On September 15, 2025, the Colorado Supreme Court held that the statute of limitations for claims brought under Colorado’s Minimum Wage Act is two or three years, depending on whether the violation is willful. The decision is good news for employers: it overturns a lower court ruling that held the statute of limitations was six years.
Background on Statutes of Limitations and the Perez Case
The term “statute of limitations” refers to the time period during which a plaintiff must bring a legal claim. After the statute of limitations period expires, plaintiffs are generally barred from bringing claims in court. Some laws include an express statute of limitations, while others are silent on the issue. The latter category requires courts to step in and determine the appropriate limitations period.
Samuel Perez worked for By the Rockies, LLC (BTR). Perez filed a claim alleging that BTR violated the Colorado Minimum Wage Act by failing to provide him and his colleagues with required meal and rest breaks. Everyone agreed that Perez brought his claim five years after the alleged minimum wage violation.
Colorado’s Minimum Wage Act, however, is silent regarding the statute of limitations period. In the absence of an express time period, the question before the court was this: What is the statute of limitations for claims under the Minimum Wage Act?
Perez argued that a six-year limitations period for certain determinable debts applied, reasoning that unpaid wages are a determinable debt. BTR, on the other hand, argued that the Colorado Wage Claim Act’s limitations period applied because that statute applies to unpaid wage claims. The Wage Claim Act has a limitations period of two or three years, depending on whether the violation is willful. This timeline is consistent with most other wage and hour law statutes, such as the Fair Labor Standards Act (FLSA).
The trial court concluded that the two- or three-year statute of limitations under the Wage Claim Act applied and dismissed the case. Perez appealed. The Colorado Court of Appeals, however, reversed, concluding that the six-year period under the determinable debt statute applied. BTR appealed to the Colorado Supreme Court.
Colorado Supreme Court’s Decision
The Colorado Supreme Court reversed the Colorado Court of Appeals, siding with the district court and BTR. The Court held that the Wage Claim Act and the Minimum Wage Act are similar in nature and therefore should be read together.
In reaching this conclusion, the Court noted that the Minimum Wage Order (which was in effect at the time of the alleged wage violations and is now the Colorado Overtime and Minimum Pay Standards (COMPS) Order) required employers to keep payroll records for three years after wages or compensation were due. It would be inconsistent, the Court explained, to require employers to defend claims stretching back six years when they are not required to retain records that long.
Key Takeaways
This decision is good news for Colorado employers: the holding shortens the period during which employees may bring claims for unpaid wages and confirms that Colorado aligns with the FLSA’s limitations periods. Employers, however, must remain vigilant for potential wage and hour issues. Colorado law has substantial penalties for employers who fail to pay required wages.
Employers Council has the resources to help employers mitigate wage claim risk, such as whitepapers and training on wage and hour issues. Employers Council members can contact us at info@employerscouncil.org for assistance.
Drew Hintze is a managing attorney with Employers Council.