Perry v. Thomas
482 U.S. 483, 107 S. Ct. 2520, 96 L. Ed. 2d 426 (1987)
Supreme Court of the United States · June 15, 1987
What the court decided
The Federal Arbitration Act preempts a California law that let wage-collection suits proceed in court regardless of an agreement to arbitrate. A securities salesman's agreement to arbitrate, made through his industry registration form, was enforceable against his commission claims. State law may be used to judge an arbitration agreement only if it applies to contracts generally.
Who won
The employer's side won. The Supreme Court reversed the California courts' refusal to compel arbitration and sent the case back.
Why it matters for workers
If you signed an industry registration or employment form with an arbitration clause, a state rule favoring wage suits in court will usually not get you out of it.
Key passage: 482 U.S. 483 at 490-92.
Read the decision (PDF) Marked with official reporter pages for citation.
Source of the text: Library of Congress (official United States Reports, bound volume 482) — https://tile.loc.gov/storage-services/service/ll/usrep/usrep482/usrep482483/usrep482483.pdf. This page summarizes the decision in plain language; the court’s own words are in the PDF above.