Sixth Circuit Reaffirms Tribal Sovereign Immunity from Individual Claims in Employment Dispute

 

In Parrotta v. Island Resort and Casino (6th Cir. Oct. 23, 2025), the Sixth Circuit reaffirmed that tribal employers are generally shielded from federal employment lawsuits brought by individual employees, unless sovereign immunity had been clearly and unequivocally waived. In this case, a former employee (Parrotta) of the restaurant within the Hannahville Indian Community’s casino alleged that she was forced to resign when the restaurant failed to accommodate her needs as a new mother. The Fair Labor Standards Act (FLSA), a law of general applicability that is silent regarding its application to Tribes and their enterprises, provides employees who need time off during the workday to express breastmilk with certain rights and protections. That being the case, Parrotta sued the Tribe’s casino, alleging that its conduct violated the FLSA’s protections. On review, the trial court and thereafter the Sixth Circuit Federal Appeals Court held that the Tribe was immune from her suit because it had not expressly waived its immunity, nor had Congress abrogated it. By so holding, the Sixth Circuit reaffirmed preexisting case law holding that a general promise to comply with applicable law is insufficient to waive a Nation’s sovereign immunity. The Court further emphasized that, while some federal employment laws may apply to Tribes, that applicability alone does not undermine the Tribes’ sovereign immunity or allow private parties to bring viable claims against Tribes in federal court.

Why it Matters for Tribal Employers:

• Sovereign immunity remains firmly upheld. Tribes and enterprises that are considered arms of the Tribe continue to be protected against federal employment claims brought by individuals, unless the Tribe clearly and unequivocally waive their immunity.
• Mere promises to comply with the law does not waive a Tribe’s immunity. References in employee handbooks, policies, or contracts pledging compliance with federal employment laws (such as the FLSA,) will not alone be sufficient to open the door to private lawsuits.

Tribal Employers Should Consider:

• Reviewing personnel policies, employee handbooks, and contracts to ensure they are clear regarding Tribal immunity and jurisdiction.
• Communicating clearly with employees during employment about the nature of employment by a Tribal Nation and the available pathway, if any, for resolving employment disputes.
• Staying informed about ongoing developments in this area of the law

Conclusion
The Parrotta decision is a strong reaffirmation of tribal sovereign immunity against individual employee claims in the employment context. For now, Tribal employers remain well-protected from individual employee claims unless the Tribe has chosen to clearly and unequivocally waive its immunity from such suits.

For questions or assistance with reviewing or updating your employment policies, please contact Drummond Woodsum’s Tribal Nations Labor & Employment Group.