In Perez v. By the Rockies, LLC, the Colorado Court of Appeals issued a significant ruling on the limitations period applicable to Colorado minimum wage claims clarifying the timeframe for filing disputes related to meal break and rest break violations under the Colorado Minimum Wage Act (MWA).
Background of Perez v. By the Rockies, LLC
Samuel Perez worked at a fast-food restaurant operated by By the Rockies, LLC. About five years after his employment ended, Perez filed a Colorado wage claim under the Colorado Minimum Wage Act, alleging that his employer failed to provide statutorily required meal breaks and rest breaks. By the Rockies, LLC moved to dismiss the claims as untimely, arguing that the two- or three-year limitations period from the Colorado Wage Claim Act (WCA) applied.
The trial court agreed and dismissed the complaint, applying the shorter Wage Claim Act limitations period. Perez appealed.
Appeals Court: Six-Year Deadline for Colorado Minimum Wage Act Claims
The Colorado Court of Appeals reversed the lower court’s decision, holding that the appropriate statute of limitations for minimum wage claims under the Minimum Wage Act is the six-year period provided in C.R.S. § 13-80-103.5, which governs actions to recover a liquidated debt or a determinable sum.
Key Legal Reasoning: Why Colorado Minimum Wage Claims Have a Longer Deadline
- Statutory Interpretation: The court conducted a de novo review and emphasized that the Wage Claims Act limitations period—codified in C.R.S. § 8-4-122—by its plain language, only applies to claims brought “pursuant to this article” (i.e., Article 4 of Title 8). Perez’s claim, by contrast, arose under Article 6 (the Minimum Wage Act), which does not contain an express limitations provision.
- Legislative Intent: The court found no ambiguity in the statutes. Had the legislature intended for the Wage Claim Act’s limitations period to apply to Minimum Wage Act claims, it could have said so. The court noted that the legislature chose not to include such language, and a proposed bill to amend the Minimum Wage Act with a specific limitations period had been indefinitely postponed.
- Consistency with Wage Statutory Scheme: The court observed that Colorado law already prescribes different limitation periods depending on the nature of wage claims:
- WCA (Art. 4): 2 or 3 years
- MWA (Art. 6): No specific period, so defaults to 6 years under general limitations law
- Wage Discrimination Claims (Art. 5): 2 years.
Judge Fox Dissents in Colorado Meal and Rest Break Case
Judge Fox dissented, arguing for application of the WCA’s shorter limitations period. He cited federal court cases on meal and rest break violations (Balle-Tun v. Zeng & Wong, Inc.) and advocated for consistency with recordkeeping requirements and fairness to employers. However, the majority found these policy concerns insufficient to override the plain statutory language.
What Colorado Employers and Employees Need to Know About Meal Break and Rest Break Laws
- Six-Year Window for MWA Claims: Claims under Colorado’s Minimum Wage Act—including those for unpaid rest and meal breaks—are now clearly governed by a six-year statute of limitations.
- Distinct Legal Frameworks: Employers must distinguish between claims brought under the Colorado Wage Claim Act and those under the Colorado Minimum Wage Act, as they invoke different limitations periods and statutory schemes.
- Review Record Retention Policies: Given the extended limitations period, employers should consider aligning their wage and hour record retention policies with the six-year timeframe to mitigate litigation risk from Colorado minimum wage lawsuit claims.
- Supreme Court Review in Perez V. Rockies, LLC: As of August 2024, the Colorado Supreme Court has granted partial certiorari in this case. Employers should monitor for further developments that may impact compliance strategies.
At Baird Quinn, our experienced Colorado employment lawyers assist employers and employees in navigating complex Colorado wage and hour disputes. We offer experienced, strategic legal counsel grounded in the latest case law. Contact us today.