Daniel George began working as a pilot for Piedmont Airlines on March 5, 2018. In addition to his civilian employment, he served as a Lieutenant Colonel in the United States Air Force Reserve, qualifying him as a protected employee under the Uniformed Services Employment and Reemployment Rights Act (USERRA). In October 2019, George received long-term military orders and promptly notified Piedmont of his deployment. He remained on Piedmont’s Pilots Seniority List during his service.
In September 2021, Piedmont created a Pilot Retention Bonus Program through a Letter of Agreement (LOA) that was incorporated into the collective bargaining agreement with the Air Line Pilots Association (ALPA). The program offered bonuses of $70,000 to eligible pilots who transitioned to American Airlines, Piedmont’s parent company, within a year of the program’s start. Because George was on the Seniority List, he qualified under the program’s terms. In November 2021, while still on military leave, George was hired by American Airlines and given a December 29, 2021 class date.
On December 9, 2021, George informed Piedmont of his resignation, effective December 28, 2021, to begin employment with American. Piedmont confirmed his eligibility for the bonus. The next day, however, Piedmont told him his resignation was effective immediately due to his military leave status. On December 20, 2021, he was notified he would not receive the $70,000 bonus because he had not met the program’s qualifying hours requirement. After internal inquiries and union involvement, a grievance was filed on his behalf in February 2022.
A hearing took place on December 8, 2022, before Arbitrator Lawrence Holden. Piedmont contended George was ineligible because he failed to apply for reemployment after military service, which made him no longer an employee when hired by American Airlines. The arbitrator agreed, ruling on February 28, 2023, that George was not entitled to the bonus because he was not a Piedmont employee at the relevant time.
George filed a USERRA lawsuit against Piedmont on October 11, 2023, alleging the refusal to pay the bonus violated his employment rights as a reservist. Piedmont moved to dismiss, asserting that the Railway Labor Act (RLA) barred the claim because disputes tied to the collective bargaining agreement must be resolved through arbitration. Piedmont also argued res judicata applied due to the prior arbitration decision.
The court analyzed the claim under Rule 12(b)(1), addressing subject matter jurisdiction. It noted that while federal claims under USERRA are generally independent, George’s claim originated from a contractual right established in LOA 44 within the collective bargaining agreement. Because resolution of the dispute required interpretation of that agreement, the matter was governed by the RLA’s mandatory arbitration framework. The court held that this placed the dispute outside federal jurisdiction.
On January 3, 2025, the United States District Court for the Eastern District of Pennsylvania granted Piedmont’s motion to dismiss. The court ruled it lacked subject matter jurisdiction under the Railway Labor Act and dismissed George’s complaint.
If you have faced challenges related to reemployment, benefits, or discrimination under USERRA, Whitcomb, Selinsky PC assists with matters involving employment rights for service members. Reach out to contact us to learn how our team can help with your USERRA concerns.