This message is for pre-merger Hawaiian Flight Attendants
- AFA has filed a grievance disputing the proof of relocation required by management to qualify for the flat rate moving expense
- Flat-rate moving expenses are taxed as bonus wages and are not grossed up, while actual moving expenses reimbursed with receipts will be grossed up to cover taxes owed
Flat Rate Moving Expense Update
Many of you have come to us with concerns about management’s requirement to provide proof of relocation to be eligible for the flat rate moving expense. AFA’s position is that a Flight Attendant does not have to actually move in order to be eligible for the flat rate payment. We are in dispute with management over the requirement and have formally filed a MEC grievance on the issue. The grievance process will take some time to resolve the dispute. In the meantime, we would like to clarify the requirements for those who may be interested in securing the flat rate expense under management’s terms.
First, management is requiring that you actually move, but you do not need to move to Seattle – just a location that makes sense for you to be able to commute to SEA. For example, a move from HNL to a location on the continent such as AUS, SMF, PDX, or DEN, is allowable.
Second, there is no requirement that your move be a permanent one. If you move and a group of Flight Attendants decides to lease a home or large apartment together, with the intention of moving from your current place of residence to SEA or to a location closer to SEA than your current residence, the flat rate moving expense is available.
Third, management is requires that you provide two forms of the required proof of relocation within sixty (60) days after the effective date of your transfer in order to receive the flat rate moving expense. Management requires two forms of the documentation below:
- Lease or rental agreement
- Mortgage or rental payment receipt
- Insurance documents, like homeowner’s or renter’s insurance policy
- Driver’s license, State ID
- Mail from the Department of Motor Vehicles with your address listed
- Official school documents, including an enrollment form or a school ID
- Utility bill (including any public utility like a gas, electricity, or water bill) or confirmation of utility service (including a utility hook-up or work order)
- Statement from a bank or financial institution with the address listed
- U.S. Postal Service change of address confirmation letter
- Moving company contract or receipt with your address listed
- Voter registration card with your name and address listed
Finally, if you need the flat rate moving expense before your move, please contact your base manager. Section 5.B.2. of the contract provides that the flat rate moving expense can be provided to you in advance. Please note that the company will not be able to provide you with a cash voucher (the funds will be directly deposited). In addition, flat rate expenses are now taxable under changes in tax laws.
AFA’s position is that you should not need to provide proof of relocation. We hope this information provides additional clarity regarding flat rate moving expenses for those of you who will be able to provide the company-required documentation, while we work through the grievance process for those who will not be able to provide relocation documentation.
If you are unable to provide the company requested documentation:
- Document all interactions with management regarding your denial of the Flat Rate moving expense
- Email the SEA Domicile Negotiating Committee at sea@afahawaiian.org so we may track any potential grievants.
Moving Expenses – Tax Clarification
Actual Moving Expenses
For moving expenses that are reimbursed with actual receipts (actual moving expenses and settling expenses), the company will gross up the payment. This means that the company will be increase the gross payment to cover the taxes owed, to ensuring the Flight Attendant receives the intended reimbursement amount.
Flat Rate Moving Expenses
Lump sum payments (flat rate moving expense and new hire settling expense) will be taxed similarly to bonus wages and will not be grossed up.
For any questions regarding your specific tax situation, please consult your tax advisor or another qualified financial professional.
Other Information
Pet Moving Expenses
The company will reimburse reasonable expenses associated with moving your pet, including the required pet health certificate. If your pet is unable to travel in the cabin or in the baggage compartment and may require specialized handling, please reach out to your duty manager for next steps.
Cargo Information
If you wish to ship your household goods by cargo, you may do so on a space available basis on company aircraft. You will need to complete an SP-28 form, available through Alaska Cargo. Please call 1-800-225-2752 or cargo.capacity@hawaiianair.com for more information.
SEA LOA Resources
If you have any questions or concerns, please contact your local leadership or email the SEA Domicile Negotiating Committee at sea@afahawaiian.org.
