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Under the California Code of Civil Procedure, an employee has three years to file a lawsuit to enforce a statutory obligation.1 In Cortez v. Purolator Air Filtration Products Company, the California Supreme Court extended the period of time in which a person can file a claim against an employer for failure to pay wages, including overtime.2
The California Supreme Court found that failure to pay earned wages, including overtime, constitutes an unfair business practice in violation of the California Unfair Competition law (UCL). Under the UCL, an employee can file a claim for unpaid wages up to four years after the alleged failure to pay. Employees can now collect up to four years of back wages under the UCL rather than three under the Labor Code.
In addition to seeking their unpaid wages, an employee can file a claim under the UCL on behalf of all other similarly situated employees of the employer, without having to file a class action lawsuit.
1. Civ. Code sec. 338
2. Cortez v. Purolator Air Filtration Products Co., 23 Cal. 4th 163 (2000)