A federal judge has ruled in favor of the Federal Trade Commission’s non-compete ruling, saying it fell within the agency’s authority.

The FTC ruled in April that noncompetes are detrimental to the US economy and, with few exceptions, would be banned.

“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” said FTC Chair Lina M. Khan at the time. “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”

The ruling was quickly challenged, with a federal judge in Texas issuing a preliminary injunction barring the FTC from enforcing the ruling while the court considered the merit of it. A final ruling by the US District Court for the Northern District of Texas is expected in August.

In the meantime, however, The Hill reports that US District Judge Kelley Hodge has backed the FTC’s decision, saying the agency has the authority to make such a ruling, thanks to the 1914 Federal Trade Commission Act.

“The Court finds Plaintiff has failed to establish a reasonable likelihood that it will succeed on the merits of its claims that the FTC lacks substantive rulemaking authority under its enabling statute, that the FTC exceeded its authority, and that Congress unconstitutionally delegated legislative power to the FTC,” Hodge wrote in her opinion.

FTC spokesperson Douglas Farrar said in a statement to The Hill that “the judge’s decision fully vindicates that precedent and the plain text of the FTC Act clearly provide us rulemaking authority to ban noncompete clauses, which harm competition by inhibiting workers’ freedom and mobility while stunting economic growth.”