Lead Opinion
GIBBONS, J., delivered the opinion of the court in which MERRITT, J., joined, McKEAGUE, J. (pp. 556-65), delivered a separate dissenting opinion.
OPINION
In this case, we are called on to decide whether the National Labor Relations Board may apply the National Labor Relations Act (NLRA), 29 U.S.C. §§ 151-169, to the operation of a casino resort of the Little River Band of Ottawa Indians. The Band’s tribal council enacted an ordinance to regulate employment and labor-organizing activities of its employees, including casino employees, most of whom are not members of the Band. The Board issued an order to the Band to cease and desist from enforcing the provisions that conflict with the NLRA. We hold that because the NLRA applies to the Band’s operation of the casino, the Board had jurisdiction to
I.
The Band is a federally recognized Indian tribe with more than 4,000 enrolled members, most of whom live within or near the Band’s aboriginal lands in the State of Michigan. See Little Traverse Bay Bands of Odawa Indians and the Little River Band of Ottawa Indians Act (the Little Bands Act), 25 U.S.C. § 1300k-2(a). Pursuant to the Little Bands Act and the Indian Reorganization Act, 25 U.S.C. § 476, the Band enacted a constitution and amendments thereto, which have been approved by the Secretary of the Interior. The Band’s constitution vests the Band’s legislative powers in the Tribal Council and grants power to the Tribal Council to operate gaming pursuant to the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. §§ 2701-2721.
Pursuant to the IGRA, the Band entered into a compact with the State of Michigan to conduct class III gaming activities, as defined by 25 U.S.C. § 2703(8), on the Band’s trust lands in Manistee, Michigan. The gross revenues from the Little River Casino Resort, a tribally-chartered, subordinate organization of the Band, exceed $20 million annually. According to the IGRA, the net revenues from the casino may be used only to fund the Band’s tribal governmental operations or programs, to provide for the general welfare of the Band and its members, to promote tribal economic development, to donate to charitable organizations, or to help support the operations of local government. See 25 U.S.C. § 2710(b)(2)(B). The revenues from the casino provide over fifty percent of the Band’s total budget.
The record in this case shows that the casino has 905 employees—107 of whom are enrolled members of the Band, 27 of whom are members of other Indian tribes, and 771 of whom are neither members of the Band nor of any other Indian tribe. The majority of casino employees live outside the Band’s trust lands, and the majority of the casino’s customers are not members of Indian tribes. Apart from the casino, 245 employees currently work for the Band’s other governmental departments and subordinate organizations. Of this number, 108 are members of the Band and 137 are not members of the Band. In sum, of the Band’s 1,150 total employees, 908 are not members of the Band.
In 2005, the Tribal Council enacted the Band’s Fair Employment Practices Code (FEPC), which it amended most recently on July 28, 2010. In pertinent part, the FEPC contains Article XVI, “Labor Organizations and Collective Bargaining,” and Article XVII, “Integrity of Fair Employment Practices Code,” which regulate labor-organizing activities and collective bargaining. These articles apply to casino employees and labor organizations representing or seeking to represent casino employees. As amended, Article XVI, inter alia, grants to the Band the authority to determine the terms and conditions under which collective bargaining may or may not occur; prohibits strikes, work stoppage, or slowdown by the Band’s employees and, specifically, by casino employees; prohibits the encouragement and support by labor organizations of employee strikes; prohibits any strike, picketing, boycott, or any other action by a labor organization to induce the Band to enter into an agreement; subjects labor organizations and employees to civil penalties for strike activity; subjects employees to suspension or termination for strike activity; subjects labor organizations to decertification for strike activity; subjects labor organizations to a ban on entry to tribal lands for
On March 28, 2008, the Teamsters, Local No. 406, filed a Charge Against Employer, asserting that the Band committed an unfair labor practice in violation of the NLRA. On December 10, 2010, the Acting General Counsel of the Board filed an unfair labor practice complaint, alleging that the above provisions of Articles XVI and XVII of the FEPC interfere with, restrain, and coerce employees in the exercise of their rights guaranteed by Section 7 of the NLRA, 29 U.S.C. § 157, and therefore violate Section 8(a)(1) of the NLRA, 29 U.S.C. § 158(a)(1). In a proceeding before the Board, the parties stipulated that the only issues for decision were whether the Board has jurisdiction over the Band and, if so, whether the Band violated Section 8(a)(1) of the NLRA, by applying the above provisions of the FEPC. Little River Band of Ottawa Indians Tribal Gov’t, 359 N.L.R.B. No. 84, slip op. at 2 (2013). The only argument the Band presented in its defense was that the Board lacked jurisdiction because the application of the NLRA would impermissi-bly interfere with the Band’s inherent tribal sovereignty to regulate labor relations on its tribal lands.
