On August 17, 2005, non-Navajo Native Americans filed this lawsuit in the United States District Court for the District of Arizona. The plaintiffs sued Bashas’ Inc. and the Navajo Nation under Title VII. The plaintiffs, represented by the EEOC, asked the court for injunctive relief, back pay, and punitive damages. Specifically, the plaintiffs claimed that Bashas’ Inc. engaged in unlawful employment practices by discriminating against the plaintiffs on the basis of their national origin, and that Bashas’ Inc. failed to make and preserve records relevant to the determination of whether unlawful employment practices had been committed.

On December 14, 2006, District Judge Stephen M. McNamee ordered a stay on the proceedings pending the appeals in the EEOC v. Peabody Western Coal case. (EE-AZ-0082 in this Clearinghouse.) Judge McNamee found that the complaint filed by the EEOC in the Peabody case were substantial identical to the complaint filed against Bashas’ Inc, and so the instant case should be stayed. On December 14, 2006, November 18, 2010, and April 6, 2012 Judge Stephen M. McNamee ordered further stays of proceedings pending developments in the Peabody case.

On September 26, 2014 the Peabody case was decided against the EEOC. Judge W. Fletcher of the United States Court of Appeals for the Ninth Circuit found that Navajo hiring preferences was a political classification, not a classification based on national origin. As such, the preferences were not a violation of Title VII.

On November 12, 2014 Judge Stephen M. McNamee dismissed with prejudice the case in accordance with the Ninth Circuit's opinion in Peabody. 828 F.Supp.2d 1056.

Gabriela Hybel - 10/23/2016


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