1991 Update on Workers' Compensation Law
| Publication year | 1991 |
| Pages | 2223 |
| Citation | Vol. 11 No. 1991 Pg. 2223 |
1991, November, Pg. 2223. 1991 Update on Workers' Compensation Law
This article summarizes the legislative changes in worker's compensation law enacted by the 61st Colorado General Assembly. The article provides a general overview, rather than a detailed analysis. Readers also are encouraged to review the article entitled "1991 Update on Colorado Tort Reform," which appeared at page 2011 in the October 1991 issue of The Colorado Lawyer. That article covered significant legislative changes enacted since September 1990 in general tort law.
Important topics in the worker's compensation area which are covered in this article include, among other things: the redefining of "maximum medical improvement"; the introduction of "medical treatment guidelines"; the imposition of award limitations of $60,000 for permanent partial disability resulting in a 25 percent or less impairment, and $120,000 for permanent partial disability resulting in impairment greater than 25 percent; the ineligibility of injured workers to collect permanent total disability benefits if they are able to earn any wages from any employment regardless of its suitability; the abolishment of claims of "whole person disability" (injury claims must be presented as a specific injury pursuant to the disability schedule or as a physical impairment under the AMA guidelines); the limited exclusion from liability for entities responsible for job placement of individuals participating in vocational or rehabilitation programs; and the specific provisions to be included in fee agreements in workers' compensation claims, the absence of which renders the fee
1. Senate Bill 218
2. Amends: CRS §§ 8-1-102(2); 8-40-102; 8-40-201(4), (5), (8), (12), (15), and (19); 8-41-301(2); 8-41-304(1); 8-41-402; 8-42-101(1)(b) and (3); 8-42-102(2)(c) and (2)(d); 8-42-104(1); 8-42-105; 8-42-106; 8-24-107; 8-42-110; 8-42-111(2) and (3); 8-42-123; 8-43-102; 8-43-201; 8-43-202; 8-43-205(1); 8-43-207(1)(e) and (n); 8-43-209; 8-43-211; 8-43-213(1) and (2); 8-43-215; 8-43-301(10) and (11); 8-43-304(1); 8-43-307(1) and (3); 8-43-313; 8-43-315; 8-43-401; 8-43-406(2); 8-43-409; 8-43-501; 8-47-101; 13-4-102(2)(a); 24-1-121(3); 24-30-1003
[Please see hardcopy for image]3. Adds: CRS §§ 8-40-201(2.5), (3.5), (4), (5), (8), (11.5), (12), (13.5), (15), (16.5), and (19); 8-42-101(3)(a)(II), (III), (3.5), (3.6) and (3.7); 8-42-107.5; 8-42-107.6; 8-42-111(4) and (5); 8-43-203(1.5); 8-43-206.5; 8-43-
4. Repeals: CRS §§ 8-1-107(2)00; 8-40-203(1)(c); 8-40-302(1); 8-42-110; 8-47-108; 8-47-109;
5. Effective Date: This Act is effective as of July 1, 1991, and applies to injuries occurring on or after such date unless otherwise stated.
The legislature hopes that with the application of this new legislation there will be efficient delivery of benefits without the necessity of litigation and that cases are not to be more favorably construed for either the employer or employee.
"Adverse Action" is defined to mean that the Director of the Division of Workers' Compensation "has retroactively denied payment of fees, recommended a change in treating physician" or revoked accreditation of a health care provider [CRS § 8-40-201(2.5)(a)]. Effective July 1, 1995, this subsection will be repealed after being reviewed as required under CRS § 24-34-104, which gives the General Assembly the power to review regulatory agencies and their functions for termination, continuation or reestablishment [CRS § 8-40-201(2.5)(b)(I) and (II)].
"Commission" means the Workers' Compensation Medical Care Accreditation Commission, created by CRS § 8-42-101(3.5). Effective July 1, 1995, this subsection will also be repealed after being reviewed as required under CRS § 24-34-104 [CRS § 8-40-201(3.5)(b) (I) and (II)].
Definitions of "Division" and "Director" now refer to the Division of Workers' Compensation rather than to the Division of Labor [CRS § 8-40-201(4) and (5)].
"Employment" now specifically excludes an employee's voluntary participation in recreational activities regardless of employer's connection therewith [CRS § 8-40-201(8)].
"Maximum medical improvement" is the time at which any further medically determinable physical or mental impairment has become stable and no further medical treatment is reasonably expected to improve the medical condition. The possibility that the condition may improve or deteriorate over the passage of time will not prevent a finding of maximum medical improvement. Also, the need for future medical maintenance which will not significantly improve the condition will not prevent the finding of maximum medical improvement [CRS § 8-40-201(11.5)].
"Medical treatment guidelines" provide for evaluation and treatment guidelines for high cost or high frequency occupational injuries to ensure the provision of reasonably priced, appropriate medical care [CRS § 8-40-201(13.5)(a)].
An "order" is any decision rendered by the director or an administrative law judge [CRS § 8-40201(15)].
"Permanent total disability" means an employee is unable to earn any wages in the same or other employment. The burden is on an employee to prove this inability to earn wages [CRS § 8-40-201 (16.5)]. This bill can be interpreted to mean that if an individual can do any work for money, he or she will not be considered as having a permanent total disability [CRS § 8-40-201(16.5)]. To avoid a determination of permanent total disability, an employer could offer the injured employee some menial job. Moreover, the statute does not say for how long the injured employee must hold a job in order to be precluded from receiving benefits. Once an injured employee has been determined to be permanently totally disabled, his or her case may be reopened at any time if it is shown that the employee is earning in excess of $4,000 or shows an ability to return to work [CRS § 8-43-303(3)].
"Wages" has been amended to replace "reportable tips" with tips actually reported to the Internal Revenue Service. Provisions specifying that farm and ranch employees' income be limited to that reported on their W-2s has been deleted as being unconstitutional. The reasonable value of lodging, as well as other benefits received from the employer, is now included when determining wages [CRS § 8-40-201(19)].(fn1)
"Mental impairment" is now the equivalent of the previous term "mental or emotional stress." As a condition of...
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