Employers and employees often enter into non-compete agreements that limit an employees ability to compete with an employer during, or after, the employees employment. These agreements are often the subject of intense litigation and their validity, and enforceability, varies from state to state. Many of these agreements also have arbitration provisions in them which require that any dispute under the agreement be decided by a private arbitrator instead of litigated in court. In Nitro-Lift Technologies, LLC v. Howard, decided by the Supreme Court of the United States on November 26, 2012, the Court made clear that an arbitration provision, enforceable by federal law, will be given effect even in cases where that means a dispute concerning a non-compete provision disfavored by state law will be kept out of the state courts.
Author: US Supreme Court from US Supreme Court