What Hawaiian Airlines Employees Should Know About Their 2026 Severance Package

When a large employer cuts hundreds of positions at once, federal law creates a floor of protections: advance notice, back-pay remedies if that notice is missing, and strict timing rules for any severance agreement that asks workers over 40 to waive age-discrimination claims. State law adds another layer. In Hawaii, how your employer labels a lump-sum payment can determine whether your unemployment benefits start immediately or weeks later. None of these protections kick in automatically; you have to know they exist and assert them inside the window the law gives you.

To see what this looks like in practice, take Keoni, a ramp operations supervisor at Hawaiian Airlines with 11 years of tenure and an annual salary of $78,000. Keoni is 46 years old, which means both the WARN Act and the Older Workers Benefit Protection Act apply to his situation. The examples below follow Keoni through each legal checkpoint so the math is concrete rather than abstract.

What did Hawaiian Airlines actually announce?

Hawaiian Airlines disclosed the elimination of approximately 252 positions, with the announcement reported on June 5, 2026. [1] The company has not publicly disclosed the percentage of its workforce affected by the reduction. Because Hawaiian Airlines operates under the Alaska Air Group umbrella following the 2024 acquisition, employees should confirm which legal entity is listed as the employer on their WARN notice and severance agreement, since the entity name determines which obligations attach.

Does the federal WARN Act apply to a 252-person layoff?

The Worker Adjustment and Retraining Notification Act applies to employers with 100 or more full-time employees. [2] A covered employer must provide 60 calendar days of advance written notice before a qualifying mass layoff or plant closing. [2] A "mass layoff" under the statute means a reduction of at least 50 employees at a single site of employment during any 30-day period, provided those 50 employees constitute at least one-third of the site's workforce, or any reduction of 500 or more employees at a single site regardless of percentage. [2]

Hawaiian Airlines' 252 affected roles almost certainly span multiple locations: Honolulu hub operations, neighbor-island stations, and mainland crew bases. The WARN analysis turns on how many employees lose their jobs at each individual site, not on the company-wide total. The DOL's WARN advisor walks through these thresholds step by step. [3]

When the WARN Act does apply and notice falls short of 60 days, the remedy is back pay and benefits for each day of the shortfall, up to 60 days. [2] Employees do not need to file a claim with an agency first; the statute creates a private right of action in federal court.

Does Hawaii have a state mini-WARN law that goes further?

Hawaii does not have a state-level mini-WARN statute that imposes additional notice requirements beyond the federal WARN Act. Low confidence Some states, such as California, New York, and Illinois, impose longer notice periods or lower headcount thresholds than federal law. Hawaiian Airlines employees working at mainland stations should check whether a mini-WARN law applies in that state. The table below lists selected states with mini-WARN statutes that could affect Hawaiian Airlines crew bases or offices outside Hawaii.

Employees based at mainland stations should confirm whether their site sits in a mini-WARN state by using the DOL WARN advisor. For employees based in Hawaii, federal WARN is the controlling statute.

What OWBPA waiver timing applies to Hawaiian Airlines workers 40 and older?

Any severance agreement that asks an employee aged 40 or older to release age-discrimination claims must comply with the Older Workers Benefit Protection Act. [4] The statute sets two different review timelines depending on whether the layoff is individual or group-based:

• Individual termination: The employee must be given at least 21 days to consider the waiver. [4]
• Group layoff (two or more employees in the same decision unit): The employee must be given at least 45 days to consider the waiver. [4]

Because the Hawaiian Airlines reduction affects 252 workers, the 45-day group timeline almost certainly applies. [5]

After signing, every worker 40 and older gets 7 calendar days to revoke the agreement. [4] The revocation period cannot be shortened or waived. The employer must also disclose the job titles and ages of all employees in the decisional unit who were selected (and not selected) for the layoff. [5]

The EEOC's guidance on waivers explains that a release not complying with OWBPA is voidable, meaning the employee can keep the severance payment and still pursue an age-discrimination claim. [5]

How does a Hawaiian Airlines severance payment interact with Hawaii unemployment insurance?

Hawaii Administrative Rules section 12-5-47 defines "wages" for unemployment insurance purposes and addresses how lump-sum payments affect benefit eligibility. [6] When severance is allocated to a specific period of weeks (for example, "12 weeks of pay"), Hawaii's Department of Labor and Industrial Relations will typically treat those weeks as a period during which the claimant has received wages, delaying the start of unemployment benefits. [6]

A federal advisory letter from the U.S. DOL confirms that states have discretion in how they classify severance, but most states (Hawaii included) look at whether the payment is tied to a specific post-employment period. [7]

For a deeper look at how severance interacts with state taxes and withholding, see the severance tax calculator.

