Chapter 19 - § 19.8 • WORKERS' COMPENSATION

• Jurisdiction: Colorado

§ 19.8 • WORKERS' COMPENSATION

§ 19.8.1—In General

Under the Colorado Workers' Compensation Act (WCA), covered employers must maintain insurance to cover illnesses or injuries that their employees suffer in the course of employment. C.R.S. §§ 8-40-101 through 8-47-209, and C.R.S. §§ 8-55-101 through -105. Companion regulations can be found at 7 C.C.R. 1101-3 (Workers' Compensation Rules of Procedure) and 7 C.C.R. 1101-4 (Rules Governing the Issuance of Self-Insurance Permits Under the Workers' Compensation Act). The employer must bear the entire cost of workers' compensation insurance and may not deduct any portion of the premium from an employee's wages. The workers' compensation system is administered by the Division of Workers' Compensation, which is part of the Colorado Department of Labor and Employment. For further information on the Colorado workers' compensation system, employers may refer to guides published by the Division, which include "Overview of the Division of Workers' Compensation," "Employer's Guide," and "Workers' Compensation Insurance Requirements for Employers," among others.

Employers who do not maintain workers' compensation insurance as required by statute may be subject to fines of up to $250 per day for the first violation and up to $500 per day for subsequent violations. Additionally, businesses that do not maintain workers' compensation insurance may face a cease and desist order, prohibiting them from continuing to operate their businesses until they obtain insurance. Further, an uninsured employer whose employee suffers a workplace injury or illness must pay all statutory medical and disability benefits, plus an additional 50 percent of temporary disability, permanent disability, and disfigurement benefits. See "Employer's Guide," § III on Insurance Coverage, subsection "Penalties to Uninsured Employers." The guide is available as a free download at www.colorado.gov/cdle/dwc.

§ 19.8.2—Coverage

Nearly all public and private employers in Colorado who employ one or more full-or part-time employees are required to maintain workers' compensation insurance. C.R.S. § 8-40-203. A few specified exceptions apply to certain job categories and individuals. C.R.S. §§ 8-40-301 and -302; see also "Employer's Guide," § III on Insurance Coverage, subsection "Exemptions." For private employers, perhaps the most commonly invoked exception to workers' compensation requirements is the independent contractor exception.

While the WCA does not cover...