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You no doubt have heard that on August 20, a federal judge in the Northern District of Texas set aside the Rule issued by the Federal Trade Commission that sought to ban virtually all noncompetition agreements as unfair methods of competition. Judge Ada Brown found that the FTC exceeded its statutory authority in promulgating the Rule and that the Rule itself was “arbitrary and capricious,” meaning that it was not reasonable or reasonably explained.
You no doubt have heard that on August 20, a federal judge in the Northern District of Texas set aside the Rule issued by the Federal Trade Commission that sought to ban virtually all noncompetition agreements as unfair methods of competition. Judge Ada Brown found that the FTC exceeded its statutory authority in promulgating the Rule and that the Rule itself was “arbitrary and capricious,” meaning that it was not reasonable or reasonably explained.
Our journey starts with a sandwich. In 2014, a Jimmy John’s employee leaked a copy of a noncompete agreement that the Sandwich of Sandwiches™ chain required employees at all levels (including store-level employees, such as sandwich makers and delivery drivers) to sign.
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