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PrimeFlight Aviation Services
Basics
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PrimeFlight is a Nashville-based company that contracts with airlines to provide ground
handling, aircraft cleaning, and terminal/passenger services.i
PrimeFlight is a subsidiary of SMS Holdings, a privately held company that also provides
janitorial, security, and other services.ii
PrimeFlight has approximately 5,000iii employees at 44 airports nationwide, and
estimated annual revenue of $30 million.iv
Regional Presence
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According to a September 2014 City of Philadelphia Right to Know Request, PrimeFlight
has 443 badges at Philadelphia International Airport. PrimeFlight workers provide
skycap, baggage, wheelchair and customer services for American Airlines, US Airways,
Lufthansa, and other airlines.
According to a July 2014 Port Authority of NY and NJ Freedom of Information Request,
PrimeFlight has 635 employee badges at Newark Liberty International Airport.v
PrimeFlight workers serve as skycaps, wheelchair attendants, baggage handlers, and
cabin cleaners. At Newark Liberty International Airport, PrimeFlight services American
Airlines, United, and US Airways.vi
According to a July 2014 Port Authority of NY and NJ Freedom of Information Request,
PrimeFlight has 545 employee badges at LaGuardia Airport.vii PrimeFlight workers
providing skycap, wheelchair services, cabin and terminal cleaning, baggage handling,
and customer services for American, AirTran, and US Airways and other airlines.viii
Health and Safety
PrimeFlight has a track record of health and safety citations, across multiple locations:
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In 2010, PrimeFlight paid $750 to settle 4 OSHA health and safety citations at San Diego
and paid another $700 for an OSHA citation at SeaTac in 2013ix.
In October 2011, a Newark Liberty International Airport PrimeFlight employee sued the
company, claiming that she suffered serious injuries after the company vehicle she was
riding in crashed into a pole.x The employee alleges that the van was driven by a worker
who was not licensed to operate such a vehicle and/or had no experience in driving such a
vehicle upon the road or tarmac of the airport. PrimeFlight denied the allegations. The
case remains open as of November 18, 2014, with hearing scheduled for December 5,
2014.xi
Wage and Hour
PrimeFlight has a troubling history of wage and hour claims and paying large settlements
regarding its employees at airports across the country.xii Since 2005, total settlements, back
wages, and penalties for these violations (including one pending settlement) exceed $1.4 million.
Many of these employee wage and hour disputes have taken place at airports in the New York
metro area:
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PrimeFlight recently agreed to a $605,503 settlement in a wage and hour class action
lawsuit brought by a former LaGuardia Airport porter on behalf of tipped PrimeFlight
employees in New York State. The proposed joint settlement was approved by the U.S.
District Court for the Eastern District of New York (Brooklyn) on October 9, 2014. In
this case, initially filed October 3, 2011, the former employee alleged that he and other
workers were not paid time and a half for overtime, were not informed that the company
was applying a tip credit to their wages, were forced to report $60 per week in tips
regardless of what they earned, and were not paid a required uniform maintenance
payment.xiii The settlement affects over 1,000 current and former PrimeFlight employees
at LaGuardia Airport.xiv
In December 2005, a Newark Liberty International Airport cabin cleaner filed a wage and
hour complaint after PrimeFlight paid him at a lower rate than his normal rate for his
vacation. The cleaner claimed to have asked PrimeFlight several times to correct his
check, but the discrepancy was never addressed.xv The New Jersey DOL ordered
PrimeFlight to pay over $670 in back wages and was assessed a $500 penalty.xvi
In April 2008, the New Jersey DOL ordered PrimeFlight to pay nearly $200 in back
wages to a Newark Liberty International Airport cabin cleaner for failure to pay vacation
time.xvii
In October 2010, following an investigation by the U.S. Department of Labor,
PrimeFlight agreed to pay back wages of more than $5,700 to 74 LaGuardia Airport
employees for failure to properly pay overtime.xviii
In 2011, a worker at Newark Liberty International Airport filed a complaint over
PrimeFlight’s failure to pay him for hours worked. PrimeFlight was subject to an order
from the New Jersey DOL to pay over $112 in back wages and incurred a $1,000 penalty.
