ATLANTA- Delta Air Lines (DL) has agreed to pay $8.1 million to settle allegations it violated the False Claims Act related to its participation in the Payroll Support Program (PSP), administered by the U.S. Department of the Treasury.
The alleged violations occurred while Delta operated from its main hub at Hartsfield–Jackson Atlanta International Airport (ATL), where it submitted compliance reports under the PSP, a pandemic relief program designed to support aviation industry payrolls.
Delta Air Lines Inc. (DL) entered into Payroll Support Program agreements in 2020 and 2021, agreeing to federal compensation restrictions in exchange for COVID-19 relief funds.
The PSP was a key provision under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing billions in financial aid to support airline workers during the pandemic.
The program, run by the U.S. Department of the Treasury, required recipient airlines to cap compensation for certain employees, particularly those earning over $425,000 per year.
Between March 2020 and April 2023, Delta allegedly breached these limits by awarding excess compensation to some executives and employees.
Additionally, Delta is accused of falsely certifying compliance in its quarterly reports and failing to alert the Treasury once it discovered the breach.
These actions allegedly violated the False Claims Act, which prohibits knowingly submitting false information to obtain federal funds....
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