Jury Awards $2.17 Million in SkyWest Airlines Sexual Harassment Case

Background

SkyWest Airlines, a regional carrier based in Utah, has come under legal scrutiny after a federal jury ruled in favor of a former employee who endured severe workplace sexual harassment. The case was filed by the U.S. Equal Employment Opportunity Commission (EEOC) on behalf of Sarah Budd, a parts clerk who suffered repeated verbal abuse and crude sexual remarks from coworkers and at least one manager. Despite reporting the conduct, the airline failed to take meaningful corrective action.

Incident Details

Sarah Budd, a long-serving employee and survivor of sexual assault, was subjected to persistent harassment during her time at SkyWest. The misconduct included demeaning sexual comments, suggestions about prostitution, offensive remarks about rape victims, and explicit jokes. The behavior reportedly came from multiple male coworkers and even a manager.

Despite Budd’s complaints to her supervisor and the employee relations department, the airline did not conduct a thorough investigation. Several witnesses and implicated employees were never interviewed, and critical follow-up questions were not asked. While SkyWest initially pledged disciplinary action and harassment training, these measures were either minimal or ultimately canceled once Budd left the company. It was only after litigation began that any significant training was provided—three years after the reported incidents.

Legal Background

The case falls under Title VII of the Civil Rights Act of 1964, which prohibits sex-based discrimination and retaliation in the workplace. Employers are legally obligated to take immediate and appropriate action once they become aware of harassment. Failure to act constitutes a violation of federal law, especially when the harassment creates a hostile work environment.

The lawsuit was filed in the U.S. District Court for the Northern District of Texas (Civil Action No. 3:22-cv-01807) after pre-litigation conciliation attempts failed.

Verdict and Settlement

A Dallas jury unanimously found SkyWest liable for maintaining a hostile work environment. Budd was awarded $2 million in punitive damages and $170,000 for emotional distress—the largest EEOC trial award ever recorded in the Northern District of Texas. However, due to Title VII’s statutory cap on damages, the judgment was later reduced to $300,000.

SkyWest was not found liable for retaliation, despite placing Budd on indefinite administrative leave following her complaint.

Key Takeaways

1. Ignoring complaints leads to liability: Employers who fail to respond promptly and thoroughly to harassment complaints risk legal and financial consequences.
2. Incomplete investigations can harm victims: A superficial internal investigation can cause further trauma and diminish trust in workplace processes.
3. Proactive measures are essential: Delayed or reactionary training is not a substitute for a proactive, preventive approach to workplace conduct.

Conclusion

The outcome of this case sends a strong message to employers across all industries: workplace harassment, particularly from individuals in positions of power, cannot be tolerated or mishandled. Beyond financial penalties, reputational damage and employee distrust are lasting consequences. Organizations must adopt a zero-tolerance policy and back it with effective enforcement and accountability.

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