The Fair Labor Standards Act applies to an on-reservation business owned by a member of the Puyallup Tribe of Washington, the 9th Circuit Court of Appeals ruled on Monday.

The Department of Labor subpoenaed Baby Zack's Smoke Shop, which is located on trust land. The business failed to pay overtime wages to employees, according to the government.

Owner Paul Matheson disputed the government's jurisdiction, citing the Indian nature of his business and the Treaty of Medicine Creek. Tribes aren't specifically mentioned in the FLSA.

But the 9th Circuit said laws of general applicability, like the FLSA, are in force on reservations. "Baby Zack’s is a purely commercial enterprise engaged in interstate commerce selling out-of-state goods to non-Indians and employing non-Indians," the court said.

"Here, there is nothing in the Medicine Creek Treaty directly on point discussing employment or wages and hours," the 9th Circuit added.

Get the Story:
Solis v. Matheson — FLSA Applies to On-Reservation, Tribal Member Owned Business (Turtle Talk 4/21)

9th Circuit Decision:
Solis v. Matheson (April 20, 2009)