southwest Airlines of continuing to deny its workers’ entitlement to paid sick leave. The airline is already facing legal action from the city for improperly denying paid time off to staff members who become ill or need to take care of a sick family member.

The lawsuit specifically charges the airline with discriminating against its employees who attempt to exercise their entitlement to sick leave and with not allowing them to take sick leave.

One of the alleged violations by Southwest Airlines involved a worker who called in sick to tend to his son’s high fever. The worker had around 10.5 hours of “Protected Sick Leave,” which is time off granted to certain workers by Southwest to comply with Californian municipal and state regulations. It is not to be confused with “Company Hours,” which are stipulated in most employees’ collective bargaining agreements.

With only six hours available, the employee did not have an equivalent amount of Company Hours, therefore Southwest refused to allow him to use Protected Sick Leave toward the absence. Following that absence, the employee received a disciplinary attendance point (a component of Southwest’s “strike system”), putting him 1.5 points shy of being fired overall.

Oakland is now requesting reimbursement for sick leave that was unjustly denied, fines to the city of up to $2,500 for each infraction, and a court order compelling the airline to alter its procedures.

Southwest Airlines’ Latest Drama

This lawsuit is just the latest bit of drama faced by the discount airline.

Just a few days ago, the company announced the next stage of its extensive board refreshment plan, a substantial upgrade to the board structure, in a letter from the executive chairman of the board of directors.

In November 2024, six existing board members — including Senator Roy Blunt, Veronica Biggins, and David Biegler — will retire. Gary Kelly, the executive chairman, will also retire following the 2025 Annual Meeting.

In response to comments from shareholders and after further discussion with Elliott Investment Management, the board plans to appoint four new independent directors. To enhance oversight of financial and strategic matters, it will also dissolve the Executive Committee and establish a new Finance Committee.