Chao

I.

BACKGROUND

The parties stipulated to the underlying facts of this case.

A. Baby Zack’s Smoke Shop

Appellant Paul Matheson is a member of the Puyallup Tribe. The Puyallup Tribe is a Pacific Northwest Indian tribe that has a reservation in the State of Washington. Paul Mathe- son owns and operates a retail store known as Baby Zack’s Smoke Shop (“Baby Zack’s”)1, located on trust land within 1 Paul Matheson, Nick Matheson and Baby Zack’s are referred to herein collectively as “the Mathesons.” 4516 SOLIS v. MATHESON the Puyallup Indian Reservation. Appellant Baby Zack’s sells tobacco products and sundries to Indians and non-Indians. Some of the goods sold by Baby Zack’s have been shipped in from locations outside the State of Washington. Baby Zack’s accepts credit card and debit card payments and uses elec- tronic or telephonic means of communication to banks and credit card companies located outside of the State of Wash- ington. Baby Zack’s regularly employs both Indian and non- Indian workers.

In 2004 and 2005, Baby Zack’s had an annual gross vol- ume of sales of not less than $500,000. Paul and Nick Mathe- son are employers within the meaning of the…