diff --git a/magnumclient/common/utils.py b/magnumclient/common/utils.py
index 7539fd29..4c40bc3f 100644
--- a/magnumclient/common/utils.py
+++ b/magnumclient/common/utils.py
@@ -80,6 +80,16 @@ def args_array_to_patch(op, attributes):
     return patch
 
 
+def handle_labels(labels):
+    labels = format_labels(labels)
+    if 'mesos_slave_executor_env_file' in labels:
+        environment_variables_data = handle_json_from_file(
+            labels['mesos_slave_executor_env_file'])
+        labels['mesos_slave_executor_env_variables'] = json.dumps(
+            environment_variables_data)
+    return labels
+
+
 def format_labels(lbls, parse_comma=True):
     '''Reformat labels into dict of format expected by the API.'''
 
@@ -111,3 +121,26 @@ def format_labels(lbls, parse_comma=True):
 
 def print_list_field(field):
     return lambda obj: ', '.join(getattr(obj, field))
+
+
+def handle_json_from_file(json_arg):
+    """Attempts to read JSON file by the file url.
+
+    :param json_arg: May be a file name containing the JSON.
+    :returns: A list or dictionary parsed from JSON.
+    """
+
+    try:
+        with open(json_arg, 'r') as f:
+            json_arg = f.read().strip()
+            json_arg = json.loads(json_arg)
+    except IOError as e:
+        err = _("Cannot get JSON from file '%(file)s'. "
+                "Error: %(err)s") % {'err': e, 'file': json_arg}
+        raise exc.InvalidAttribute(err)
+    except ValueError as e:
+        err = (_("For JSON: '%(string)s', error: '%(err)s'") %
+               {'err': e, 'string': json_arg})
+        raise exc.InvalidAttribute(err)
+
+    return json_arg
diff --git a/magnumclient/tests/test_utils.py b/magnumclient/tests/test_utils.py
index dc14f6a1..d2632018 100644
--- a/magnumclient/tests/test_utils.py
+++ b/magnumclient/tests/test_utils.py
@@ -16,7 +16,11 @@
 #    under the License.
 
 import collections
+import mock
+from oslo_serialization import jsonutils as json
 import six
+import six.moves.builtins as __builtin__
+import tempfile
 
 from magnumclient.common import cliutils
 from magnumclient.common import utils
@@ -230,3 +234,40 @@ class CliUtilsTest(test_utils.BaseTestCase):
             ('c', dict_out['c'])])
 
         self.assertEqual(six.text_type(dict_exp), six.text_type(dict_act))
+
+
+class HandleJsonFromFileTest(test_utils.BaseTestCase):
+
+    def test_handle_json_from_file_bad_json(self):
+        contents = 'foo'
+        with tempfile.NamedTemporaryFile(mode='w') as f:
+            f.write(contents)
+            f.flush()
+            self.assertRaisesRegex(exc.InvalidAttribute,
+                                   'For JSON',
+                                   utils.handle_json_from_file, f.name)
+
+    def test_handle_json_from_file_valid_file(self):
+        contents = '{"step": "upgrade", "interface": "deploy"}'
+
+        with tempfile.NamedTemporaryFile(mode='w') as f:
+            f.write(contents)
+            f.flush()
+            steps = utils.handle_json_from_file(f.name)
+
+        self.assertEqual(json.loads(contents), steps)
+
+    @mock.patch.object(__builtin__, 'open', autospec=True)
+    def test_handle_json_from_file_open_fail(self, mock_open):
+        mock_file_object = mock.MagicMock()
+        mock_file_handle = mock.MagicMock()
+        mock_file_handle.__enter__.return_value = mock_file_object
+        mock_open.return_value = mock_file_handle
+        mock_file_object.read.side_effect = IOError
+
+        with tempfile.NamedTemporaryFile(mode='w') as f:
+            self.assertRaisesRegex(exc.InvalidAttribute,
+                                   "from file",
+                                   utils.handle_json_from_file, f.name)
+            mock_open.assert_called_once_with(f.name, 'r')
+            mock_file_object.read.assert_called_once_with()
diff --git a/magnumclient/v1/baymodels_shell.py b/magnumclient/v1/baymodels_shell.py
index 28d4659b..8642868a 100644
--- a/magnumclient/v1/baymodels_shell.py
+++ b/magnumclient/v1/baymodels_shell.py
@@ -121,7 +121,7 @@ def do_baymodel_create(cs, args):
     opts['http_proxy'] = args.http_proxy
     opts['https_proxy'] = args.https_proxy
     opts['no_proxy'] = args.no_proxy
-    opts['labels'] = magnum_utils.format_labels(args.labels)
+    opts['labels'] = magnum_utils.handle_labels(args.labels)
     opts['tls_disabled'] = args.tls_disabled
     opts['public'] = args.public
     opts['registry_enabled'] = args.registry_enabled