A tribal-owned casino in California violated federal labor law by meddling with a union's recruitment activity, a federal appeals court said Thursday in a dispute testing Native American sovereignty and the reach of the National Labor Relations Act.

The U.S. Court of Appeals for the Ninth Circuit upheld a National Labor Relations Board decision that found San Diego County-based Casino Pauma engaged in unfair labor practices when it halted union organizing in the front of its property. The three-judge panel concluded the casino was subject to the National Labor Relations Act, or NLRA, and that the federal board has the power to enforce it.

“Although the NLRA is ambiguous as to its application to tribal employers, the board's determination that such employers are covered by the act is a 'reasonably defensible' interpretation of the NLRA,” Judge Marsha Berzon wrote for the unanimous panel.

Casino Pauma, pointing to its status as a tribally owned business on tribal land, argued the board misinterpreted the NLRA. The Pauma Band of Mission Indians, which owns the casino, employs about 462 people, five of whom are members of the tribe. Collective bargaining can differ for tribal casinos, but the panel said federal laws apply.

The casino's attorneys previously said the board's decision represented a “seismic shift” in how it operates under federal law. Cheryl Ann Williams and Kevin Cochrane of William & Cochrane, who represented the tribe, were not immediately reached for comment Thursday. Williams argued for Casino Pauma in November.

Four federally recognized tribes in Montana and Washington state filed a friend-of-the-court brief backing Casino Pauma. “As government employers they have a powerful interest in maintaining authority to govern their own communities and those who work for their governments,” according to the brief, filed by Sonosky, Chambers, Sachse, Endreson & Perry.

The Casino Pauma dispute arose when casino employees distributed union leaflets to customers at the casino's front entrance. Labor law protects union organizing in work or guest areas. Employees were disciplined for the activity, the complaint against the casino states.

Unite Here International Union, which began organizing at Casino Pauma in 2013, applauded the court's decision.

“The NLRA provides essential workplace protections that would leave tribal gaming enterprises critically vulnerable if the tribal-owned enterprise lobby had succeeded in stripping them away,” the union statement said. “Unite Here is thrilled that the courts have upheld the rights of all American workers and will continue organizing and winning for all hospitality workers, no matter who their employer is.”


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