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The recent $18.5 million settlement in Huntsman v. Southwest Airlines Co. represents the largest USERRA class action recovery reported to date and signals a significant shift in how employers approach paid short term military leave when other comparable short leaves (e.g., jury duty, bereavement) are paid. Under the proposed deal, approximately 2,791 employees will share monetary relief and—importantly—the company will implement up to 10 paid days per year of short term military leave beginning in 2026 and continuing through 2030. This paid-leave policy acts as a practical benchmark for HR leaders across industries.

Courts across multiple circuits—including the Seventh, Third, and Ninth—now agree: if you pay for jury duty or bereavement leave, you must treat short-term military leave equally. This is not an industry-specific issue; retail and logistics employers have also faced multimillion-dollar settlements.

The policy implemented under the Huntsman settlement agreement is a benchmark, not a legal trigger. Employers should act now because USERRA obligations already exist–and class action litigation is rising.

USERRA Quick Reference for HR

The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law guaranteeing job protections for employees who serve in the U.S. uniformed services, including the Armed Forces, National Guard, and certain federal service corps. It requires employers to reinstate qualifying employees to the job (or a comparable job) they would have held but for service, including the same status, seniority, pay, and benefits. It applies to virtually all employers, regardless of size.

USERRA also provides strict reemployment timelines—employees must apply for reinstatement within 90 days for service under 180 days—and forbids discrimination or retaliation based on military service. Key benefits include health coverage continuation for up to 24 months and protection of pension/service credits.

Tip: USERRA’s comparability test focuses on duration (most important), purpose, and employee control over timing. Short-term military leave often matches jury duty on these factors.

Why This Matters for Your Organization

USERRA itself does not create a  right to paid military leave; rather, it requires equal treatment when an employer chooses to pay for comparable short term non military leaves. “Comparable absence” refers to other types of short-term leave that share similar characteristics with military leave - primarily duration, but also purpose and employee control over timing. Examples include jury duty, bereavement leave, or court appearances. Points to ponder:

  • If you provide paid leave for comparable absences (jury duty, sick leave), you may be required to provide paid military leave to the same extent.
  • Recent appellate decisions–including the Third, Seventh and Ninth Circuits–reject using frequency (meaning how often employees take different types of leave) as a controlling factor when determining comparability. Even if military leave is taken more or less often than jury duty, this difference doesn't matter for determining equal pay requirements. Comparability turns primarily on per-instance duration, with purpose and employee control also considered. Frequency may still be weighed, but it is not decisive.
  • Courts apply the Department of Labor’s comparability factors–duration (most significant), purpose, and employee control over timing–when assessing whether short-term military leave is comparable to other short-term leaves. This approach is consistent across circuits.
  • A retail giant paid $10M in settlement in 2021, showing this risk spans all industries—not just airlines.
  • Class action litigation continues in multiple sectors, signaling that employers who delay policy updates face ongoing exposure.

Your 2026 Action Plan

1. Policy Audits

  • Inventory all paid short term leave categories (jury duty, bereavement, sick) and determine whether short term military duty is excluded from pay. Compare duration, purpose, and employee control to assess risk.
  • Review practices vs. policy. Confirm whether you credit any ancillary benefits tied to paid leave (such as PTO accruals or attendance bonuses) for short-term leaves such as jury duty or bereavement leave, but not for military leave; disparities have triggered liability.
  • Document your comparability analysis (duration, purpose, control) to defend parity decisions if challenged.

2. Policy Updates

  • Adopt a formal paid short term military leave policy aligned to the most generous comparator (e.g., 10 days, mirroring Southwest’s model).
  • Clarify reemployment rights and timelines  and benefits continuation.

3. Training and Procedures

  • Train HR and managers on USERRA requirements. Use Department of Labor (DOL) resources and Employer Support of the Guard and Reserve (ESGR)  assistance.
  • Avoid additional hurdles for military leave requests compared to jury duty/bereavement—courts scrutinize unequal processes.

4. Risk Management

  • Monitor developments—recent USERRA litigation show the financial stakes and practical solutions.
  • Address complaints promptly; retaliation risks are real, and USERRA bars reprisals for asserting rights or assisting others in asserting their rights.

Conclusion

The Huntsman settlement reflects a clear trend: equal pay for equal leave. Beyond legal compliance, HR leaders should proactively equalize treatment of short term military leave and civilian short term leaves for recruitment, retention, and employee morale benefits. Doing so reduces litigation exposure while demonstrating genuine support for employees who serve.

For questions regarding USERRA compliance and its implications for your workforce, feel free to reach out to your Womble Bond Dickinson attorney, the authors of this Insight, or another member of our Labor and Employment Practice Team. We will continue to monitor key USERRA developments and provide updates as warranted, so make sure you are signed up for the Womble Bond Dickinson newsletter.

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