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CASES

United Airlines Severance Benefits

  • Should be Empty:

Hoffman v. United Airlines, Inc.U.S. District Court for the Northern District of Illinois
Case No. 21-06395

Case Status

On May 1, 2025, the Court granted Defendants’ motion to dismiss the case. Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Seventh Circuit. Subsequently, the parties agreed to settle the class action lawsuit. Upon request from the parties, the Court of Appeals issued an order of limited remand that provides the District Court with the jurisdiction to review, approve and effectuate the Settlement. 

On April 20, 2026, the parties filed a joint motion for preliminary approval of the Settlement. The Settlement provides that Defendants will pay a total of $27.5 million to resolve the claims of the Class and the Named Plaintiffs, to pay Class Counsel’s fees and costs in an amount awarded by the Court, to pay Service Awards to the Named Plaintiffs, to defray 50% of the cost of the third-party Settlement Administrator, and to pay any actual or estimated taxes that are the obligation of the Settlement Fund.

The following groups have been established for allocation of the proposed Settlement Fund to Class Members:

1.    Group A: Frontline and Management and Administrative Employees who did not retire under any Voluntary Separation Program. 
a.    A1 - VSL Eligible: Group A1 Class Members who were VSL eligible have damages equal to the monetary incentive under VSL. There are approximately 2,608 Class Members in this group.
b.    A2 - VSP2 eligible but not VSL eligible: Group A2 Class Members who were VSP2 eligible but were not VSL eligible have damages equal to the monetary incentive under VSP2(b). There are approximately 1,607 Class Members in this group. 
c.    A3 – VSP3 eligible but not VSP2 or VSL eligible: Group A3 Class Members who were VSP3 eligible but were not VSP2 or VSL eligible have damages equal to the monetary incentive under VSP3. There are approximately 74 Class Members in this group.

2.    Group B: Frontline and Management and Administrative Employees who retired under VSP2.
a.    B1 - VSL Eligible: Group B1 Class Members who retired under VSP2 and were VSL eligible have damages equal to the difference between the monetary incentive under VSL and VSP2(b). The difference will then be reduced by 20%. There are approximately 3,976 Class Members in this group.

3.    Group C: Frontline and Management and Administrative Employees who retired under VSP1.
a.    C1 – VSL eligible: Group C1 Class Members who were VSL eligible have damages equal to the monetary incentive under VSL reduced by 20%. There are approximately 259 Class Members in this group.
b.    C2 – VSP2 eligible but not VSL eligible: Group C2 Class Members who were not eligible for VSL but were eligible for VSP2 have damages equal to the monetary incentive under VSP2(b) reduced by 20%. There are approximately 111 Class Members in this group.
c.    C3 – VSP3 eligible but not VSP2 or VSL eligible: Group C3 Class Members who were VSP3 eligible but not VSP2 or VSL eligible have damages equal to the monetary incentive under VSP3 reduced by 20%. There are approximately 6 people in this group.

The 20% reduction for Groups B and C reflects the fact that members of these groups signed releases when they elected to receive the benefits of VSP1 or VSP 2. Defendants assert that the terms of those releases bar the claims made in the lawsuit. If the Defendants’ argument were to be accepted by the court or a jury, this would preclude Groups B and C from recovering anything in the lawsuit.

Defendants will provide 8 vacation passes, as defined in the Settlement Agreement, for use on flights operated by United to each Class Member. 

After the Court grants preliminary approval, you will receive a notice if you are a Settlement Class Member. The notice will provide you with a summary of the Settlement terms, the amount of the Settlement, the method by which the Settlement will be allocated among the Settlement Class Members, the amount of fees, costs and Named Plaintiff Awards that will be requested, how to obtain additional information, and the date and location of the Final Approval Hearing.
 

Case Overview

Keller Rohrback and co-counsel represent Plaintiffs, former United Airlines (“United”) employees, in this class action lawsuit that alleges United violated ERISA or Illinois state law with respect to promised severance benefits.

In 2017, United recognized that employees were reluctant to retire because they did not want to miss out on enhanced retirement, medical, and other benefits that the airline periodically offered through voluntary separation programs. In an effort to reduce its workforce, United promised its employees that if they retired and within three years thereafter it offered any severance program providing better benefits than the employee received at their retirement, those employees would receive benefits under that superior program. Plaintiffs retired within that three-year period, but were wrongfully denied benefits under one or both of several severance programs offered during that time -- (1) United’s Voluntary Separation Program 2 (“VSP2”) offered in June 2020, and/or United’s Frontline Voluntary Separation Leave Program (“VSL”) offered in January 2021; or United’s Voluntary Separation Program 3 (“VSP3”). 

Plaintiffs seek payment of benefits and all other relief and damages due them under ERISA on behalf of themselves and other similarly situated former employees of United. In the alternative, Plaintiffs assert claims under state law for breach of contract and seek specific performance and all other available relief in law and equity.

07/05/2022

Second Amended Class Action Complaint

04/20/2026

Memorandum Support Joint Motion for Preliminary Approval of Settlement

04/20/2026

Declaration Support Joint Motion for Preliminary Approval of Settlement

05/08/2026

Supplemental Memorandum Preliminary Approval of Settlement

05/08/2026

Revised Class Notice

Practice Areas

  • Employee Benefits & Retirement Security (ERISA)

Attorneys

Jeffrey Lewis

Partner

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(800) 776-6044    [email protected]

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