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

Consumer Crossroads: Where Financial Services and Litigation Intersect
Jul 30, 2026
Should Text Messages be Considered “Calls” Under the TCPA? The Seventh Circuit Says No

Healthcare Alert
Jul 30, 2026
California Courts Sharply Curtail the MICRA Damages Cap in Nursing Home Litigation

Insights for Insurers Alert
Jul 30, 2026
Analyzing a Couple of Cases Involving Exclusions in D&O Policies

In The News
Jul 29, 2026
Hinshaw Authors Contribute Two Articles in Latest Edition of the CCFL Quarterly Report

Webinar
Jul 28, 2026
Cathy Mulrow-Peattie and Sabrina Janeiro Present on Legal AI Technology

In The News
Jul 27, 2026
Scott Seaman Discusses How the Insurance Industry Contributed to the 2026 FIFA World Cup

Privacy, Cyber & AI Decoded Alert
Jul 27, 2026
Compliance Guidance for the New Vermont Data Privacy and Online Surveillance Act (VDPOSA)

Healthcare Alert
Jul 24, 2026
Q&A: Right to Electronic Monitoring Extended to Illinois Assisted and Shared Living Facilities

Press Release
Jul 23, 2026
Insurance Partner Christophe Burusco Joins Hinshaw in Los Angeles

In The News
Jul 16, 2026
Jennifer Driscoll Anticipates Epic Battle Between “Titans of the Antitrust Bar”

Press Release
Jul 15, 2026
Two Hinshaw Partners Recognized in Minnesota Monthly's 2026 Top Lawyers in Minnesota

