Court Clarifies Meaning of 'Store' and 'Shop' for Purposes of Who is Owed Sunday Premium Pay Under the Massachusetts Blue Laws.

Massachusetts has a unique set of laws that govern whether a business may open on Sundays and also, if they do, whether they must pay their employees a premium for working Sundays. Known as the "Blue Laws," these laws generally provide that all business should be closed on Sundays unless they fall into one or more exemptions.

The Massachusetts Blue Laws are complicated. Very complicated. But, generally, if you fall into one of the 50 exemptions, you can open and operate on Sunday (M.G.L. c. 136 § 6). Also, if you fall into exemption 50, and employ more than a total of 7 persons, you have to pay your employees a premium for work performed on Sundays. Regardless, the premium pay requirement does not apply to administrative or professional employees.

Exemption 50 of the Massachusetts Blue Laws is broad and has not been well defined by courts. As written, exemption 50 applies to "the keeping open of a store or shop and the sale at retail of goods therein . . . and the performance of labor, business, and work directly connected therewith." So, if you work for an employer that falls into exemption 50, you should be paid a premium for working on a Sunday. Unfortunately, the terms "store" and "shop" are not defined by the statute, and, until very recently, had not been specifically addressed by Massachusetts courts. That changed on December 24, 2019.

Massachusetts Court Analyzes What is and is Not a 'Store' or a 'Shop'

SimpliSafe, Inc. sells and maintains its own brand of home security systems. SimpliSafe employs customer service representatives (“CSRs") in one of its call centers who assist customers with installations and operation of newly sold systems and who also engage in selling new systems. The Call Center is open seven days a week, and the CSRs frequently work Sundays. SimpliSafe does not pay the CSRs a Sunday premium for working Sundays. The CSRs filed a class action lawsuit against SimpliSafe, arguing that SimpliSafe violated Massachusetts law by not paying them a premium for Sunday work. SimpliSafe denied this allegation, arguing that they were not a "store or shop" under Exemption 50.

The Court disagreed. According to the Court, the terms "store" and "shop" encompass places where merchandise is offered for sale or goods are sold for retail. According to the Court, this definition covered SimpliSafe's call center because that call center was a "place" at which home security systems are "sold by retail," albeit to customers by phone. The Court rejected SimpliSafe's claim that it could not be a "store or shop" because it did not operate out of a storefront. In doing so, the Court noted that "today, nearly every retail establishment offers its products for sale via the Internet...In sum, the Internet has fundamentally changed what is considered a retail or service establishment."

If you have questions regarding Sunday pay and Holiday premium pay requirements you can read more here, or contact us to schedule a consultation with an experienced Massachusetts employment attorney today.