The Colorado Supreme Court just gave employers significant relief from minimum wage lawsuits. Last week, in By the Rockies v. Perez, the court ruled that the applicable limitations period for a Minimum Wage Act (MWA) violation is two years (or three years for willful violations) – rather than the six-year timeframe sought by the plaintiff in the case. We’ll explain what happened and how this decision impacts Colorado employers.
Quick Background
Colorado’s MWA gives employees who receive less than the minimum wage a right to sue and recover any unpaid amounts owed by the employer – but it is silent as to the applicable limitations period for bringing such claims. Therefore, prior to the Perez decision, claimants, employers, and courts were left to speculate about how long employees had to bring any minimum wage claims. The Colorado Supreme Court has now conclusively answered that question.
Perez v. By the Rockies
In 2022, Samuel Perez sued By the Rockies, LLC (BTR), under the MWA, claiming that his former employer had failed to provide him and other employees with required meal and rest breaks during their shifts at the fast-food restaurant in 2016 and 2017. BTR asked the court to dismiss the case, arguing that Perez brought his lawsuit too late.
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