Contractor Information

Compliance Plan

Each entity, contractor, or subcontractor intending to engage in business activity on the Tohono O’odham Nation is required to submit an employment & training plan (referred to as “TERO Compliance Plan”) to the TERO office twenty (20) business days before commencing work on the Tohono O’odham Nation. No new employer may commence work on the Tohono O’odham Nation until it has met with TERO and developed an acceptable plan for meeting its obligations under Ordinance 01-85.

Indian Preference in Employment and Training

Applies to employers employing two or more employees who during any 20-day period, spend cumulatively 16 or more hours performing work within the exterior boundaries of the Nation.

1. No new employer may commence work on the Tohono O’odham Nation until it has met with TERO and develop an acceptable Compliance Agreement Plan for meeting its obligations under Ordinance 01-85. Compliance of subcontractors or suppliers is the ultimate responsibility of the general contractor and contracting entity.
2. An employer may not employ a non-local Indian or non-Indian until TERO has been given 72 hours to locate and refer a qualified local Indian.
3. Waivers in the form of a Hiring Hall Routing Slip may be issued to key personnel. Waivers may also be issued to non-key personnel only if a local Indian is not available.
4. Any non-local Indians or non-Indians without a valid Hiring Hall Routing Slip shall be removed from the job site and the employer shall be subject to sanctions imposed by the Commission.
5. Any covered employer or subcontractor who has a collective bargaining agreement with one or more labor unions must obtain and submit to TERO a Labor Union Agreement between said Union, Employer and TERO indicating that they will comply with the Tohono O’odham Tribal Employment Rights Ordinance 01-85.
6. Must list occupational training opportunities available, such as apprentice.
7. The employer is required to inform TERO of any changes that may affect Indian preference in employment.

Tohono O’odham Nation Prevailing Wage Scale

Applies to residential, commercial and heavy construction projects in the amount of $5,000 or more on the Nation. (The Nation and all its branches, departments, programs, subordinate enterprises and authorities).

Who is exempted?

• District projects, unless district adopts wages
• Federal projects
• State projects
• Projects where wages are established by a collective bargaining agreement
• Projects performed by a natural person for that person’s personal, family or household purposes.
• Projects performed with existing employees of covered entity for entity’s own construction projects.

TERO Fees

Pursuant to Section 1110 (A) and (B) of the TERO Ordinance a covered employer must:

1. Construction contracts in the sum of $100,000 or more will pay a one-time fee of ½ of 1% of the total amount of the contract. The TERO fee applies to the primary contractor only. The TERO fee shall be paid by the employer prior to commencing work on the Nation.
2. Other than construction contracts, every covered employers with twenty or more employees working on the Nation or with gross sales of $100,000 or more shall pay a quarterly fee of ½ of 1% of employees quarterly payroll. This fee shall not apply to education, health, governmental, non-profit employers and all utilities franchised by the Nation.

The contractor is required to inform TERO of any changes that may affect the TERO fees

Application for an Exemption from Regulation 1.5

A covered employer, including a primary contractor or subcontractor wishes to be granted an exemption from compliance with the Tribal Employment Rights Ordinance (TERO) Regulation 1.5 Compliance Plan must submit an application to the Tribal Employment Rights Office before the employer indents to engage in a business activity within the Nation’s boundaries.

The TERO Director is authorized to grant exemption from some or all requirements of Section 1.5 if the Director makes a written determination that:

1. The entity, covered employer, contractor, sub-contractor will engage in business activity on the Nation primarily for non-construction purposes, such as the delivery, installation, or configuration of equipment or other tangible goods (including software or hardware) and
2. The employees who will be engaged in the business activity on the Nation are regular, permanent, or key employees of the entity, covered employer, contractor or sub-contractor and no additional employees will be hired to complete the work.

PLEASE BE ADVISED if an exemption is denied, full compliance with Regulation 1.5 is required.