The Board concluded it had jurisdiction, held that the Band violated the NLRA as alleged, and issued a cease and desist order. Little River, 359 N.L.R.B. No. 84, slip op. at 3-6. In reaching this decision, the Board applied its holding in San Manuel Indian Bingo & Casino,
We heard oral argument in this case on October 8, 2013. The Board subsequently moved to vacate its order, to remand for further consideration in light of the Supreme Court’s decision in NLRB v. Noel Canning, — U.S. —,
The Board then reinitiated this appeal with an application for enforcement of its order. The application focuses our inquiry on the single issue of whether the Board may assert jurisdiction over the Band to enforce the cease and desist order. In deciding this case, we have considered the briefs and arguments from the prior appeal (Nos. 13-1464 and 13-1583).
II.
The NLRA is a statute of general applicability and is silent as to Indian tribes. See 29 U.S.C. §§ 152(l)-(2), 158(a), 160(a). The NLRA prohibits “employers” from engaging in unfair labor practices. 29 U.S.C. § 158(a). The NLRA creates the Board’s jurisdiction, empowering it “to prevent any person from engaging in any unfair labor practice affecting commerce.” 29 U.S.C. § 160(a). The NLRA defines
From one vantage, then, this case is about whether the pertinent statutory terms “employer” and “person,” which trigger the Board’s jurisdiction, encompass Indian tribes. Since Congress has not “directly spoken to the precise issue,” Chevron, U.S.A., Inc. v. Natural Res. Def. Council,
From another angle, however, this case concerns the limits and contours of inherent tribal sovereignty and the proper interpretation of the silence of a generally applicable congressional statute against the background of federal Indian law. The Band submits that under principles of federal Indian law the NLRA, like any other congressional enactment, cannot preempt a tribal government’s exercise of its inherent sovereign authority without a clear expression from Congress. The Board responds that congressional statutes of general applicability that are silent as to Indian tribes, like the NLRA, apply to Indian tribes, unless such application abrogates rights guaranteed by Indian treaties or interferes with exclusive rights of self-governance in purely intramural matters. Central to the argument for its construction, the Board claims that the San Manuel standard follows from judicial opinions expounding federal Indian law and accommodates federal Indian policies. See Little River, 359 N.L.R.B. No. 84, slip op. at 3—4; San Manuel,
From this viewpoint, we find that Chevron does not apply. A reviewing court does not owe Chevron deference to an agency construction if the agency adopts the construction on the basis of a judicial opinion and not on the basis of policy considerations regarding the statute it administers. See, e.g., Akins v. F.E.C.,
III.
A.
