Legal Question in Business Law in Mississippi

Can company require frequent flyer miles to be used

Our company purchased and is continuing to purchase flights for employees. After 8 flights are purchased, a free flight is issued to the employee. Can the company make the employee use that free flight toward business travel because the company paid for all of the flights?

We are wanting to make a policy that states that all employees must sign up for the rewards program so that we can earn free flights for paying for them. Is this legal?

Thanks...


Asked on 5/14/03, 11:44 am

3 Answers from Attorneys

Jeffrey Padgett Padgett Law Firm, pllc

Re: Can company require frequent flyer miles to be used

Seems to me that the Company bought the tickets, therefore the company would be the owner of the free tickets, and could do whatever they liked with them. (ie. use them to send employees on their trips)

Of course, the company may want to give the free tickets to the employee as a perk. If this is the case, you will also want to talk to your accountant and see the tax benefits/deductions of this.

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Answered on 5/14/03, 11:54 am
Albert Pettigrew Law Offices Ph 228-875-8736

Re: Can company require frequent flyer miles to be used

The government limited how its employees were to use such rights for a while. However, it seems that last year Congress decided the value of such rights wasn't worth the bother of having to account for and manage them, considering airline unwillingness to separately account for points and to not recognize an employer's interest in the points. Also, from a management perspective, the restrictions produced significant chaffing on employee nerves.

It seems that the employer can control the employee's use of rights represented by the points solely as a matter of contract with the employee. Maybe the employer has a beneficial ownership conditioned on the employment relationship. However, since the points are not assignable, the employer could have no legal ownership of the points, and if the employee uses the rights for his own purposes the employer could not charge him with theft. At most,the employer would a claim against the employee for breach of contract or breach or maybe breach of a fiduciary relationship.

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Answered on 5/14/03, 12:42 pm
Albert Pettigrew Law Offices Ph 228-875-8736

Re: Can company require frequent flyer miles to be used

The government limited how its employees were to use such rights for a while. However, it seems that last year Congress decided the value of such rights wasn't worth the bother of having to account for and manage them, considering airline unwillingness to separately account for points and to not recognize an employer's interest in the points. Also, from a management perspective, the restrictions produced significant chaffing of employee nerves.

It seems that the employer can control the employee's use of rights represented by the points solely as a matter of contract with the employee. Maybe the employer has a beneficial ownership. However, since the points are not assignable, the employer could have no legal ownership of the points, and if the employee uses the rights for his own purposes the employer could not charge him with theft. At most,the employer would a claim against the employee for breach of contract or breach of a fiduciary interest.

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Answered on 5/14/03, 12:43 pm


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