The settlement will protect teacher's health care and pensions and establishes, for the first time, a program to control the growth of class sizes.
Civil rights groups organized the boycott and demonstration against segregated schools and inadequate resources for black students.
Teachers in the small suburban community of Reynoldsburg, Ohio, returned to the picket line for their second week of striking.
An energized resistance to ongoing attacks on education was on display at this year's American Federation of Teachers national convention in Los Angeles.
Teachers heard the iconic leader of the Moral Monday movement in North Carolina characterize them as part of a movement fighting for the very soul of the nation.
"Enough is enough. Teachers are evaluated and their future livelihoods are linked to that. And when they fall short, they should have a chance to improve."
Several Chicagoans have stolen the show at the AFT's national convention that runs through today at the Los Angeles Convention Center.
Teach Great, a coalition backed by billionaire Rex Sinquefield, is funding the ballot initiative.
"We are not letting anybody divide the unions of the Connecticut AFL-CIO!" exclaimed Randi Weingarten to a standing ovation and loud applause.
The 9-0 ruling cheered the NEA, whose Alabama affiliate - the largest and most-influential union in the state - provided the attorneys for whistleblower Edward Lane in lower court arguments.