The Nevada Supreme Court ruled that the arbitration clause in the NFL Constitution does not apply to Gruden as a former employee.
Gruden was the Raiders' head coach when the team moved in 2020 to Las Vegas from Oakland, California. He left the team in November 2021.
Gruden resigned as coach of the Raiders in October with more than six seasons remaining on his 10-year, $100 million contract.
The suit was filed in district court in Clark County, Nevada, on Thursday, exactly a month after Gruden resigned as Raiders coach following the publication of his emails by the Wall Street Journal and New York Times.
The Oakland Raiders have hired former NFL Network draft analyst Mike Mayock as their new general manager.
The Oakland Raiders officially announced Jon Gruden as their new head coach on Tuesday. "I'm all in," said Gruden at a press conference.