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A federal judge has blocked the Federal Trade Commission\u2019s ban on noncompete agreements<\/a> that make it difficult for workers to join their employers\u2019 rivals or launch competing businesses. The ruling prevents the FTC\u2019s ban on noncompete agreements from taking effect on September 4th, though the agency could still appeal the decision.<\/p>\n<\/div>\n On Tuesday, US District Judge Ada Brown in Dallas, Texas ruled that<\/a> the antitrust agency exceeded its statutory authority to ban practices related to unfair methods of competition, saying the noncompete agreements ban is \u201cunreasonably overbroad without a reasonable explanation,\u201d and would \u201ccause irreparable harm.\u201d Brown\u2019s decision now stops the FTC from blocking noncompetes nationwide after initially delaying the ban with a preliminary injunction<\/a> in July.<\/p>\n<\/div>\n \u201cWe are seriously considering a potential appeal\u201d<\/p>\n<\/div>\n<\/div>\n \u201cWe are disappointed by Judge Brown\u2019s decision and will keep fighting to stop noncompetes that restrict the economic liberty of hardworking Americans, hamper economic growth, limit innovation, and depress wages,\u201d FTC spokesperson Victoria Graham said in a statement to The Verge. <\/em>\u201dWe are seriously considering a potential appeal.\u201d<\/p>\n<\/div>\n If the FTC does push ahead with an appeal, it would go to the Fifth Circuit Court of Appeals to be heard. Appeals on district court decisions are often a lengthy process, with the FTC\u2019s appeal against Microsoft\u2019s Activision Blizzard acquisition still pending a result<\/a>. In the meantime, the FTC will have to challenge noncompetes via case-by-case enforcement actions.<\/p>\n<\/div>\n