U.S. Supreme Court: State Court Should not have Ruled on Validity of Noncompete Clause; Issue Was for Arbitrator
1 min read
Nov 27, 2012
The U.S. Supreme Court held that the Oklahoma Supreme Court erroneously struck down a noncompete agreement, declaring it invalid under state law. The problem with the state court's decision, however, was that there was an arbitration agreement in the employer's employment agreements; thus, the U.S. Supreme Court found that the state court should have allowed an arbitrator to determine whether the non-compete was valid or not.
This case presents two very important employment law topics which seem to be at the center of many employment disputes these days: arbitration agreements and non-compete clauses. State law and federal law in these areas don't always work together to bring about the same result. It is therefore important that employers work closely with counsel to ensure that these types of agreements comply with the applicable laws and that they will be able to be enforced if and when challenged.
For more information read Nitro-Lift Technologies, LLC v. Eddie Lee Howard, et al.
Topics
Featured Insights

Event
Mar 3 – 5, 2026
25th Annual Legal Malpractice & Risk Management (LMRM) Conference

Press Release
Feb 13, 2026
Hinshaw Team Wins Appeal in Criminal Indictment of Waukegan City Clerk Janet Kilkelly

Press Release
Feb 10, 2026
Hinshaw Trial Team Secures $0 Defense Verdict in $15 Million Auto Accident Trial

Press Release
Feb 4, 2026
Hinshaw Celebrates 17 Consecutive Years of Being Named an Equality 100 Award Winner

Press Release
Feb 5, 2026
Hinshaw Legal Team Secures Directed Verdict in Florida Equine Fraud Case

Press Release
Feb 2, 2026
Hinshaw Welcomes 16 Attorneys in Seven Offices and Announces Opening of a Cleveland Office

Press Release
Jan 20, 2026
Hinshaw Attorneys Named to the LCLD 2026 Fellowship Class and 2026 Pathfinder Program

Press Release
Jan 15, 2026
Hinshaw Client Secures a Complete Jury Verdict in Fraudulent Misrepresentation Horse Sale Case

Press Release
Jan 6, 2026
Hinshaw Adds Four-Member Consumer Financial Services Team in DC and Florida