We begin by reviewing the law governing the implicit divestiture of tribal sovereignty, which provides an important background when determining whether federal laws of general applicability also apply to Indian tribes absent an express congressional statement. Indian tribes are “distinct, independent political communities.” Plains Commerce Bank v. Long Family Land & Cattle Co.,
Indian tribes retain broad residual power over intramural affairs: they may determine tribal membership, regulate domestic relations among members, prescribe rules of inheritance among members, and punish tribal offenders. Montana v. United States,
The Supreme Court has long been suspicious of tribal authority to . regulate the activities of non-members and is apt to view such power as implicitly divested, even in the absence of congressional action. See Plains Commerce,
Montana charts the contemporary law of implicit divestiture of inherent tribal sovereignty. See
In Hicks and Plains Commerce, the Court further demarcated the bounds on tribal sovereignty to regulate the activities of non-members. Hicks held that a tribe’s inherent sovereignty does not extend to the regulation of state wardens executing a search warrant for evidence of an off-reservation violation of state law.
Further, the Hicks Court diluted the claim that tribal sovereignty to regulate the activities of non-members necessarily flows from the power to exclude outsiders from entering tribal land. The Court denied “that Indian ownership suspends the ‘general proposition’ derived from Oli-phant that ‘the inherent sovereign powers of an Indian tribe do not extend to the activities of non-members of the tribe’ except to the extent ‘necessary to protect tribal self-government or to control internal relations.’ ” Id. at 359,
Similarly, in Plains Commerce, the Court held that a tribal court lacked jurisdiction to adjudicate a discrimination claim concerning a non-Indian bank’s sale of fee land because “regulating the sale of non-Indian fee land” is not related to the sovereign interests of protecting tribal self-government or controlling internal relations. See
Hicks and Plains Commerce demonstrate that the application of the Montana framework is guided by an overarching principle: inherent tribal sovereignty has a core and a periphery. At the periphery, the power to regulate the activities of non-members is constrained, extending only so far as “necessary to protect tribal self-government or to control internal relations.” Montana,
B.
The Supreme Court has anticipated that federal statutes of general applicability may implicitly divest Indian tribes of their sovereign power to regulate the activities of non-members. See Tuscarora,
Our sister circuits have long read Tuscarora for the proposition that a federal statute creating a comprehensive regulatory scheme presumptively applies to Indian tribes. See, e.g., Solis v. Matheson,
We stress that the application of general federal statutes to Indian tribes is presumptive; they do not always apply. See, e.g., Michigan v. Bay Mills Indian Cmty., — U.S. —,
*548 A federal statute of general applicability that is silent on the issue of applicability to Indian tribes will not apply to them if: (1) the law touches exclusive rights of self-governance in purely intramural matters; (2) the application of the law to the tribe would abrogate rights guaranteed by Indian treaties; or (3) there is proof by legislative history or some other means that Congress intended [the law] not to apply to Indians on their reservations.
Id. at 1116 (internal quotations omitted). “In any of these three situations, Congress must expressly apply a statute to Indians before ... it reaches them.” Id. (emphasis original). Because the tribe could not show that the application of OSHA regulations to its commercial farm fell within one of these three exceptions, the court held that OSHA applied. See id. at 1116-18.
Our sister circuits have employed the framework set forth in Coeur d’Alene to conclude that aspects of inherent tribal sovereignty can be implicitly divested by comprehensive federal regulatory schemes that are silent as to Indian tribes. See, e.g., Menominee Tribal Enters. v. Solis,
C.
The Band contends that the Coeur d’Al-ene framework insufficiently protects inherent tribal sovereignty. According to the Band, generally applicable congressional statutes cannot preempt any exercise of a tribal government’s inherent sovereign authority without a clear expression from Congress. We are not persuaded.
