10th Circuit: Private corporation serving Navajo Nation immune from Title VII suit

The U.S. 10th Circuit Court of Appeals (whose rulings apply to all Colorado, New Mexico, Utah, and Wyoming employers) recently affirmed the dismissal of an employment discrimination lawsuit against a private corporation serving the Navajo Nation, finding it constituted an "Indian tribe" and was thus excluded from the legal obligations of Title VII of the Civil Rights Act of 1964.

Facts

Kim R. Jim, a former employee with Shiprock Associated Schools, Inc. (SASI), alleged it discriminated against her and terminated her because of her pregnancy and maternity leave. She filed pregnancy discrimination claims under Title VII and the Americans with Disabilities Act (ADA). SASI sought dismissal of the lawsuit on the basis that it is a "tribal organization" exempted from the definition of an employer under both Title VII and the ADA.

The lower court granted SASI's request for dismissal after determining it qualified as an "Indian tribe" for purposes of both Acts, thus excluding it from the legal requirements of Title VII and the ADA. The ruling was based on the fact that: