Texas judge temporarily blocks ban on non-compete agreements for workers

State of play: The preliminary ruling issued Wednesday will delay the effectiveness of the noncompete ban while the court considers the case. The judge found that the plaintiff, a Dallas tax services firm that sued the FTC, would more than likely prevail.

• The commission overstepped because the FTC Act doesn't "expressly grant the [FTC] authority to promulgate substantive rules regarding unfair methods of competition," the judge said.

Catch up quick: In April, the commission voted 3-2 to ban noncompete agreements, which prevent workers from taking positions with competitors for a period of time after they leave a job. The ban was set to take effect on Sept. 4.

• The Chamber of Commerce, which joined the plaintiffs in this lawsuit along with the Business Roundtable and the Texas Association of Business, had warned even before the rule was finalized that it would file suit.

What's next: The court is expected to issue is final decision by Aug. 30, after which the case will likely continue through the judicial system via appeals.

• Other lawsuits challenging the FTC's ban are also pending.

Go deeper: The FTC votes to ban employment noncompetes