NLRB Appeals from Decision Enjoining its Unfair Labor Practice Complaint Against Indian Nation Casino

On August 11, 2011, the National Labor Relations Board appealed to the U.S. Court of Appeals for the Tenth Circuit from a decision issued last month by federal Judge Lee West, enjoining it from proceeding with an unfair labor practice against the Chickasaw Nation's WinStar World Casino.

Last winter, the International Brotherhood of Teamsters Local 886 filed a series of charges against the casino before the NLRB in Oklahoma City. The union claimed that casino managers threatened and interrogated employees for engaging in union organizing activities in violation of the National Labor Relations Act. In the spring, the NLRB Regional Director served formal complaints against the casino, asserting that it committed unfair labor practices in violation of the Act. The complaints were consolidated for hearing in June before the Seventh Region of the National Labor Relations Board.

The Chickasaw Nation responded by filing suit against the NLRB in the U.S. District Court for Western District of Oklahoma. The Nation sought an injunction to stop the Board from proceeding with the unfair labor practice complaints. It argued that allowing the NLRB to exercise authority over the casino "would interminably and unlawfully interfere with the Nation's treaty rights and inherent powers."

The NLRB responded to the Nation's federal court action with a motion to dismiss. It argued that the federal court lacked jurisdiction to enjoin its unfair labor practice proceeding and that the Nation's only route to the federal court was on appeal from a final decision of the National Labor Relations Board.

On July 11, Judge West issued an injunction against the NLRB in favor of the Nation. He rejected the NLRB's argument that a federal court could not intervene to stop the Board from proceeding. He also rejected the reasoning of the D.C. Circuit Court of Appeals in a 2007 decision, San Manuel Indian Bingo and Casino v. NLRB, which held that a casino owned and operated by the San Manuel Band of Serrano Mission Indians was subject to the NLRA.

If the Tenth Circuit affirms Judge West's decision and disagrees with the D.C. Circuit's rationale in San Manuel, the National Labor Relations Board could seek review in the U.S. Supreme Court.