A federal judge in Texas has temporarily blocked a Federal Trade Commission rule banning noncompete agreements, a move that has been strongly opposed by business groups. Judge Ada Brown found that the FTC lacked the authority to issue the rule, which would make it illegal for employers to include noncompete agreements in workers' contracts. This ruling, limited to the plaintiffs, delays the rule's effective date until a decision on the case's merits is reached by August 30. Noncompete agreements impact millions of workers across various industries, with some studies suggesting that one in five employees are bound by such agreements. The FTC argues that noncompetes suppress wages and hinder labor markets, while business groups see them as essential to protecting proprietary information. The Chamber of Commerce hailed the ruling as a victory against government overreach, while the FTC is reviewing its next steps.