10th Circuit rules private corporation serving Navajo Nation immune from Title VII lawsuit

The U.S. 10th Circuit Court of Appeals (whose rulings apply to all New Mexico 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 of 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 because it's a “tribal organization” exempted from the definition of an employer under both laws.

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 their legal requirements. The ruling was based on the following facts: