Colorado Supreme Court Sets Two-Year Clock on State Minimum Wage Act Claims, Strengthening Employer Defenses

Takeaways

• A two-year limitations period (or three years, for willful violations) applies to claims under the Colorado Minimum Wage Act, not the longer six-year catch-all limitations period that some state courts have applied.
• While the Minimum Wage Act does not provide a specific limitations period, the Colorado Supreme Court reasoned that it makes the most sense to apply the two-year period set forth in the Colorado Wage Claim Act, which is part of the same statutory scheme. The two-year period also aligns with the statute of limitations in the Fair Labor Standards Act.
• The decision clearly limits the potential liability period for employers facing state-law minimum wage and overtime claims and prevents plaintiffs from statute shopping based on the more favorable statute of limitations.

Related link

• By the Rockies LLC v. Perez

Article

The Colorado Supreme Court has ruled that a two-year statute of limitations applies to employees filing suit under the Colorado Minimum Wage Act. By the Rockies LLC v. Perez, 2025 CO 56 (Sept. 15, 2025). The Court’s decision clarifies that the limitations period for Minimum Wage Act claims aligns with that in the Colorado Wage Claim Act and the Fair Labor Standards Act (FLSA).

Meal and Rest Period Claim

In 2022, a former employee of By the Rockies LLC (BTR) filed suit under the Minimum Wage Act (C.R.S. § 8-6-118) alleging the employer failed to provide required meal and rest breaks during his two years of employment in 2016 and 2017.

BTR moved to dismiss his complaint as the claim was brought outside a two-year (or three-year if willful) statute of limitations period. BTR argued that the two-year statute of limitations in the Wage Claim Act (C.R.S. § 8-4-122) applied; therefore, the plaintiff’s claim, filed five years after the alleged violations, was untimely.

The district court applied the two-year limitations period from the Colorado Wage Claim Act and granted the motion to dismiss.

The plaintiff appealed. The Colorado Court of Appeals reversed. It sided with the plaintiff, holding that Colorado’s general six-year limitations period for civil actions to recover a determinable sum of money applied to Minimum Wage Act claims.

BTR then petitioned the Colorado Supreme Court for review to resolve the question of which limitations period applies to claims under the Minimum Wage Act.

Colorado Supreme Court’s Decision

The Colorado Supreme Court held that the more specific two-year statute of limitations in the Wage Claim Act applies to claims brought under the Minimum Wage Act. This finding ensures consistency among Colorado’s wage laws and with federal standards, the Court explained.

The Wage Claim Act, the state’s wage payment statute, sets a two-year statute of limitations to file a lawsuit to recover unpaid wages (three years for willful violations). The Minimum Wage Act, which entitles employees to sue to recover unpaid minimum wages and overtime, does not provide a specific limitations period in which to bring claims.

The Court reasoned that both the Wage Claim Act and Minimum Wage Act are part of the same statutory scheme. It explained that applying the Wage Claims Act’s more specific limitations period to Minimum Wage Act claims harmonizes the statutory framework. Construing the acts together avoids illogical or inconsistent results, such as allowing a longer period for minimum wage claims than for other wage claims, the Court explained. Applying the two-year period also aligns Colorado’s limitations period with the statute of limitations for federal minimum wage and overtime claims under the FLSA, the Court noted.

The fact that the operative Colorado Minimum Wage Order requires employers to keep payroll records for three years further supports the holding that Minimum Wage Act claims should not reach back further than this period, the Court added. Finally, the Court noted that it would be illogical to allow an employee to reach back only two years for claims brought under the Wage Claim Act but six years for claims under the Minimum Wage Act.

Impact

The Colorado Supreme Court’s decision provides clarity for employers facing potential claims under the statute. The decision also provides authoritative guidance to courts that adopted the six-year limitations period.

The Court’s decision also significantly reduces the scope of potential viability — particularly when defending class action Minimum Wage Act claims.

Ultimately, the decision provides employers with a fair limitation on liability that aligns with the recordkeeping requirements and federal law.

Please contact a Jackson Lewis attorney with any questions.