The following presents
a list of the most questions and inquiries about Native American
Preference and Tribal Employment Rights Ordinance (TERO).
- WHAT IS THE PURPOSE
OF TERO?
- WHY IS THERE A NEED
FOR TERO?
- WHAT ARE THE BASIC
REQUIREMENTS OF TERO?
- WHAT IS A COMPLIANCE
PLAN?
- WHAT TERO REQUIREMENTS
ARE THERE IN CONTRACTING BIDS?
- IS THERE A DIFFERNCE
BETWEEN TRIBAL AND NATIVE AMERICAN PREFERENCE?
- WHAT IS THE EXTENT
OF TERO JURISDICTION?
- ARE THERE ANY EXEMPTIONS
TO TERO REQUIREMENTS?
- WILL TERO INTERRUPT
MY DAILY BUSINESS OPERATIONS?
- DOESN'T TERO DO AWAY
WITH THE COMPETITIVE BIDDING PROCESS AND FAIR COMPETITION?
- ARE EMPLOYERS PROTECTED
AGAINST UNFAIR TERO VIOLATION CHARGES?
- WHAT SANCTIONS DO
EMPLOYERS FACE FOR VIOLATIONS OF TERO?
- CAN SANCTIONS IMPOSED
BY THE TERO COMMISSION BE APPEALED?
- ARE TERO FEES LEGAL?
- HOW HAVE VARIOUS FEDERAL,
STATE AND OTHER AGENCIES VIEWED TERO IN THEIR OPERATION?
- WHAT IS THE PURPOSE
OF TERO?

To access more employment & training opportunities for Native
Americans and their families. To provide more business & economic
opportunities for businesses owned by Native Americans.
- WHY IS THERE A NEED
FOR TERO?

Since unemployment rate in Native communities remains high, Tribes
must take strong actions to protect the employment rights of Native
American people.
- WHAT ARE THE BASIC REQUIREMENTS
OF TERO?

All employers operating within tribal jurisdiction are required
to provide Indian preference in employment, training, contracting,
sub-contracting.
Followings are the major provisions and requirements found in most
TERO Ordinances that employers must agree:
- To ensure Native preference, employers need to submit and
negotiate a detailed compliance plan of employer workforce needs.
- To utilize the TERO skills banks for all referrals and consider
Native applicants before interviewing or hiring any Non-Native
worker.
- To negotiate with the TERO Compliance Officer/s the specific
number of Natives in each job classification and to cooperate
with tribal training programs to hire a certain number of trainees.
- To eliminate all extraneous job qualification criteria or
personnel requirements which may act as a barrier to Native
employment. TEROs are guided by EEOC guidelines for verifying
legitimate Bona-fide Occupational Qualifications (BFOQ's).
- To keep in contact with the TERO office in order to resolve
any employee problems and issues.
- To acknowledge and respect tribal religious beliefs and cultural
difference and to cooperate with the TERO to provide reasonable
accommodations.
- All employers who have collective bargaining agreements with
one or more unions must secure a written agreement from their
unions indicating that they will comply with TERO.
- The TERO certified worker shall be treated the same as the
other employees. There will be a Zero tolerance to discrimination
within the boundaries of the Tulalip Reservation.
The success of TERO programs can be directly attributed to the fact
that these programs embody all of the critical elements listed above.
- WHAT IS A COMPLIANCE
PLAN?

Compliance Plan is a written document that provides detailed descriptions
of a construction project with all the pertinent information. This
is where you list your key personnel and your work force needs.
A Key employee is a permanent employee who is in a supervisory or
specialized position and without this person you would face a financial
loss. This document is then negotiated with a TERO Compliance Officer
for approval.
- WHAT TERO REQUIREMENTS
ARE THERE IN CONTRACTING BIDS?

The TERO Office has a Native American Owned Business Registry (NAOB)
in which we certify that the companies are owned by Native Americans.
The TERO Ordinance #89 requires that you provide the opportunities
to every NAOB that is qualified to do the work.
- IS THERE A DIFFERNCE
BETWEEN TRIBAL AND NATIVE AMERICAN PREFERENCE?

Yes, on Tribally funded projects the TERO can require Tribal member
preference. This is permissible under Federal law because tribes
are exempt from Title VII of the Civil Rights Act, Executive Order
11246 and most other employment rights legislation. Native American
preference is permissible under some federal laws i.e., Indian Self
Determination Act, Buy Indian Act and under most federal laws.
- WHAT IS THE EXTENT OF
TERO JURISDICTION?

A Tribe has the authority to enact and enforce any Indian employment
preference law is grounded in it inherent sovereign powers of self-government.
This legal doctrine is the most basic principle of Indian law and
is supported by a host of Supreme Court decisions. The jurisdiction
is legally described or defined by treaty or legislation. The exterior
boundaries of the reservation including cede territories and lands
where jurisdiction has not been extinguished. TERO has a political
preference, not a racial preference and does not violate Title VII
or any other Federal Employment Law.
- ARE THERE ANY EXEMPTIONS
TO TERO REQUIREMENTS?