The Band principally cites Iowa Mutual Insurance Co. v. LaPlante,
To be sure, each decision declined to read a congressional statute in a way that would undermine central aspects of tribal self-government absent a clear statement that it was Congress’s intent to do so. But these decisions hardly show that every congressional statute of general applicability that would conflict with any tribal regulation of the activities of nonmembers must be accompanied by a clear statement if that federal statute is to apply. We do not even accord the sovereign powers of the several states—which, unlike the sovereign powers of Indian tribes, are constitutionally protected—-with such solicitude. See, e.g., Gade v. Nat’l Solid Wastes Mgmt. Ass’n,
Comprehensive federal regulatory schemes that are silent as to Indian tribes can divest aspects of inherent tribal sovereignty to govern the activities of non-members. We do not doubt that “Indian tribes still possess those aspects of sovereignty not withdrawn by treaty or statute, or by implication as a necessary result of their dependent status.” Wheeler,
For these reasons, we do not agree with the Band’s reliance on NLRB v. Pueblo of San Juan,
The Band also points to the separate canon of construction that ambiguities in a federal statute must be resolved in favor of Indians. See Montana v. Blackfeet Tribe of Indians,
D.
We find that the Coeur d'Alene framework accommodates principles of federal and tribal sovereignty. See Mashantucket Sand & Gravel,
IV.
The NLRA is a generally applicable, comprehensive federal statute. It prohibits “employers” from engaging in unfair labor practices and empowers the Board to prevent such practices. 29 U.S.C. §§ 158(a), 160(a). Congress has said that “[t]his power shall not be affected by any other means of adjustment or prevention that has been or may be established by law, or otherwise.” § 160(a). The Supreme Court “has consistently declared that in passing the [NLRA], Congress intended to and did vest in the Board the fullest jurisdictional breadth constitutionally permissible under the Commerce Clause.” NLRB v. Reliance Fuel Oil Corp.,
The Band cannot show that application of the NLRA to the casino undermines “tribal self-governance in purely intramural matters,” Id, The Band underscores the provisions of Articles XVI and XVII that regulate non-member employee strikes, the Band’s duty to bargain in good faith over the terms and conditions under which the Band’s employees may be tested for alcohol and drug use, and the licensing of non-member labor organizations seeking to organize Band employees. The Band argues that these regulations in particular implicate its “right of self-governance in purely intramural affairs.” Coeur d’Alene,
The tribal self-governance exception is designed to except internal matters such as the conditions of tribal membership, inheritance rules, and domestic relations from the general rule that otherwise applicable federal statutes also apply to Indian tribes. Id. (citing Farris,
In Fond du Lac, the court refused to apply ADEA to an employment discrimination action involving a tribe member, employed by the tribe on the reservation, because the “dispute involvefd] a strictly internal matter.”
The Band responds that Article XVI targets those non-member aetivi
The Band emphasizes that the tribal commercial activity at issue is not a farm, sawmill, or lumber mill, but a sophisticated casino gaming operation, operated in accordance with federal approval under the IGRA, funding approximately fifty percent of the Band’s tribal government. We do not find that the IGRA renders commercial gaming an untouchable aspect of tribal self-governance, leaving the Band to operate gaming enterprises free from all other federal regulations. We recognize that Congress’s explicit goal in enacting the IGRA is “to provide a statutory basis for the operation of gaming by Indian tribes as a means of promoting tribal economic development, self-sufficiency, and strong tribal government.” 25 U.S.C. § 2702(1) (policy statement). Indeed, under the IGRA, the net revenue from the Band’s gaming operations is not to be used for other purposes. See 25 U.S.C. § 2710(b)(2). The IGRA protects gaming as a source of tribal revenue from organized crime and other corrupting influences. 25 U.S.C, § 2702(2)-(3) (policy statement). It does not, however, immunize the operation of Indian commercial gaming enterprises from the application of other generally applicable congressional statutes. See Chickasaw Nation,
We do not read California v. Cabazon Band of Mission Indians,
The Band also argues that because the Board’s exercise of jurisdiction undermines a general enactment of its tribal government, application of the NLRA would undermine its right of self-governance in purely intramural matters. But again, it cannot be the rale that, unlike states, a tribal government may avoid application of a generally applicable federal statute by enacting a regulation governing the activities of non-members and members alike. See Pueblo of San Juan,
B.
