Southwest Agrees To Pay $1M To Settle Calif. Wage Suit

By Aaron Vehling (June 30, 2014, 3:37 PM EDT) -- Southwest Airlines Co. on Friday agreed to pay $1 million to settle a proposed class action brought by employees who alleged the company failed to provide accurate wage statements and did not pay terminated employees on time, according to documents filed Friday in a California federal court.

The Dallas-based airline will create a fund to settle the claims of more than 5,000 class members in the nine-month-old dispute. According to the settlement agreement, named plaintiff and former employee Timothy Mansfield will receive a $5,000 bonus and the plaintiffs' attorneys will ask for 25 percent of the fund for fees.

"After serious,...

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