On March 5, 2018, the Colorado Supreme Court issued a key ruling establishing that a terminated employee seeking to recover unpaid wages under the Colorado Wage Claim Act (“CWCA”) may pursue only those claims still within the two- or three-year statute of limitations, and not all allegedly unpaid wages from the beginning of his or her employment. The employees’ reading of the CWCA would have allowed an indefinite statute of limitations on unpaid wage claims under Colorado law. Accordingly, this ruling clarifies for employers (including multijurisdictional employers, particularly those subject to wage class and collective actions across multiple states) that unpaid wage claims under Colorado law have the same statute of limitations as claims under the Fair Labor Standards Act (“FLSA”). This is in contrast to states such as New York, which provides up to a six-year statute of limitations for state law wage claims.
To read the full alert, click the PDF above.