Delta Air Lines has agreed to pay $8.1 million to settle allegations it violated pandemic aid rules by overpaying executives, according to a Department of Justice press release.
The Atlanta-based carrier allegedly breached compensation limits tied to federal payroll support received during the COVID-19 pandemic.
The settlement highlights ongoing scrutiny of companies that received billions in pandemic relief funds. It also underscores the government’s determination to enforce compliance with aid program conditions.
Delta entered into agreements with the Treasury in 2020 and 2021 for the Payroll Support Program (PSP). The program prohibited paying certain employees earning over $425,000 more than the allowed limits.
Between March 2020 and April 2023, Delta allegedly awarded excessive compensation to some corporate officers. The airline also reportedly filed false compliance reports and failed to notify the Treasury of the breach.
“The PSP was intended to provide critical assistance to the airline industry during the pandemic,” said Assistant Attorney General Brett A. Shumate. “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.”
The PSP was established under the Coronavirus Aid, Relief, and Economic Security (CARES Act) in March 2020, providing payroll support to airlines for maintaining employee wages and benefits during the crisis.
U.S. Attorney Theodore S. Hertzberg...
Delta Air Lines has agreed to pay $8.1 million to settle allegations it violated pandemic aid rules by overpaying executives, according to a Department of Justice press release. The Atlanta-based ...