A major Georgia-based company recently settled out of federal court for a COVID-era program.
Delta Air Lines allegedly violated the False Claims Act in connection to the U.S. Treasury Department's Payroll Support Program, according to a Tuesday news release from the U.S. Justice Department. Here's what we know:
What is the Payroll Support Program?
The PSP was reportedly stabbed in March 2020 under the Coronavirus Aid, Relief and Economic Security Act to provide payroll support to passenger and cargo air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits.
What was Delta charged with?
Air carriers participating in the program were required to enter into written agreements with the treasury that imposed certain conditions in exchange for the receipt of PSP funds. Among other requirements were limitations on the amount of compensation that participants could pay to certain corporate officers and employees earning annual compensation in excess of $425,000.
From 2020 to 2023, Delta allegedly awarded some corporate officers and employees compensation exceeding the limits, and violated the False Claims Act by inaccurately certifying compliance with the requirements as well as not notifying the treasure of the breach.
How much was Delta Air Lines required to pay?
Delta agreed to pay $8.1 million to resolve the allegations. The justice department said this was a coordinated effort between multiple divisions of their agency, the...
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