xix
PrimeFlight has also been the subject of many wage and hour claims by its employees working at
other airports:
 In 2008, PrimeFlight and US Airways were subject to a class action lawsuit brought in
federal district court in Massachusetts on behalf of PrimeFlight skycaps providing
services to US Airways who alleged that because skycaps were required to make up any
negative difference between bag fees due and bag fees collected out of their tips that
PrimeFlight could not take a tip credit on the skycaps wages and should have been paying
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them the full minimum wage. Although PrimeFlight denied the allegations, in 2009 it
agreed to a $750,000 settlement that provided back wages and attorneys’ fees to a class of
over 400 employees.xx
In February 2008, over $2,600 in back wages was awarded to a skycap in Lexington, SC
for failure to supplement tips that fell short of the minimum wage. xxi
In April 2008, PrimeFlight negotiated a settlement of $2,850 on behalf of 19 employees
in Nashville TN in response to a complaint that the company was failing to pay tipped
employees the minimum wage and requiring them to report tips they hadn’t received. xxii
Two PrimeFlight employees in Florida sued for unpaid overtime wages, unpaid minimum
wages, and retaliation. One worker was allegedly terminated after speaking out about
unpaid wages. In June 2008, PrimeFlight settled with both workers for a total of $13,500
in back wages, liquidated damages and attorneys’ fees. xxiii
In February 2009, following an investigation by the U.S. Department of Labor,
PrimeFlight agreed to pay over $6,360 to 35 Byrd Airport (Richmond, VA) employees
for failing to supplement passenger tips that were insufficient to meet minimum wage
requirements for wheelchair skycaps and curbside skycaps, requiring employees to report
more tips than they received, and paying incorrect overtime premium on several
occasions.xxiv
In September 2011, following an investigation by the U.S. Department of Labor,
PrimeFlight agreed to pay over $10,400 in back pay to 43 of its employees working the
Rochester Airport whose tips did not bring them up to the minimum wage. PrimeFlight
was also assessed over $23,000 in civil penalties, though it’s not clear whether the DOL
ever collected the penalty.xxv
In September 2012, following a U.S. Department of Labor investigation, PrimeFlight
agreed to pay over $33,000 in back wages to 53 employees working at the Buffalo
International Airport for failure to properly pay minimum wages.xxvi
A Department of Labor investigation in El Paso, Texas of SMS Holdings, PrimeFlight’s
parent company, found that 34 employees were owed more than $15,400 for failure to
comply with minimum wage and overtime law.xxvii
Public Subsidies
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Since 2008 as part of the Work Opportunity Tax Credit Program, PrimeFlight was
certified by the New Jersey Department of Labor to receive federal tax breaks for more
than 230 workers hired in New Jersey. The Work Opportunity Tax Credit is a federal tax
credit available to employers for hiring individuals from certain target groups who have
consistently faced significant barriers to employment.xxviii Assuming the maximum
allotment for each employee was received and that each certified employee worked with
PrimeFlight for two years, PrimeFlight could have received as much as $1.3 million in
federal tax breaks. xxix
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PrimeFlight’s recruitment is subsidized by the New York City Small Business Services
division. xxx NYC SBS provides recruiting and screening services free of charge to
businesses in NYC.xxxi The NYC Small Business Services estimates an average savings
of $720 per person hired.xxxii Using this estimate, and assuming the company hired the
employees referred by the state agency, PrimeFlight could have received as much as
$22,000 in savings from using NYC SBS’ WorkForce1 Centers in 2012. PrimeFlight
also received a training grants fund from NYC Small Business Services for more than
$17,000.xxxiii
PrimeFlight has received recruitment services from One-Stop Centers in New
Jersey. One-Stop Centers provide recruiting and screening services free of charge to
businesses in NJ.xxxiv The NYC Small Business Services estimates an average savings of
$720 per person hired.xxxv Using this NYC-based estimate as guide, and assuming the
company hired the employees referred by the state agency, PrimeFlight could have
received as much as $97,000 in savings from using New Jersey’s One-Stop Centers in
2012 and 2013.xxxvi
Passenger Safety
US Airways recently agreed to pay $1.2 million civil penalty under a consent order with the
Department of Transportation after the DOT found that the carrier failed to provide adequate
wheelchair assistance to disabled passengers in Philadelphia and Charlotte, North Carolina.xxxvii
Passengers requiring wheelchair assistance flying on airlines that contract with PrimeFlight have
