Does California Law Apply to Employment Activity on Indian Reservations?

Former Senior Vice President and General Manager of Harrah’s Resort Southern California, Darrell Pilant, sued Caesars Enterprise Services and Caesars Entertainment Inc. on wrongful termination claims. The claims were based on Pilant’s allegation that he was fired for opposing the resort’s plan to reopen because he feared for the health and safety of the resort’s employees. The case presents more than the obvious question of whether or not the company was within their rights to fire their GM, but it also brings up the question of whether or not California labor law applies on the Indian reservation.

Details of the Case: Pilant v. Caesars Enterprise Services, LLC et al

Court: California Southern

Case No.: 3:20-cv-02043

In Response to Pilant’s Wrongful Termination Lawsuit:

In November, the resort argued that the lawsuit should be dismissed due to lack of jurisdiction and for excluding an essential party in the suit due to its sovereign immunity, the Rincon Band. But their arguments did not convince the judge. This was in early December. By late December, the Rincon Band was attempting to intervene in the suit as a means of bolstering Caesars' arguments to dismiss, but in February 2021, the judge denied their arguments; refusing to let the tribe join the lawsuit. In March, the tribe appealed to the Ninth Circuit requesting the court pause the suit until a decision is made. Pilant claims it’s all part of a plan to prevent his wrongful termination lawsuit from proceeding as planned. It’s also notable that for decades, the Rincon tribe has strongly resisted the application of state jurisdiction on the reservation - especially in connection to the Indian Gaming Regulatory Act.

The Question of Applying California State Law on the Indian Reservation:

The most concerning aspect of the case from the perspective of the Rincon Band’s legal counsel is whether or not state law can regulate business on Native American land. The court will have to decide if California law applies to employment activity on the Indian reservation or not, and that affects the tribe’s interests, and ultimately, according to the tribe’s legal counsel, lends credence to the request to pause the wrongful termination lawsuit.

Pilant’s Response to the Request to Pause Wrongful Termination Lawsuit:

In his response to the request to pause the wrongful termination lawsuit, Pilant claimed that the Rincon Band’s filing was simply to delay his lawsuit. Pilant filed the complaint in San Diego county court in August 2020, but the case was transferred to the California federal court in October 2020 for jurisdictional reasons.

The History of the Case: Pilant v. Caesars Enterprise Services, LLC et al

According to Pilant’s complaint, in late May 2020, California Gov. Gavin Newsom urged the San Diego-area tribal leaders not to reopen casinos. Just days after the letter from the governor, Pilant took a similar stand urging his supervisors and Caesars legal counsel not to reopen the resort. However, according to the plaintiff, the resort went ahead and reopened in May, within one week of the governor’s letter urging the opposite action. This dismissal of obvious safety recommendations urged Pilant to resign before the resort reopened, and sue the company for wrongful termination after they violated public policy.

If you have questions about California labor law violations or how employment law protects you against labor law violations, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.