Tribal Labor Sovereignty Act moves forward after markup session

capitol hill, congress

By Kim Morrison, World Casino News

H.R.511 gains momentum as members of the House Committee on Education and the Workforce attend the July 22, 2015 markup session which was packed with members of the National Indian Gaming Association in Washington, D.C., for a legislative summit.

The Act which exempts tribes and their casinos from the National Labor Relations Act (NLRA), the Tribal Labor Sovereignty Act was passed on Wednesday at the short markup session on Capitol Hill.

According to the Chairman of the Committee, Rep. John Kline (R-Minnesota) who introduced the bill, “it’s not about big business versus big labor and it’s not about Republican versus Democrat.”

Kline went on to add that “the bill we are considering today is about whether Native Americans should be free to govern employee-employer relations in a way they determine is best for their workplace.”

In what Rep. Todd Rokita (R-Indiana) described as a “bipartisan, commonsense proposal that will provide legal certainty to the Native American community,” the Act would exempt tribes and their casinos from the National Labor Relations Act (NLRA), and prohibit the National Labor Relations Board from asserting jurisdiction at those businesses.

Rokita also went on to state that the Act would give authority back to tribal leaders and end the National Labor Review Board’s (NLRB) overreach, and restore the standard that was in place long before the National Labor Relations Board made the misguided decision to change course. An amendment in the nature of a substitute to clarify that tribal governments are also exempt from the NLRA, was offered by Rokita.

Opposition to the Sovereignty Act was voiced by the only Democrats present, Rep. Mark Pocan (D-Wisconsin), Rep. Joe Courtney (D-Connecticut) and Rep. Ruben Hinojosa (D-Texas), who accused Republicans and their allies of using tribal sovereignty as a smokescreen to attack the NLRB.

Representative Pocan accused proponents of the bill, such as the U.S. Chamber of Commerce, of endorsing the bill in an attempt to help destroy the NLRB rather than support for the sovereignty of the tribes.

The three also noted that most employees of tribal casinos are non-Indians and argued that the bill will degrade labor standards Indian Country.

Although it hasn’t been taken up by the full Senate, on June 10th the Senate Indian Affairs Committee approved S.248, its version of the bill which is gaining traction among lawmakers from both parties.

At that legislative summit which opened Tuesday on Capitol Hill (hosted by the National Indian Gaming Association (NIGA)), Sen. Heidi Heitkamp (D-North Dakota) stressed that every conversation about gaming should begin by stating that gaming is not something that the federal government authorized you to do, but a sovereign right.

She added that, “If the Indian Gaming Regulatory Act went away tomorrow, you would still be able to conduct gaming,”

Exemption from the NLRA has been sought after by the tribes ever since a 2004 ruling in which the NLRB asserted jurisdiction over Indian Country for the first time in decades, but efforts to address the issue ran into serious opposition from Democrats and their labor union allies at that time.

Since that 2004 ruling, tribes have won support from key Democrats by pitching the issue as one of parity with other governments, and with Republicans in control of the House and Senate, the bill has moved quickly in the 114th Congress.

The bill would resolve uncertainties like the one that arose in early June when the NLRB declined to assert jurisdiction at the WinStar World Casino and Resort, a casino owned by the Chickasaw Nation of Oklahoma, citing the tribe’s treaty-protected right to self-governance.

Less than a week later, the 6th Circuit Court of Appeals backed the NLRB’s jurisdiction over the Little River Casino and Resort, a casino owned by the Little River Band of Ottawa Indians in Michigan, and three weeks later, expressing serious doubts about the application of the NLRA in Indian Country, the same court rejected the treaty claims of the Saginaw Chippewa Tribe, also in Michigan.

The U.S. federal law that establishes the jurisdictional framework that governs Indian gaming, the Indian Gaming Regulatory Act (IGRA), has been a source of extensive controversy and litigation since it was passed in 1988.