alleged injuries while in the care of PrimeFlight. Some examples include:
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A passenger sued American, who in turn sued PrimeFlight, relating to an incident when
she was traveling from New York to Chicago in December 2005.xxxviii She alleged in her
complaint that she needed wheelchair assistance because she was unable to walk or stand
for long periods of time. She claimed that when boarding the plane, she was told to get
out of the wheelchair and walk through the final portion of the jet bridge, at which point
she fell. She claims to have suffered serious personal injuries to her back, requiring
surgery and aggravation to prior knee injuries.xxxix PrimeFlight and American denied all
negligencexl and the case was settled out of court in 2009. xli
A retired U.S. Air Force veteran, who is quadriplegic from multiple sclerosis, brought a
lawsuit against American Airlines and PrimeFlight regarding a flight from Dallas, Texas
to Dayton, Ohio in May 2003. She claims that while being assisted off the plane, she was
not adequately strapped into her wheelchair and while being pushed, she tumbled out of
the chair and struck the floor and/or seats, causing severe personal injuries including
spinal fractures, numerous cuts and serious bruises.xlii The passenger brought a suit
against American Airlines and PrimeFlight, both of whom denied all allegations.xliii The
case was settled out of court in 2006.xliv
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i
A 90 year old woman who was flying with her daughter from Philadelphia to Dallas on
American Airlines in 2009 brought a lawsuit against PrimeFlight and American after
allegedly sustaining injuries while getting into a PrimeFlight wheelchair. The woman
alleges that she used a walker to exit her vehicle and fell while attempting to get into the
wheelchair which was placed on an incline and not secured. Her fall allegedly required
hospitalization and caused permanent injury.xlv Both PrimeFlightxlvi and Americanxlvii
denied the allegations, and American initiated a third party complaint against the
woman’s daughter alleging that it was her negligence that caused the incident.xlviii The
case was settled out of court in 2010.xlix
A woman required wheelchair assistance while flying from Houston to Washington DC
in 2009. In the course of providing boarding assistance in Houston, a PrimeFlight
employee allegedly pushed her chair at an unsafe speed causing her to fall from the chair
when it hit a bump. She sued PrimeFlight, alleging injuries due to PrimeFlight’s
negligence that required hospitalization once she arrived in DC.l The case was settled out
of court in 2012.li
http://primeflight.com/services/
http://smsholdings.com/index.php/companies/
iii
http://smsholdings.com/index.php/companies/primeflight/
iv
Hoover’s profile, 2012, page 5.
v
Port Authority of New York and New Jersey Badging data from October 2013.
vi
SEIU Local 32BJ Staff Observations
vii
Port Authority of New York and New Jersey Badging data from October 2013
viii
SEIU Local 32BJ Staff Observations
ix
1 serious violation with a $700 fine: https://www.osha.gov/pls/imis/establishment.inspection_detail?id=316772029
4 violations (other) with a $750 fine reached through informal settlement:
https://www.osha.gov/pls/imis/establishment.inspection_detail?id=312682735
x
Marie Montsanto vs. PrimeFlight Aviation Services, Inc., Essex County Court Docket # L 008550 11
Complaint for Jury Demand, Demand for Answers to Form Interrogatories Demand for Discovery, page 3.
xi
Ibid, Case proceeding list
xii
FOIAs pending for Philadelphia state-level wage and hour charges for PrimeFlight and other SMS subsidiaries, FOIAs are also pending for NY
and NJ for other SMS subsidiaries, and for PrimeFlight and other SMS subsidiaries for PF and all other subsidiaries.
xiii
Fernandez v. PrimeFlight Aviation Services, Inc., et al, No. 1:11-cv-04862-KAM-CLP (E.D. NY), Amended Complaint, see pages 1-3
xiv
Ibid, Memorandum of Law in Support of Plaintiff’s Motion for Preliminary Approval of Settlement, see pages 8-10.
xv
State of New Jersey Department of Labor and Workforce Development Government Records Request, Prime Flight Aviation Services, GE240-0106-SAN
xvi
State of New Jersey Department of Labor and Workforce Development Government Records Request, Prime Flight Aviation Services, GE240-0106-SAN
xvii
State of New Jersey Department of Labor and Workforce Development Government Records Request, PrimeFlight Aviation Services Inc.,
WC-1698-1007-SAN
xviii
US DOL case ID: 1577742, NYC District Office, received via September 30, 2013 FOIA.
xix
State of New Jersey Department of Labor and Workforce Development Government Records Request, Prime Flight Aviation Services, GE2957-1011-REY
xx
Mitchell et al v. US Airways, Inc. et al, No 1:08-cv-10629-WGY (MA) Plaintiff’s Motion for Final Approval of Class Action Settlement with
Defendant Prime Flight Aviation Services, Inc., see pages 1-3.
