Texas judge temporarily blocks government ban on non-compete agreements

A federal judge in Texas has delayed a ban on non-compete clauses for employees.

The judge wrote the court plans to have a ruling on the merits of the action by the end of August.

The ban would prevent employers from imposing non-compete deals for most already-active agreements.

Supporters of the ban say it would give workers more freedom and boost wages, but critics say otherwise.

"It's clear that the freedom to leave your job and take another job is fundamental to a free and fair economy," said Rebecca Slaughter, with the Federal Trade Commission.

"Small businesses, start-ups are gonna benefit tremendously for not having to work around noncompetes," said Jordan Cain, co-founder of Ferrcann Transport Group.

The ban, which was scheduled to take effect in September, was approved by the FTC in April.

However, less than 24 hours after that, the agency was sued by the U.S. Chamber of Commerce and several businesses, including a Texas-based tax services and software provider.

The FTC says roughly 20% of all U.S. workers have a non-compete clause in their current jobs.

Officials say this hinders their chances of getting a better employment opportunity elsewhere.

"We will keep fighting to free hardworking Americans from unlawful noncompetes," the FTC said after the ruling.

CNN and ABC News contributed to this report.