Furlough Protection for Spirit Airlines Workers: Essential Steps

Furlough Protection for Spirit Airline Employees: Your Legal Checklist for Priority Wage Claims in Chapter 11

If you’re a Spirit Airlines employee facing furlough, demotion, or unpaid compensation in the wake of the company’s August 29, 2025, Chapter 11 filing, this guide is for you.

Under federal law, certain unpaid wages and benefits are granted priority status—meaning you have a legal edge over most creditors when it comes to getting paid. This post breaks down what that means, how much you can claim, and the exact steps to protect your rights through a formal Proof of Claim.

Whether you’re a flight attendant, pilot, or ground crew member, this checklist is your starting point for navigating the bankruptcy process with confidence and precision.

Updated on September 27, 2025.

Key Takeaways for Furloughed Spirit Airlines Flight Attendants and Employees

• Bankruptcy Filing Date: Spirit Airlines filed for Chapter 11 on August 29, 2025. Any unpaid wages earned before this date are considered pre-petition claims.
• Priority Wage Protection: Under Section 507(a)(4) of the U.S. Bankruptcy Code, employees can claim up to $17,150 in unpaid wages, commissions, vacation, severance, and sick leave earned within 180 days before the filing.
• Proof of Claim Required: To secure payment, employees should file Official Form 410 with the court-appointed claims agent (Epiq) before the Bar Date. Make sure with your union and union representative.
• Furlough vs. Layoff: Furloughs may preserve benefits like medical coverage, depending on union agreements (e.g., AFA-CWA, ALPA). Employees should verify benefit status and payment obligations.
• 401(k) Protections: Retirement funds are generally protected from bankruptcy. However, unpaid matching contributions may be eligible under Section 507(a)(5).
• Lead case: Spirit Aviation Holdings, Inc., Case No. 25-11897, Jurisdiction: U.S. Bankruptcy Court, Southern District of New York

The Immediate Takeaway on Spirit Airlines Furlough

If you are a Spirit Airlines employee impacted by the recent furloughs or demotions, any unpaid wages, salaries, or accrued benefits (like vacation or sick leave) earned before August 29, 2025 (the date Spirit filed for Chapter 11 bankruptcy), are considered pre-petition claims.

Under the U.S. Bankruptcy Code, a portion of these claims is given priority status, meaning you stand a much better chance of being paid than other general creditors. You might have to formally file a Proof of Claim to protect this right.

 What is a “Priority Wage Claim” and What is the Limit?

In Chapter 11 bankruptcy, employees are considered unique creditors, to the point, you have probably seen the headlines of CEOs cashing out bonuses while bankruptcy is pending.

The Bankruptcy Code (Section 507(a)(4)) grants priority status to specific claims such as unpaid wages, salaries, commissions, and accrued vacation, severance, and sick leave pay.

Your claim receives priority status only up to $17,150 per employee. This limit applies to amounts earned within 180 days before the bankruptcy filing date (August 29, 2025).

If the amount owed exceeds the $17,150 limit, it will be classified as a General Unsecured Claim, which has a much lower chance of full recovery. This is comparable to credit cards and unsecured debts in Chapter 13, where secured debts are the priority, or priority unsecured debts such as taxes and Domestic support obligations (spousal support, child support).

You can read more about Section 507 via this link.

Your Step-by-Step Action Plan with Proof of Claims (How to File)

To ensure your claim is protected and maximized, consider filing a Proof of Claim.

Step	Action Required	Details You Need
1. Gather Documentation	Collect all relevant employment records.	Pay stubs, W-2s, a final termination notice, union correspondence (AFA-CWA or ALPA), and any documentation showing accrued but unpaid benefits.
2. Access the Case Information	Locate the official court website for the Spirit Airlines bankruptcy.	The lead case is Spirit Aviation Holdings, Inc., Case No. 25-11897 in the U.S. Bankruptcy Court for the Southern District of New York. The claims agent is Epiq.
3. Obtain the Proof of Claim Form	Download and complete the Official Form 410.	The form is available on the Epiq claims agent website. Be sure to select the box for “Wages, Salaries, and Other Compensation” and list your priority amount ($$, up to $17,150).
4. File the Form	Submit the form before the established Bar Date.	The Bar Date (claims filing deadline) has not yet been set for employees, but you should file as soon as possible. The form must be mailed to the claims agent (address available on the Epiq site) or filed electronically.
5. Stay Informed	Monitor the official docket and your union’s updates.	The bankruptcy process is long. Your union is actively negotiating, but your individual claim must still be filed to protect your rights.

You can search the status of the case via PACER.gov. The video and blog post below explain how to do so.

• Using PACER for Bankruptcy Case Updates
• PACER YouTube video and Channel (How to)

Severance Packages

If you were promised a severance package that has not been paid, the post-petition portion of that amount (for work done after August 29, 2025) may be considered an Administrative Claim, which has a better chance of full payment.

Furlough vs. Layoff and Benefits

The term “furlough” is significant here, as it implies a temporary leave of absence, which often includes keeping certain benefits, which is common in airline labor contracts. For example, Spirit Airlines has that employees on voluntary furlough may retain medical benefits.

Make sure to review your union (AFA-CWA or ALPA) to confirm the exact status, duration, and any required premium payments to keep your health coverage active.

Retirement Accounts (401k)

Your retirement funds are generally protected from the bankruptcy process as they are held in trust and are not considered part of the company’s assets. If there are unpaid matching contributions that pertain to before the filing date, then see the Proof of Claim (Section 507(a)(5) priority).

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can find additional categories by clicking below or by using the search feature at the top of this page:

• Bankruptcy
• Your Wallet

This is a legal information post and not legal advice. The deadlines and specific amounts are subject to change by the court. Consult an attorney immediately to protect your full legal rights in the Spirit Airlines Chapter 11 case as well as your union or union representative.