Massachusetts Court Revives Sunday Pay Lawsuit, Fusion Businesses in Spotlight

In a recent decision, the Massachusetts Appellate Court vacated a grant of summary judgment in favor of an employer, contending that a class action lawsuit — filed by employees alleging failure to receive ‘Sunday pay’ — was improperly dismissed. The plaintiffs are employees from Bella Sante, a local spa and salon. Their claim is primarily based on G. L. c. 136, § 6 (50), a statute that mandated certain retail employers to disburse premium pay to workers for hours labored on Sunday. This particular law enforces requirements for employers that sell retail goods; however, it was phased out in 2023.

The verdict by the Massachusetts Appellate Court emphasizes the interpretive challenge posed by this phased-out ‘Sunday Pay’ Law, especially concerning employers whose business models encompass both service provision and retail goods. In this instance, it is applicable to Bella Sante, a fusion of both a spa and a retail establishment.

The implications of this ruling could have considerable ramifications for similar businesses within Massachusetts and potentially inspire challenges in other jurisdictions with analogous laws. Ensuring fair employee compensation amidst rapidly evolving and complex commerce practices remains a critical issue for law firms and corporations to observe.