Monell, et al. v. Boston Pads, LLC, et al. (Lawyers Weekly No. 10-090-15)
NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA 02108-1750; (617) 557-1030; SJCReporter@sjc.state.ma.us SJC-11661 NESTO MONELL & others[1] vs. BOSTON PADS, LLC, & others.[2] Suffolk. December 2, 2014. – June 3, 2015. Present: Spina, Cordy, Botsford, Duffly, Lenk, & Hines, JJ. Independent Contractor Act. Broker. License. Real Property, License to sell. Labor, Wages. Massachusetts Wage Act. Civil action commenced in the Superior Court Department on October 17, 2011. A motion for partial summary judgment was heard by Robert C. Cosgrove, J., and entry of final judgment was ordered by Edward P. Leibensperger, J. The Supreme Judicial Court granted an application for direct appellate review. Hillary Schwab (Brant Casavant with her) for the plaintiffs. Stephen M. Perry (Robert S. Kutner with him) for the defendants. Ian O. Russell & Nicole Horberg Decter, for Massachusetts Employment Lawyers Association & another, amici curiae, submitted a brief. Philip S. Lapatin & Nathaniel F. Hulme, for Massachusetts Association of Realtors & another, amici curiae, submitted a brief. HINES, J. We granted the plaintiffs’ application for direct appellate review to determine whether the independent contractor statute, G. L. c. 149, § 148B, which makes it a violation of the statute to fail “to properly classify an individual as an employee,” applies to real estate salespersons licensed under, and affiliated with and working for a licensed brokerage firm pursuant to G. L. c. 112, § 87RR. A Superior Court judge concluded that the independent contractor statute did not apply in these circumstances to the salespersons in this industry. We affirm. 1. Background. We summarize the material undisputed facts. The defendants Jacob Realty, LLC (Jacob Realty); NextGen Realty, Inc. (NextGen); and RentMyUnit.Com, Inc., doing business as Boardwalk Properties (Boardwalk Properties) (collectively, business entities), are licensed Massachusetts real estate brokerage firms that are in the business of renting and selling real estate in Massachusetts.[3] The defendants Demetrios Salpoglou and Yuan Huang are members of Jacob Realty and shareholders of NextGen and Boardwalk Properties, and are involved in the operations of these business entities. Salpoglou serves as the broker of record for the business entities. The plaintiffs Nesto Monell, Jonathan Gibson, Rachael Butcher, and Lindsey Burnes were licensed real estate salespersons who worked for Jacob Realty under its real estate broker’s license. The plaintiff Ann McGovern was a licensed real estate salesperson who worked for NextGen under its real estate broker’s license. The plaintiff Benjamin Smith […]