The Colorado Supreme Court has ruled that the statute of limitations for Colorado Minimum Wage Act Claims is the same two‑year or three‑year period under the Colorado Wage Claim Act, not the six‑year period under the “debt/determinable amount” statute. This affects all unpaid wage, overtime and minimum wage claims under the Colorado Minimum Wage statute.
What was the Legal Question in By the Rockies LLC v. Perez?
In By the Rockies, LLC v. Perez, 2025 CO 56 (Sept. 15, 2025), the Colorado Supreme Court held that claims brought under the Colorado Minimum Wage Act, C.R.S. § 8-6-118, must be filed within the same two-year (or three-year, if willful) statute of limitations set forth in the Colorado Wage Claim Act, C.R.S. § 8-4-122. The Colorado Supreme Court clarified that the longer six-year statute of limitations under the general “debt / determinable amount” statute, C.R.S. § 13-80-103.5(1)(a), does not govern such claims.
Background: What Led to This Decision
- In 2022, Plaintiff Perez filed an action alleging that his former employer, By the Rockies, LLC (a fast-food franchisee), failed to provide required meal and rest breaks during his employment in 2016-2017.
- He brought his claim under the Colorado Minimum Wage Act. However, the Colorado Minimum Wage Act does not include its own statute of limitations.
- The court faced the question of which statute of limitation applied between:
- The two-/three-year limitations period under the Colorado Wage Claim Act, § 8-4-122.
- The general six-year limitations period under § 13-80-103.5(1)(a) for actions to recover a liquidated debt or an unliquidated determinable sum.
- The District Court adopted the limitations period in the Colorado Wage Claim Act and dismissed Perez’s complaint as untimely.
- The Court of Appeals reversed, concluding the six-year statute applied.
- The case was then appealed to the Colorado Supreme Court.
The Supreme Court’s Holding & Reasoning
- The Colorado Supreme Court held that the two-year limitations period (or three years if the violation is willful) under the Colorado Wage Claim Act applies to claims under the Colorado Minimum Wage Act.
- Because Perez filed in 2022 for alleged violations in 2016-17, his claim was beyond the two-year or three-year period and thus untimely under that standard. The Court reversed the Court of Appeals’ decision and remanded with instructions to reinstate the dismissal.
What This Means for Employers and Employees in Colorado
Key points in the Court’s reasoning included:
- Statutory Scheme / Harmonization — The Wage Claim Act and Minimum Wage Act are part of a unified legislative scheme dealing with wages. Interpreting statutes that cover the same subject matter in harmony is required unless the Legislature clearly indicates otherwise.
- Legislative History / Recordkeeping Requirements — The Court noted that regulatory requirements require employers to keep payroll and wage records for three years, which aligns with the idea of a shorter limitations period.
- Avoiding Absurd Results — It would be illogical, in the Court’s view, to allow a longer period for recovering minimum wage violations than for other unpaid wages claims under the Wage Claim Act.
Why This Ruling Matters for Wage & Hour Law in Colorado
Perez v. By the Rockies, LLC is an important, clarifying decision for wage and hour law in Colorado. It clarifies that the shorter two- (or three-) year limitations period of the Colorado Wage Claim Act applies to Colorado Minimum Wage Act claims. Employees must keep this shorter statute of limitations in mind on the timing of any case under the Colorado Minimum Wage Act.
At Baird Quinn, our experienced employment lawyers assist employers and employees in navigating complex wage and compensation issues. We offer experienced, strategic legal counsel grounded in the latest case law.
FAQ: Common Questions on Statute of Limitations for Colorado Wage Claims
Q: How long do I have to file a claim under the Colorado Minimum Wage Act?
A: Two years or three years if the violation is willful under the Colorado Wage Claim Act § 8‑4‑122.
Q: Can I sue after six years for minimum wage violations?
A: No. The Colorado Supreme Court in Perez v. By the Rockies, LLC confirmed the six‑year “debt” statute (§ 13‑80‑103.5) does not apply to Minimum Wage Act claims.
Q: What if my employer failed to give meal & rest breaks?
A: Claims related to missed or late breaks under the Minimum Wage Act are treated like other wage claims and must follow the 2‑ or 3‑year limitations under the Wage Claim Act.
Q: What qualifies as a willful violation?
A: A willful violation means the employer knew or should have known the law required payment or breaks and failed to act accordingly.