What terms can a departing Hawaiian Airlines employee negotiate?

Severance packages are not set in stone. No federal statute requires private employers to offer severance at all, which means the terms in a separation agreement are a starting point, not a final answer. Common items on the table include:

• Cash multiple. Many airline employees see offers benchmarked to one or two weeks of base pay per year of service. The specific formula Hawaiian Airlines is using has not been publicly disclosed.
• Healthcare continuation. Employers sometimes subsidize COBRA premiums for a defined number of months beyond the legal requirement. COBRA itself simply guarantees the right to continue group coverage at full cost (plus a 2% administrative fee) for up to 18 months.
• Outplacement support. Career coaching or job-placement services, often offered for 60 to 90 days.
• Reference language. A neutral or positive reference letter and an agreement on what the company will say to future employers.

Employees covered by a collective bargaining agreement (many Hawaiian Airlines ground and flight crew positions are union-represented) should review the CBA's layoff and recall provisions before signing an individual severance release. The union may have already negotiated terms that supersede the company's standard offer.

For a walkthrough on pushing back on an initial offer, see our guide on how to negotiate severance and the broader layoff calculator for estimating a reasonable range.

What should Hawaiian Airlines employees do right now?

The clock is already running. For employees 40 and older, the 45-day OWBPA window defines the outer boundary for decision-making. [5] Here are the concrete steps:

1. Read the entire agreement before reacting. Flag the consideration period (21 or 45 days), the revocation period (7 days), and the scope of the release. [4]
2. Request the OWBPA disclosure. The employer must provide the job titles and ages of all individuals in the decisional unit who were and were not selected. [5] If the disclosure is missing, the waiver is defective.
3. Confirm the WARN notice date. Compare your written notice date to your last day of employment. A gap shorter than 60 days may entitle you to back pay. [2]
4. File for unemployment early. Even if severance delays benefits, filing establishes your claim date. Hawaii processes claims through its online portal.
5. Consult an employment attorney. Many offer free initial consultations. An attorney can spot OWBPA defects, WARN shortfalls, or CBA violations that are easy to miss under stress.
6. Run your numbers. Use the layoff calculator to estimate what a market-rate severance package looks like for your tenure, role, and location.

For more on the federal framework, the DOL's WARN FAQ page walks through common scenarios. [3]

Frequently asked questions

Does the WARN Act guarantee severance pay for Hawaiian Airlines employees?

The WARN Act does not require severance pay. The statute requires 60 days of advance written notice before a qualifying mass layoff or plant closing. [2] When an employer fails to provide that notice, the remedy is back pay and benefits for up to 60 days, not a traditional severance package. [2] Severance agreements are separate, voluntary offers from the employer. For more on the distinction, see our WARN Act calculator.

How long do Hawaiian Airlines employees over 40 have to review a severance agreement?

Workers aged 40 and older in a group layoff must receive at least 45 days to consider a severance agreement that includes a waiver of age-discrimination claims. [4] After signing, the employee has 7 additional days to revoke. [4] The EEOC's guidance confirms that any waiver not meeting these timelines is unenforceable and the employee can retain the severance and still bring a claim. [5]

Will severance delay my Hawaii unemployment benefits?

Hawaii's administrative rules classify severance as wages when the payment is allocated to a specific post-employment period. [6] A lump sum labeled as "12 weeks of pay" will typically delay unemployment benefits by 12 weeks. How the payment is characterized in the separation agreement (wages vs. consideration for release of claims) can affect the outcome. Employees should file their UI claim immediately to lock in the claim date regardless. More detail on severance and taxes is available via the severance tax calculator.

Can Hawaiian Airlines employees negotiate their severance offer?

No federal law prevents employees from negotiating severance terms. Common negotiation points include cash multiples, COBRA subsidies, outplacement services, and reference language. Union-represented employees should review their collective bargaining agreement, which may set minimum layoff and recall terms that supersede the employer's standard offer. Our guide on negotiating severance covers specific tactics and benchmarks.

What information must the employer disclose in a group layoff waiver?

Under 29 U.S.C. § 626(f), an employer must provide the job titles and ages of all individuals in the decisional unit who were selected for layoff and all who were not selected. [4] The EEOC's Q&A on waivers explains that the decisional unit can be a department, facility, or division, and the employer must identify it clearly. [5] If this disclosure is absent, the waiver does not meet OWBPA requirements and is voidable.

Where can I verify whether my Hawaiian Airlines site received a proper WARN notice?

The DOL's WARN Act FAQ page explains the filing and notice requirements. [3] Many states, including Hawaii, maintain a public database of WARN filings through the state Department of Labor. Employees can also request a copy of the WARN notice directly from HR. For additional context on WARN thresholds and remedies, see our WARN Act insights page.

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