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 emphasized companies’ duty when accepting federal assistance.
“When companies accept federal assistance, especially generous pandemic-relief funds like those at issue here, they owe a duty to the American people to respect the conditions placed on those funds,” Hertzberg said in a Department of Justice press release.
A whistleblower brought the case under the False Claims Act. H. Remidez LLC will receive $850,500 from the settlement for exposing the alleged violations.
Treasury Deputy Inspector General Loren Sciurba noted the investigators’ roles in safeguarding program integrity.
“Our criminal investigators have been at the center of this investigation as a core part of our responsibility to safeguard the integrity and efficiency of Treasury programs and operations,” Sciurba said.
The Justice Department’s Civil Division and the U.S. Attorney’s Office for the Northern District of Georgia handled the case. The Treasury’s Office of Inspector General assisted in the investigation.
The settlement resolves allegations only. There has been no determination of liability in the matter.