Can a person in one state sue me for lost wages if I live in another state and this happened more than 25 years ago?

Not unless they just discovered the fact that they weren't paid correctly; or if you have been "hiding" from them. The statute of limitations to bring a wage claim is generally 3 years, but it could be extended and the statute "tolled" (meaning it didn't start running) until the discovery of the failure to pay properly. Being in another state complicates the suit, but doesn't stop the employee from bringing it.

yes, you may sue, but you will not win. Statute of Limitations ("SOL") limits the time to file suit. I know of no SOL that that is that long, except prosecution for murder, which has no SOL. If you have been harboring a grudge for 25 years, you may want to find some way to let that go and move on with your life.

Probably not from 25 years ago.

They can sue you, but if I were defending you I would raise an affirmative defenses of statute of limitations and laches.