Workers on Indian Reservations Protected by Overtime Laws

A recent federal ruling confirmed that workers on reservations are protected by overtime laws. Specifically, the court held that retail employers must follow the Fair Labor Standards Act even when the business is located on tribal reservation land.

The Court of Appeals for the Ninth Circuit ruled that Baby Zack’s Smoke Shop must pay overtime under the Fair Labor Standards Act.

What the Court Looked At

The court reviewed key questions. First, it checked if the business was part of tribal self-government. Then, it looked at whether enforcement would block tribal sovereignty. Next, it tested if the company operated across state lines. Finally, it confirmed if federal overtime law could be enforced.

Ultimately, the court ruled yes to federal protection. Therefore, tribal location alone cannot cancel overtime rights for retail workers.

The court explained that:

“A retail company involved in interstate commerce cannot escape federal overtime laws by operating on reservation land.

Why This Decision Matters

Now, here are the major takeaways:

✅ Most importantly, workers on reservations may claim overtime pay
✅ Additionally, retail businesses trading across state borders must obey federal overtime laws
✅ Moreover, tribal sovereignty does not block U.S. Department of Labor when the business trades in interstate commerce
✅ Also, employers cannot force unpaid leave if reasonable accommodations allow continued work

Court’s Key Reasoning (Simplified)

• If a business trades across state lines, Fair Labor Standards Act applies
• However, tribal sovereignty remains intact for internal tribal governance matters
• But, retail employment involving tribal and non-tribal customers is not internal governance
• So, the Ninth Circuit allowed federal overtime law enforcement

A Warning for Employers

Some employers believe reservation land creates immunity. Nevertheless, this is a mistake. In fact, cases like Solis v. Matheson show courts will apply federal overtime rules when interstate business is involved. Thus, employers who deny overtime may face lawsuits.

Workers employed on reservations by interstate retail businesses are protected by overtime rights under the FLSA.
The Ninth Circuit Court of Appeals allowed the Department of Labor to enforce the law inside the reservation because the business was involved in interstate commerce.