A federal judge just overturned the FTC’s ban on non-competes.

On September 4, a new Federal Trade Commission (FTC) rule went into effect that would ban noncompete clauses. America was weeks away from a world in which no employer could forbid employees from working for a competitor, but that didn’t happen. On Tuesday, a federal judge blocked the ban.

The FTC has been studying noncompetes for years, first proposing a rule against them in 2023 and announcing a formal ban in April.

“Non-compete clauses keep wages low, stifle new ideas, and rob the American economy of its momentum, including the more than 8,500 new startups that will be created in the year following a non-compete ban,” FTC Chairwoman Lina M. Khan said at the time. “The FTC’s final rule banning non-competes will give Americans the freedom to seek a new job, start a new business, or bring a new idea to market.”

The rule would go into effect 120 days after it was added to the Federal Register and would invalidate existing noncompetes. The U.S. Chamber of Commerce was aggressive about the ban and promised to pursue legal action.

The Chamber found willing plaintiffs in Texas, where Judge Ada Brown of the United States District Court for the Northern District of Texas ruled in its favor.

“The court vacates the noncompete rule … and the rule will not be enforced or take effect on or after September 4, 2024,” Brown said in her brief ruling.

The chamber hailed it as a victory for business owners.

“This decision is a significant victory for the Chamber in the fight against government micromanagement of business decisions. The FTC’s blanket ban on noncompete agreements was an unlawful expansion of authority that would have put American workers, businesses, and our economy at a competitive disadvantage,” the Chamber of Commerce said in a statement on its website. “We remain committed to holding the FTC — and all agencies — accountable to upholding the rule of law, ensuring that American workers and businesses can thrive.”

The FTC said it may appeal the ruling. “We are disappointed with Judge Brown’s decision and will continue to fight to stop noncompetes that restrict the economic freedom of hard-working Americans, stifle economic growth, limit innovation, and drive down wages. We are seriously considering a potential appeal,” the FTC told the Verge.