2012 Colorado Workers’ Compensation Benefits Caps

Aug 22, 2014 | WC & Other Laws

Injured Workers should be reimbursed for lost wages while recovering for injury. However, the amount that they are eventually paid may be limited on state law adjustments to the workers’ compensation benefit caps.  There are three important limitations.  First, the law only reimburses injured workers two-thirds of their gross lost wages.  While this benefit is not reduced by payroll taxes, it still means a loss of purchasing power.

Second, there is a maximum weekly benefit.  For injuries occurring after July 1, 2012 the maximum wage loss benefit is $848.42.  That means that regardless of the salary that you are missing out on, this is the absolute maximum that you can receive on a weekly basis. This figure is commensurate with the average weekly salary of Colorado workers.   This maximum rate is adjusted every year based upon inflation.

Third, there is a limitation on the total amount of lost wage (TTD/TPD) and impairment (PPD) benefits workers may receive, called the cap.  For those injured on or after July 1, 2012, the most in TTD/TPD/PPD benefits you can receive is $78,482.00.   If your impairment rating surpasses twenty five percent of your person then your benefit cap rises to $150,000.00.

Starting January 2012, Colorado will adjust the cap on the total amount that workers are able to receive in TTD, TPD, and PPD Benefits.

What if I have a severe impairment? Will this cap apply to me?

It depends on a number of factors.  If you are off work treating for a very long time such as over a year, it becomes more likely that you may not receive the full value of your impairment rating if the impairment rating is 25% or less.  Other factors include your average weekly wage, whether you have a scheduled or whole person rating, how many body parts were injured in the accident, and the impairment rating assigned by the treating physician.

This issue illustrates how workers’ compensation injuries in Colorado can be incredibly complex.  If you have been injured on the job and are entitled to receive Colorado workers’ compensation benefit payments contact our Denver and Greeley workers’ compensation attorneys. We have helped thousands of injured workers get the maximum benefits they are entitled to under the law.