Colorado extends statute of limitations for minimum wage claims to six years.
Colorado has extended the statute of limitations for minimum wage claims under the Colorado Minimum Wage Act to six years. A recent ruling from the Colorado Court of Appeals in Perez v. By the Rockies, LLC reshapes how wage-related lawsuits are handled, confirming that employees bringing Colorado minimum wage claims—including those for missed meal or rest breaks—have six years to file. This landmark decision carries major compliance implications for businesses across the state.
Case Overview: Perez v. By the Rockies, LLC
Samuel Perez, a former fast-food worker, filed a wage claim nearly five years after leaving his job. He alleged his employer failed to provide legally required meal and rest breaks, violating the Minimum Wage Act.
By the Rockies, LLC moved to dismiss the case, arguing that Perez’s claim was barred by the Colorado Wage Claim Act (WCA)’s two- or three-year statute of limitations. The trial court agreed.
However, the Colorado Court of Appeals reversed the decision, stating that the WCA’s shorter limitations period does not apply to claims under the Minimum Wage Act.
Court’s Ruling: Six-Year Statute of Limitations Applies
The appellate court held that claims under the Colorado Minimum Wage Act fall under the general six-year statute of limitations outlined in C.R.S. § 13-80-103.5, which applies to “liquidated debts or determinable sums.”
This means claims for unpaid wages, missed rest breaks, or meal period violations under the MWA can be brought up to six years after the alleged violation.
Why This Ruling Matters for Colorado Wage Law
1. Different Statutes = Different Deadlines
Colorado has several wage-related laws, each with its own framework:
- Wage Claim Act (WCA – Article 4): 2 or 3 years
- Minimum Wage Act (MWA – Article 6): Defaults to 6 years (no specific limit in statute)
- Wage Discrimination (Equal Pay – Article 5): 2 years
The Court emphasized that these laws should not be merged for limitation purposes. MWA claims are governed independently.
2. No Legislative Limit in MWA
The Minimum Wage Act does not contain a specific limitations provision, and past efforts to add one were unsuccessful. As a result, the general six-year limitations period under state law applies.
3. Plain Language Controls
Though one judge dissented—arguing for employer fairness and consistency—the majority ruled that statutory text, not policy concerns, controls the outcome. Without express language limiting MWA claims, the broader six-year rule stands.
What Colorado Employers Should Do Now
To remain compliant and limit legal exposure, Colorado employers should take the following steps:
1. Update Record Retention Policies
Keep wage, time, and break records for at least six years—not just two or three. This ensures you’re covered if former employees bring delayed claims under the Minimum Wage Act.
2. Audit Meal and Rest Break Practices
Missed breaks are among the most common violations. Conduct routine audits to confirm that workers are receiving breaks as required by Colorado law.
3. Prepare for Historical Claims
Because claims can now span back six years, ensure your HR and payroll systems can respond to older wage questions or documentation requests.
For Employees: Know Your Rights Under Colorado Minimum Wage Law
If you’ve been denied rest breaks, meal breaks, or minimum wage pay in the last several years, you may still have time to file a claim—even if it happened long ago.
This six-year filing window gives workers more time to seek justice and recover unpaid wages. If you’re unsure whether you have a claim, speak with an employment law attorney as soon as possible.
Colorado Supreme Court Review Is Pending
As of August 2024, the Colorado Supreme Court granted certiorari to review parts of Perez v. By the Rockies, LLC. While the six-year deadline remains in place for now, the high court could provide further clarification in the near future.
Employers and HR professionals should monitor developments closely, as future rulings may impact wage claim procedures, compliance strategies, and risk exposure.
Need help navigating Colorado Employment and Wage Laws?
Schedule a consultation today with Blass Law to protect your rights and reduce your legal risk.