xxi
US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1538615, page
4
xxii
US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1538615, page
3
xxiii
Ines Herrera vs. PrimeFlight Aviation Services, Inc. “Settlement Agreement” Exhibit A-1, A-B, 0:08-cv-60097-DTKH
xxiv
US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1538615, page
2
xxv
US DOL case ID: 1603421, received via September 30, 2013 FOIA.
xxvi
US DOL case ID: 1631048, Albany NY District Office, received via September 30, 2013 FOIA.
xxvii
US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1505162,
page 1
xxviii
United Stated Department of Labor Employment and Training Administration website: http://www.doleta.gov/business/incentives/opptax/,
Accessed 10/16/2013
ii
xxix
Calculation derived from information received via a New Jersey Department of Labor Workforce Development Division Freedom of
Information Request received August 27, 2013. Request Number W79365. For each WOTC employee certified in the “I” category, a maximum
tax credit is $4,000 per year for the first year and a maximum of $5,000 for the second year. For all other WOTC employee certification
categories, the maximum tax credit is up to $2,400 a year, for two years. In 2013, there was 1 certification; in 2012 there were 11 certifications; in
2011 there were 25 total certifications: 21 certifications and 4 “I” certifications; in 2010 there were 20 total certifications: 15 certifications and 5
“I” certifications, in 2009 there were 102 total certifications: 94 certifications and 8 “I” certifications; in 2008 there were 80 total certifications:
60 certifications and 20 “I” certifications. .
xxx
SBS Freedom of Information Law Request, Correspondence #1-1-875402569, 10/9/2013.
xxxi
New York City Small Business Services Website: http://www.nyc.gov/html/sbs/nycbiz/html/summary/recruitment.shtml, Accessed
10/16/2013.
xxxii
New York City Small Business Services Website: http://www.nyc.gov/html/sbs/nycbiz/html/summary/recruitment.shtml, Accessed
10/16/2013
xxxiii
SBS Freedom of Information Law Request, Correspondence #1-1-875402569, 10/9/2013.
xxxiv
New Jersey Department of Labor and Workforce Development Website:
http://jobs4jersey.com/jobs4jersey/employers/findemp/, Accessed 10/16/2013.
xxxv
New York City Small Business Services Website: http://www.nyc.gov/html/sbs/nycbiz/html/summary/recruitment.shtml, Accessed
10/16/2013.
xxxvi
Open Public Records Act Request, OPRA – W79367 – PrimeFlight One Stop Career Centers, Prepared 9/18/2013.
xxxvii
Consent Order, Docket OST -2013-0004, Issued by the Department of Transportation on November 4, 2013, page 4.
xxxviii
Winslow v. American Airlines, Inc. et al, No. 2:07-cv-00236-MVL-KWR (E.D. La), Complaint (see pages 1-2) and Third Party Complaint.
xxxix
Ibid, “Petition for Damages,” page 1 and 2.
xl
Ibid, “Answer to Complaint,” page 2.
xli
Ibid, Order of Dismissal.
xlii
Reilly v. American Airlines et al, No. 3:05-cv-00213-WHR (S.D. Oh), Complaint, see pages 3-4.
xliii
Ibid, Answer of PrimeFlight and Answer of American Airlines.
xliv
Ibid, Entry of Dismissal by PrimeFlight and Submission of Dismissal by American Airlines.
xlv
Volk v. AMR Corp et al, No 2:09-cv-04634-WD (E.D. Pa), see Complaint filed in the Court of Common Pleas of Philadelphia County, pages
4-5.
xlvi
Ibid, Defendant PrimeFlight Aviation Services, Inc.’s Answer to Plaintiff’s Complaint with Affirmative Defenses
xlvii
Ibid, Defendant American Airlines, Inc.’s Answer, Affirmative Defenses, and Crossclaim.
xlviii
Ibid, Defendant American Airlines, Inc.’s Third Party Complaint Against Linda Baxter, see page 3-4.
xlix
Ibid, Dismissal Order
l
Coleman v. PrimeFlight Aviation Services Incorporated et al, No 4:11-cv-00733-FRZ (AZ), See complaint filed in the Superior Court of the
State of Arizona in and For the County of Pima, pages
li
Ibid, Notice of Settlement.