During the height of the COVID-19 pandemic, the U.S. government stepped in to help struggling businesses stay afloat.
Among the hardest-hit industries was air travel, which came to a virtual standstill.
Now, years later, Delta Air Lines is in the spotlight—not for its flights, but for how it handled those emergency relief funds.
Delta Accused of Going Over the Limit
Delta Air Lines, based in Atlanta, Georgia, has agreed to pay $8.1 million to settle allegations that it overpaid some of its top employees—going beyond what was allowed under the rules of the Payroll Support Program (PSP).
That program was created by Congress in March 2020 as part of the CARES Act, aiming to keep airline workers on payroll during the pandemic.
To receive funds, participating airlines had to agree to specific conditions.
One of those conditions? Limits on how much they could pay executives and high-earning employees.
For example, those earning more than $425,000 a year were not supposed to receive raises or bonuses above a certain threshold.
What Delta Allegedly Did Wrong
According to federal officials, Delta agreed to these conditions in 2020 and 2021 when it received support from the Treasury Department.
But between March 2020 and April 2023, the airline allegedly paid some executives more than the agreed-upon limits.
Not only that, but Delta is accused of misreporting this in its quarterly filings and failing to notify the Treasury when it realized the mistake—an action that could have triggered a clawback of the funds.
Justice Department Weighs In
Brett Shumate, Assistant Attorney General for the Justice Department’s Civil Division, emphasized that these funds were intended to provide essential lifelines, not bonus boosts for executives.
“The PSP was meant to keep the airline industry afloat,” he said.
“When companies break the rules, they need to be held accountable.”
U.S. Attorney Theodore Hertzberg echoed the sentiment, stressing that companies who take public money owe it to taxpayers to follow the rules—especially when it’s pandemic relief on the line.
Treasury Inspector General Joins the Effort
The Treasury’s Office of Inspector General was also deeply involved in the investigation.
Deputy Inspector General Loren Sciurba stated that their investigators played a crucial role in uncovering what happened.
“We remain committed to ensuring public funds are used properly and not taken for granted,” he said.
Whistleblower Behind the Case Will Be Rewarded
Interestingly, this entire issue came to light thanks to a whistleblower complaint filed under the False Claims Act.
A private entity called H. Remidez LLC filed the suit on behalf of the government, which triggered the investigation.
Under whistleblower laws, those who alert the government to fraud can receive a portion of any settlement.
In this case, H. Remidez LLC will receive $850,500.
Final Notes and Legal Details
The case, officially titled United States ex rel. H Remidez LLC v. Delta Air Lines Inc. (filed in Georgia’s Northern District), was handled by a team of attorneys from the Justice Department and the U.S. Attorney’s Office.
It’s important to note that this was a civil settlement, and Delta has not admitted to any wrongdoing.
These are still only allegations, and no court has found the airline liable.