The Band submits that there is proof that Congress intended the NLRA not to apply to Indians on their reservations and, hence, this case falls within the third Coeur d’Alene exception. See Coeur d’Alene,
We cannot agree. We recognize that Indian tribes are immune from suit in both state and federal court unless “Congress has authorized the suit or the tribe has waived its immunity.” Kiowa Tribe v. Mfg. Techs., Inc.,
In sum, we find that this ease does not fall within the exceptions to the presumptive applicability of a general statute outlined in Coeur d’Alene. The NLRA does not undermine the Band’s right of self-governance in purely intramural matters, and we find no indication that Congress intended the NLRA not to apply to a tribal government’s operation of tribal gaming, including the tribe’s regulation of the labor-organizing activities of non-member employees.
C.
The NLRA excepts “any State or political subdivision thereof’ from the definition of “employer.” See 29 U.S.C. § 152(2). The Band’s final contention is that, in light of comity principles, we must interpret the NLRA to treat Indian tribes exercising sovereign functions within their reservation and trust lands the same way that the NLRA treats states. But the Band is not a state, and tribal sovereignty and state sovereignty are built on different
V.
The application for enforcement is granted.
Notes
. Merrion also suggests that federal statutes of general applicability may implicitly divest Indian tribes of their sovereign power to regulate the activities of non-members. See Merrion,
Dissenting Opinion
dissenting.
DISSENT
The sheer length of the majority’s opinion, to resolve the single jurisdictional issue before us, betrays its error. Under governing law, the question presented is really quite simple. Not content with the simple answer, the majority strives mightily to justify a different approach. In the process, we contribute to a judicial remaking of the law that is authorized neither by Congress nor the Supreme Court. Because the majority’s decision impinges on tribal sovereignty, encroaches on Congress’s plenary and exclusive authority over Indian affairs, conflicts with Supreme Court precedent, and unwisely creates a circuit split, I respectfully dissent.
I
All agree that Indian tribes are sovereign political entities that retain their sovereignty. All agree that Congress has plenary authority over Indian affairs and that tribal sovereignty is subject to complete defeasance by Congress. All agree that federal law will not be deemed to limit tribal sovereignty absent evidence of congressional intent to do so. All agree that the National Labor Relations Act, the exclusive basis for the National Labor Relations Board’s exercise of jurisdiction in this case, is silent as to Indian tribes. The Board’s order, prohibiting the Little River Band of Ottawa Indians from enforcing its Fair Employment Practices Code, clearly impinges on an exercise of the Band’s tribal sovereignty. No one denies that the record is devoid of evidence of congressional intent, express or implied, to authorize such an interference with tribal sovereignty. The proper inference to be drawn from Congress’s silence, I submit, is that tribal sovereignty is preserved and the Board’s incursion is unauthorized by law.
The majority, however, approves the Board’s adoption of a different way of construing congressional silence, a way that has never been approved by the Supreme Court or applied in any circuit to justify federal intrusion upon tribal sovereignty under the NLRA. In my opinion, under current governing law, the Board’s exercise of jurisdiction is simply beyond its authority, an arrogation of power that Congress has not granted. Hence, the Board’s action not only impinges imper-missibly on tribal sovereignty, but also encroaches on Congress’s exclusive and plenary authority over Indian affairs. By failing to so hold, we neglect our duty to preserve the constitutionally mandated
II
A. The NLRB’s Evolving Approach
The majority recognizes that our review of the Board’s assessment of its jurisdiction is de novo. Chevron deference plays no role. The majority also acknowledges that the NLRA is silent as to Indian tribes and that the Board’s exercise of jurisdiction in this case is premised fundamentally, not on any other act of Congress or governing judicial decision, but on principles effectively announced in its own prior decision in San Manuel Indian Bingo and Casino,
