Kroger filed a federal lawsuit Monday claiming the Federal Trade Commission violated the company’s constitutional rights by challenging its proposed merger with Albertsons outside of federal court proceedings.
Judge Ada Brown of the U.S. District Court for the Northern District of Texas found that the FTC exceeded its authority with the noncompete ban and that the rule was arbitrary and capricious.
High interest rates are still impacting the M&A space, but there’s hope on the horizon. Labor and employment attorneys are working to figure out what the new noncompete normal means for employers.
Non-compete agreements have been in the headlines in the weeks since President Joe Biden encouraged the Federal Trade Commission to ban or limit non-compete clauses and other agreements that “may unfairly limit worker mobility.”
