Colorado Supreme Court Holds that Statute of Limitations for Minimum Wage and Overtime Claims is Two Years for Non-Willful Violations and Three Years for Willful Violations, Not Six Years
September 30, 2025
By: Colin A. Walker
The federal Fair Labor Standards Act (FLSA), which governs federal minimum wage and overtime requirements, clearly provides that the statute of limitations for violations is two years for non-willful violations and three years for willful violations. Tracking the federal law, as state laws often do, the Colorado Wage Claim Act provides that the statute of limitations for violations of the Wage Claim Act is two years for non-willful violations and three years for willful violations. However, the Colorado law which governs minimum wage and overtime requirements in Colorado does not have a statute of limitations. Instead, the limitations period is prescribed in regulations promulgated by the Colorado Department of Labor and Employment (CDLE).
Unfortunately, the CDLE’s regulations contained an ambiguity which led to confusion. Seizing on this, attorneys representing employees argued that the statute of limitations for minimum wage and overtime requirements in Colorado was six years, the statute of limitation for claims for which no other time period is provided. Attorneys for employers argued that the intent was to track the FLSA and the Colorado Wage Claim Act, and that the limitations period should be the 2/3-year periods. Lower courts in Colorado came to different conclusions, some holding that the limitations period was six years and others adopting the 2/3-year periods.
On September 15, 2025, the Colorado Supreme Court settled the dispute. Explaining that because the Colorado Minimum Wage Law and the Wage Claim Act are part of the same comprehensive statutory scheme, they should be read in harmony, the Court held that the 2/3-year periods applied to minimum wage and overtime claims. The Court also cited the record-keeping requirements which require employers to keep records of wages for only three years. “The fact that this record-keeping period matches the maximum period of liability under the Wage Claim Act statute of limitations suggests that the General Assembly intended that an employee could reach back no further than three years to recover wages that were previously unpaid.” Finally, the Court held that the Colorado wage laws should be interpreted consistently with the FLSA.
In a sense, this decision is a defeat for employees and a victory for employers. However, it provides certainty which will obviate the need for complicated, time-consuming and expensive legal arguments on this issue, and, in that sense, it benefits employees and employers.