So what changed to justify the NLRB’s new approach? Congress has not amended the NLRA or in any other way signaled its intent to subject Indian tribes to NLRB regulation. Nor has the Supreme Court recognized any such implicit intent. The NLRB “adopted a new approach” and “established a new standard” based on its recognition that some courts had begun to apply other generally applicable federal laws to Indian tribes notwithstanding Congress’s silence. San Manuel,
In Tnscarora, the Federal Power Act, “a complete and comprehensive plan” which by its terms addressed “tribal lands embraced within Indian reservations,” was held to sufficiently express congressional intent to authorize an exercise of eminent domain over land owned by individual Indians or even by a tribe if the land was not “within a reservation.” Id. at 118,
The Tnscarora statement, properly understood, thus offers little authoritative guidance on the present jurisdictional question. Yet, the NLRB noted in San Manuel that the Tnscarora “seed” had germinated in Donovan v. Coeur d A'lene Tribal Farm,
Seventeen years later, the NLRB first invoked this Tuscarorar-Coeur d’Alene approach to justify its assertion of jurisdiction to bar enforcement of a tribal right-to-work law in NLRB v. Pueblo of San Juan,
In 2002, the Tenth Circuit thus squarely rejected the NLRB’s innovative attempt to overrule its own prior precedents based on dictum appearing in a 1960 Supreme Court opinion. Undeterred, the NLRB tried again in San Manuel,
The NLRB’s San Manuel decision was affirmed on appeal; but its rationale was not. San Manuel Indian Bingo and Casino v. NLRB,
The D.C. Circuit thus steered a middle course, departing from established principles of Indian law, but refraining from adopting the Tuscarora-Coeur d’Alene approach. In doing so, the D.C. Circuit did not try to reconcile its ruling with, or distinguish it from, the Tenth Circuit’s Pueblo of San Juan ruling. In fact, it conspicuously avoided any reference to the Tenth Circuit’s analysis. The NLRB thus obtained a favorable result, but the D.C. Circuit’s San Manuel decision falls far short of vindication for the NLRB. Far from establishing a new way of understanding the reach of the NLRA in relation to Indian tribes, the D.C. Circuit’s ruling is distinctly pragmatic and fact-specific.
B. The Board’s Present Assertion of Jurisdiction
These are the relevant judicial precursors to the Board’s present assertion of jurisdiction under the NLRA. Relying on the “Tuscarora doctrine” and the new “discretionary jurisdictional standard” it adopted in its San Manuel decision, the Board exercised its discretion to hold the Little River Band’s Fair Employment Practices Code preempted by the NLRA. Little River Band of Ottawa, Indians Tribal Gov’t,
The Board rejected the Band’s reliance on Pueblo of San Juan in challenging its assertion of jurisdiction. The Board characterized the Tenth Circuit’s decision as narrow and inapposite because it did not
In my opinion, the analysis employed by the Tenth Circuit in Pueblo of San Juan is true to the governing law and should be adopted in the Sixth Circuit as well. It is not necessary to recapitulate that reasoning here. Neither the Board nor the majority has identified error in the Tenth Circuit’s analysis. Tellingly, the Board has not asked us to apply the D.C. Circuit’s San Manuel hybrid approach in this case. Rather, it continues to pursue judicial approval of its new Tuscamra-Coeur d’Alene approach. The Tenth Circuit considered it and definitively rejected it. The D.C. Circuit considered it and demurred. Today, in the Sixth Circuit, the Board finds a sympathetic ear ... notwithstanding Congress’s silence, notwithstanding the suspect origins of the Tuscarora-Coeur d'Alene “doctrine,” and notwithstanding the lack of any persuasive reason to depart from the traditional Indian law principles that the Supreme Court has consistently applied. This sympathy seems particularly Ill-timed in view of the Supreme Court’s recent reaffirmation of the traditional principles in Bay Mills.
