What to Know About Colorado’s New Workers’ Comp Laws

 Posted on July 25, 2024 in Workers' Compensation

Workers’ compensation is a complex area of law that is often changing and it is important for employers and employees alike to stay abreast of these changes. This is especially true in Colorado, where workplace injuries have been known to surpass the national average.

Last month, Colorado Governor Jared Polis signed two bills that modified the state’s workers’ compensation laws. This article will explore those changes and how they might impact Coloradoans who suffer injuries in the workplace. To understand how the new legislation may affect your case, speak with a Colorado worker’s compensation attorney.

Modified Employment

House Bill 1220 made modifications to an existing law that many workers may find welcome.

The first concerns offers of modified employment. Under Colorado law, an employer can offer an injured employee a modified job that will accommodate the employee’s injury. It could be a desk job that requires little movement, for example, or a role that requires less strenuous activity. If the employee does not accept a fair offer of modified employment, he or she can face termination.

Currently, the law allows injured employees to refuse an offer of modified employment if it would force them to drive more than 50 miles farther away than they had to travel to get to work before the injury. Beginning in January, however, injured employees will be allowed to refuse any modified job that would require them to drive if a doctor has recommended against driving.

Ear Loss

Colorado law is more generous when it comes to compensation for certain injuries such as the loss of an eye, a leg, a hand, and other limbs. HB 1220 has now added the loss of an ear to that list.

Payment Caps

HB 1220 has also increased the maximum amount for permanent and temporary disability payments.

• Currently, an injured employee with an impairment rating of up to 19 percent — meaning that the injury has impacted the worker’s ability by 19 percent or less — can collect a maximum of $75,000 in temporary and permanent disability payments combined. In January, that number will more than double to $185,000.

• Currently, an injured employee with an impairment rating of over 19 percent can collect up to $150,000 in disability payments. HB 1220 has doubled that amount to $300,000 come January.

Direct Deposit

The last provision of HB 1220 requires insurance companies and employers to send the disability payments to the employee via direct deposit if the employee so chooses. This can help eliminate wait times and avoid lost checks in the mail.

State Employees’ Compensation Benefits

The second bill, SB 149, made some changes to workers’ compensation benefits for state employees:

• Currently, state employees who reach a workers’ compensation settlement with the State of Colorado must resign from their jobs and are prohibited from working for the state again in any capacity. SB 149 has now removed that prohibition.

• The Colorado Department of Personnel must approach six different workers’ compensation insurance companies, including Pinnacol Assurance, and request a proposal from each of them for workers’ comp insurance coverage. The Department of Personnel must then report those proposals to the Colorado legislature and repeat this process every three years, beginning in 2026. The objective is to obtain the best coverage for state employees at the lowest cost for taxpayers.

Contact a Larimer County, CO Workers’ Compensation Attorney

While the new legislation is good news for workers, it is not easy keeping up with changes to the law. At Hoggatt Law Office, P.C., we understand that workers’ compensation is a legal labyrinth that you should not have to navigate on your own. Let our skilled attorneys walk you through the next steps and guide you toward the maximum compensation possible for your injury. Call 970-225-2190 to schedule a free consultation with a Fort Collins, CO workers’ compensation lawyer today.