Yes, there are several exemptions. Direct employment by Federal/State
governments, schools, churches and some non-profits are not covered
by the TERO. Some Tribes also exempt themselves from TERO coverage.
It is important to note however, that any contract or sub-contract
let by any of these entities is covered by TERO.
- WILL TERO INTERRUPT
MY DAILY BUSINESS OPERATIONS?

No. Since TER is pro-active, the compliance plans are signed by
TERO and the employer prior to the commencement of work prevents
disputes. The Compliance Officers will monitor the TERO requirements
by doing onsite compliance visits that would not be detrimental
to business operations. TERO can sanction employers for violations
which may shut down operations but only in severe disputes and in
accordance with the applicable law.
- DOESN'T TERO DO AWAY
WITH THE COMPETITIVE BIDDING PROCESS AND FAIR COMPETITION?

No. It provides preference to bona-fide and qualified Native American
businesses on projects on or near the Tulalip Tribes Indian reservations.
As with employment contracting preference is permissible or required
under Federal, Tribal, State or other Local laws. Preference is
not provided to the exclusion of other businesses and price &
quality are still primary considerations.
- ARE EMPLOYERS PROTECTED
AGAINST UNFAIR TERO VIOLATION CHARGES?

Yes. The first level of protection comes from the TERO Compliance
Officer who handles the charge. These officers are trained to deal
with facts and merits of the case before making determinations.
Beyond the TERO Commission, grievant's can seek relief in the Tribal
and Federal Courts.
- WHAT SANCTIONS DO EMPLOYERS
FACE FOR VIOLATIONS OF TERO?

Violation of TERO requirements may result in severe sanctions. If
the TERO office determines that employers willfully and intentionally
breached TERO requirements. The TERO may:
- Deny such party the right to commence business on the reservation.
- Impose a civil fine on such party ranging on most reservations
anywhere from $500.00 to $5,000.00 per violation.
- Terminate or suspend party's operation and deny them the rights
to conduct further business on the reservation.
- Order any party to dismiss any illegally hired Non-Natives,
take action to ensure future compliance and to make back payment
of any lost wages be paid to the TERO certified Native Americans.
- CAN SANCTIONS IMPOSED
BY THE TERO COMMISSION BE APPEALED?

Yes. Sanctions imposed by the TERO Commission can be appealed in
tribal court. Appeals of tribal court decisions can be made to the
federal court system.
- It is important to note that only one appeal to a TERO commission
and tribal court decision has ever been appealed to the federal
court. The case ended at the Ninth Circuit Court of Appeals
and Appellate that upheld the TERO complaint and the Tribal
Courts decisions.
- ARE TERO FEES LEGAL?

Yes. Tribal authority to access a fee is equal to that of any government.
Taxation, licenses & fees are a valuable source for financing Tribal
governmental operations. Tribes therefore consider their social
and economic needs and priorities and set the TERO requirements
to suit them just as National, State, and other units of government
do.
Many contractors without complaint pay taxes and comply with the
governmental requirements of states, counties, etc, but openly oppose
doing so with Tribes. This "cultural discrimination" is indicative
of the lack of knowledge and acceptance of the sovereign authority
of the Tribe. Employers can realize a substantial savings since
Tribal taxes or fees pre-empt state or other local taxation on the
reservation projects often to the benefit of the employer.
The Tulalip Tribes TERO fee is 1.75% of total cost on any project
over $10,000.
The TERO has the responsibility to ensure due process of the employer
under the Tribal ordinance and that only qualified and screened
referrals are made to the employer.
- HOW HAVE VARIOUS FEDERAL,
STATE AND OTHER AGENCIES VIEWED TERO IN THEIR OPERATION?

When TERO first appeared in the late seventies there was opposition
from some and difference from others. Over the past twenty years
a great deal of progress has been made, some by direct legal action
but most through pro-active, non-adversarial, synergistic effort.
The results are Native American preference and TERO provisions,
policies and procedures figure prominently in the following:
- The Civil Rights Handbook
- The Job Training and Partnership Act
- The Small Business Administration 8(a) Program
- Public Law 93-638, The Indian Education Assistance and Self-Determination
Act of 1974
- HUD Regulations
- BIA Acquisition Assistance Agreement 84-1
- EEOC/TERO Contracts
- OFCCP Indian Employment Initiative
- FHWA ISTEA "Indians in Highway Construction Initiative"
- Indian Health Service Alaska Native Hiring Agreement
- US DOL/BAT Notice 84-1
- Indian Education Impact and Programs Under PL 81-815 (Construction)
and PL 81-874 (OPS/Admin)
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