Wyatt Employment Law Report

U.S. Supreme Court Vacates State Court Decision That Had Refused to Allow Arbitration of Dispute Over a Non-Competition Agreement

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By Edwin S. Hopson

The U.S. Supreme Court has just issued a decision re-affirming the supremacy of the Federal Arbitration Act over state laws purporting to limit arbitration.  In Nitro-Lift Technologies v. Eddie Lee Howard, et al., 568 U.S. ____ (2012), the court reversed the Oklahoma Supreme Court that had taken the position that a state law limiting the enforcement of non-competition agreements entered into by employers and their employees controlled as a matter of state law. The Oklahoma court had refused to allow the matter to be heard by an arbitrator as called for in the contract between Nitro-Lift and two of its employees who left to go to work for a competitor. The U.S. Supreme Court, in a Per Curiam opinion, vacated the Oklahoma Supreme Court decision and remanded the case to the state court with instructions to allow the issue of whether the non-competition agreement had been violated by the former employees to be heard by an arbitrator.

Leave a reply. Please note that although this blog may be helpful in informing clients and others who have an interest in information privacy and security, it is not intended to be legal advice. The information on this blog also should not be relied upon to form an attorney-client relationship.

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