C. Particular Objections
But before considering the significance of Bay Mills, several elements of the majority’s approval of the Board’s innovation deserve particular mention. First, my colleagues purport to find legitimacy for the Board’s new approach in two Supreme Court opinions that are said to “anticipate” this evolution in traditional Indian law principles. The first of these is the Tuscarora opinion itself. Tuscarora, of course, speaks for itself. The grounds for my conclusion that some courts, and now the Board, have read much more into the Tuscarora statement than was ever intended are adequately stated above. Not least of these is the fact that the Tuscarora statement (much less the Tuscarora “doctrine”) has been ignored by the Supreme Court ever since. Moreover, even those courts that have viewed the statement as significant have recognized it to be in the nature of dictum. Lastly, the holding in Tuscarora, on the reach of the Federal Power Act: (a) did not result in any impairment of tribal sovereignty; and (b) hinged not on the generally-applicable nature of the Act, but on the Court’s discernment of Congress’s manifest intent. The holding of Tuscarora, then, is entirely consonant with traditional Indian law principles. The Tuscarora holding gave effect to the clear indications of congressional intent, just as we should here ... to the extent there are any.
The majority also cites Merrion as signaling the Supreme Court’s willingness to find implicit divestiture of tribal sovereignty in a federal law of general applicability. Majority Op. at 547 n. 1. Yet, the Merrion Court held that just such a generally applicable law, the Natural Gas Policy Act, did not effect a divestiture precisely because the text and legislative history did not evidence such a congressional intent. Merrion,
Nonetheless, my colleagues note that the FEP Code affects non-Indians who obtain employment within the Band’s trust
In Montana v. United States,
Here, in contrast to those cases, there is no real dispute that the Little River Band’s enactment of the FEP Code, regulating employment relations between the tribe and tribal members and nonmembers alike, on tribal lands within the Tribal Government’s jurisdiction, is a bona fide exercise of inherent sovereign authority. See Merrion,
While these decisions address questions regarding the scope of retained inherent tribal sovereignty, the instant appeal, as the majority recognizes, presents a different question. Majority Op. at 543-44. The Band’s authority to enact the FEP Code is unquestioned. We must instead decide whether, under traditional Indian law principles, the Board has authority, per its “new approach,” to interfere with the Band’s legitimate exercise of tribal sovereignty, and specifically, whether there are clear indications that Congress has authorized such interference, explicitly or implicitly. Because there are no such clear indications, as the majority must eon-
D. Teaching of Bay Mills
Indeed, Bay Mills clearly illustrates the Court’s steadfast deference to Congress’s plenary and exclusive role in defining tribal sovereignty: “Although Congress has plenary authority over tribes, courts will not lightly assume that Congress intends to undermine Indian self-government.” Bay Mills,
Moreover, the Court expressly declined to draw the distinction, here urged by the Board as well, between actions of tribal self-governance and commercial activities of the tribe. The court gave one “simple reason: because it is fundamentally Congress’s job, not ours.” Id. at 2037. Congress, the Court observed, “has the greater capacity to weigh and accommodate the competing policy concerns.” Id. at 2037-38 (internal quotation marks omitted).
Bay Mills is not controlling, but it highlights the incorrectness of the majority’s analysis. A couple of particular examples further illustrate the point. One sentence that typifies the majority’s opinion reads as follows: “The tribes’ retained sovereignty reaches only that power needed to control internal relations, preserve their own unique customs and social order, and prescribe and enforce rules of conduct for their own members.” Majority Op. at 550 (internal alterations omitted). The statement simply cannot be reconciled with Bay Mills, for we know that a tribe’s sovereignty encompasses all historic “core aspects” of its sovereignty—more than just controlling internal relations (and including immunity from suit). Bay Mills,
The majority opinion reads as if Bay Mills doesn’t exist. It relies on Montana as “charting] the contemporary law of implicit divestiture of inherent tribal sovereignty.” Id. at 545 (emphasis added). Yet, as explained above, Montana is not a divestiture case at all; Bay Mills is. And in the debate between the justices in Bay Mills, thirty-three years after Montana, we find a truly contemporary clarification of Indian sovereignty. The dissent in Bay Mills would have applied a “modest scope
In sum, the majority’s sympathy for the Board’s assertion of jurisdiction in this case not only finds precious little support in, but is affirmatively undercut by, the Supreme Court’s most recent pronouncements on Indian sovereignty.
