This section contains the nature of the case and procedural background.

P was employed by D. On December 5, 1984, she notified D that she had been injured in the course of her employment and requested compensation for her medical expenses pursuant to the Illinois Workers' Compensation Act. On December 11, 1984, D discharged her for filing a 'false worker's compensation claim.' The union representing P filed a grievance pursuant to the collective-bargaining agreement. The agreement protected those employees, including P, from discharge except for 'proper' or 'just' cause, and established a procedure for the arbitration of grievances. An arbitrator ruled in P's favor and ordered D to reinstate her with full backpay. On July 9, 1985, P commenced this action against D by filing a complaint in the Illinois Circuit Court for Williamson County, alleging that she had been discharged for exercising her rights under the Illinois workers' compensation laws. D removed the case to the Federal District Court on the basis of diversity of citizenship and then filed a motion praying that the court either dismiss the case on pre-emption grounds or stay further proceedings pending the completion of the arbitration. The District Court dismissed the complaint. It concluded that the 'claim for retaliatory discharge is 'inextricably intertwined' with the collective bargaining provision prohibiting wrongful discharge or discharge without just cause' and that allowing the state-law action to proceed would undermine the arbitration procedures set forth in the parties' contract. The Court of Appeals agreed that the state-law claim was pre-empted by § 301. P appealed.

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