Bills Propose To Reverse National Labor Relations Board Jurisdiction Over Indian Tribal Governments

By Patrick Sulivan, Dickinson Wright PLLC, Gaming Legal News

The National Labor Relations Act (“NLRA”) was enacted by Congress in 1935. The Act, also known as the Wagner Act after its champion, New York Senator Robert F. Wagner, passed the Senate in May 1935, the House in June 1935, and was signed into law by President Roosevelt on July 5, 1935. The Act’s purpose was to encourage workers’ collective bargaining rights and protect them from retribution for organizing unions. The Act created the National Labor Relations Board (“NLRB”), a new agency, to enforce the new policy.

Despite the fact that Congress had enacted sweeping pro-Indian legislation in the form of the Indian Reorganization Act of 1934 in the previous year, the NLRA did not mention Indian tribes at any point. Until 2004, Indian tribes and tribally owned businesses were generally assumed to be beyond the jurisdiction of the labor legislation with few exceptions.

In 2004, the NLRB reversed that assumption with a ruling that it had jurisdiction over the San Manuel Casino pursuant to the NLRA. The matter originated from a complaint filed with the NLRB by UNITE HERE!, a large California hotel and restaurant workers’ union, which complained that the Tribe had allowed a competing union, the Communication Workers of America, access to the casino to organize its employees while denying UNITE HERE! representatives access to the site. The Tribe moved to dismiss the proceeding for lack of jurisdiction.

The NLRB held that it had jurisdiction, reasoning that (1) the NLRA applies to tribal governments by its terms, despite any express reference to Indian tribes, (2) the legislative history of the NLRA did not suggest a tribal exception, and (3) federal Indian policy did not preclude the application for the NLRA to the commercial activities of tribal governments. The board found an unfair labor practice and ordered the Tribe to allow UNITE HERE! access to the casino workers.

The Tribe appealed the ruling to the United States Court of Appeals for the District of Columbia Circuit. UNITE HERE! intervened as a defendant. The Court determined that the question of the NLRA’s application to Indian tribes turned on two related questions: (1) whether application of the NLRA to San Manuel’s casino would violate federal Indian law by impinging upon protected tribal sovereignty, and (2) whether the term “employer” in the NLRA reasonably encompasses Indian tribal governments operating commercial enterprises.

In resolving these questions, the D.C. Circuit recognized the tension between the Supreme Court’s 1960 holding in Federal Power Commission v. Tuscarora Indian Nation, that “a general statute in terms applying to all persons includes Indians and their property interests,” and other Supreme Court precedents favoring tribal sovereignty, including the 1978 Santa Clara Pueblo v. Martinez holding that any impairment of tribal sovereignty required a clear expression of Congressional intent in the statutory text. The Court resolved this tension by stating that “if the general law relates only to the extra-governmental activities of the tribe, and in particular activities involving non-Indians, then application of the law might not impinge on tribal sovereignty.” Ultimately, the Court held that the impact of NLRB jurisdiction on the Tribe’s sovereignty was “negligible in this context, as the Tribe’s activity was primarily commercial,” that the Board’s decision as to the scope of the term “employer” in the NLRA was permissible, and affirmed the Board’s jurisdiction over the casino.

More recently, in Michigan, the Saginaw Chippewa Indian Tribe has appealed an NLRB ruling that the Tribe violated the NLRA. In October 2014, the NLRB ordered the Saginaw Chippewa Tribe to reinstate an employee allegedly fired for union organizing at the Tribe’s casino. The Tribe appealed to the Sixth Circuit Court of Appeals. If that Court rules that the NLRB lacks jurisdiction over the Tribe, that decision would create a circuit split and likely end up before the United States Supreme Court.

The NLRB website states “The Board asserts jurisdiction over the commercial enterprises owned and operated by Indian tribes, even if they are located on a tribal reservation. But the Board does not assert jurisdiction over tribal enterprises that carry out traditional tribal or governmental functions.”

In January, Kansas Republican Senator Jerry Moran introduced S.248, the “Tribal Labor Sovereignty Act of 2015.” The Bill would amend the NLRA to exclude “any enterprise or institution owned and operated by an Indian tribe and located on its Indian lands.” At its February 2015 Executive Council Winter Session, the National Congress of American Indians, the largest Native American policy organization, passed a resolution in support of the bill. A similar bill has been introduced in the House of Representatives. The Senate Indian Affairs Committee will hold a hearing on the bill later this month.

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