Ill
To be clear, my difference with the majority opinion has nothing to do with the wisdom of applying the NLRA’s provisions to employment relations on Indian lands. Such a matter of policy is within Congress’s exclusive and plenary authority. There simply is no indication that the NLRB’s new approach is harmonious with congressional intent. In fact, the best indications are actually to the contrary.
Congress has been committed to a policy of promoting tribal self-government by encouraging tribal self-sufficiency and economic development. California v. Cabazon Band of Mission Indians,
There are thus manifest reasons to conclude that Congress’s silence regarding application of the NLRA to Indian tribes should not be read as implicitly authorizing divestment of tribal sovereignty. At the same time, there are sound reasons to abide by traditional Indian law principles and view Congress’s silence as reflective of intent to uphold tribal sovereignty. As the Supreme Court recently observed, “Congress of course may always change its mind—and we would readily defer to that new decision.” Bay Mills,
Disregarding these reasons, and armed with no legal support other than the “new approach” it adopted in San Manuel in 2004, the Board insists that it now has “discretionary jurisdiction” under the NLRA. Under governing law, the Board’s assertion of jurisdiction, wise or not, is plainly beyond its authority. The majority having identified no persuasive reason for complicity in the Board’s usurpation of Congress’s authority, I must dissent.
IV
How does one statement of dictum, in a 1960 Supreme Court opinion, grow into a “doctrine,” contrary to traditional principles of Indian law, yet justifying federal intrusion upon tribal sovereignty in 2015? It starts with litigants urging lower courts to adopt the dictum as a guiding rationale for extending the reach of federal law. Once one court agrees and, in the name of reasonableness, invents its own exceptions, other courts find it convenient to follow suit. Why not? It’s a handy standard, and other courts are using it without disastrous consequences. And so it begins. Then the alert federal agency, sensing a shift in momentum and judicial receptivity to expansion of regulatory power, seizes the opportunity and completely inverts its preexisting approach. Now, despite congressional silence, the courts and executive are playing in unison. Never mind one setback in the Tenth Circuit; the dictum is now become a doctrine.
But it’s also a house of cards. It should—and does—collapse when we notice what’s inexplicably overlooked in the fifty-five years of adding card upon card to “a thing said in passing.” Not only has the Supreme Court conspicuously refrained from approving it, but the “doctrine” is exactly 180-degrees backward. It presumes intent to limit tribal sovereignty when Congress is silent, even though congressional silence traditionally, and still, has been deemed insufficient to authorize limitation. Bay Mills,
. Secondarily, the NLRB suggested Pueblo of San Juan is factually distinguishable in that it implicated an exercise of tribal sovereign power; whereas in San Manuel, the NLRB asserted jurisdiction only to regulate commercial activities of the tribe in its proprietary capacity.
. The court reached this conclusion by focusing on the specific dispute at issue, competition between two unions to organize employees at a casino owned and operated by the tribe. The NLRB had ordered the tribe to grant equal access to both unions. Even though the court noted that employment relations at the casino were subject to a tribal labor ordinance, which represented an act of governance, the court held the ordinance was only “ancillary” and “secondary” to the commercial undertaking at issue. The D.C. Circuit thus focused on the tribe’s proprietary interest as owner of a commercial enterprise, rather than its status as sovereign of the territory where the casino was located.
. The facts of this case are materially distinguishable from those presented in San Manuel. The nature of the NLRB’s instant intrusion—not simply resolving a particular dispute between unions at a casino, but asserting the NLRA’s preemptive effect to bar enforcement of numerous provisions of the Band’s comprehensive FEP Code indefinitely—threatens a much more substantial impairment of the Band's sovereign authority. See also Pueblo of San Juan,
