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Tex Parte Blog


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September 05, 2007

Snack salesman sues Frito-Lay

Ted Young, a “retail route salesman” in the Austin area for Plano-based Frito-Lay Corp., had 10 years of vested Frito-Lay stock options; then, he was fired for refusing an order to report to work by 5 a.m. to begin his route, according to a suit Young filed on Aug. 30 in the U.S. District Court for the Western District of Texas. In his suit, Young maintains that he was fired for allegedly refusing to falsify his time sheet and report less overtime than he actually worked. But Young’s firing was just one of his problems. Following Young’s termination, 90 days passed without him taking action, which resulted in the forfeiture of his stock options, the suit alleges. Young alleges that the company’s failure to give him notice of the potential forfeiture of his stock options violated the Employee Retirement Income Security Act’s notice requirements. Young also alleges that Frito-Lay erred by allegedly not notifying him of his right to continuing health-care coverage, known as COBRA coverage, following his termination, resulting in his having to pay $15,000 in medical expenses “shortly after his termination” due to a detached retina and cataract, which rendered him legally blind.
-- Jonathan Fox

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