Penalties

A claimant’s benefits may be reduced, suspended, or completely terminate due to certain behavior, including:

1. They fail to report their injury in writing within four (4) days of its occurrence (or within thirty (30) days if it is an occupational disease).  (Section 8-43-102, C.R.S.).
2. They refuse to submit to a treating doctor’s rescheduled appointment. (Section 8-42-105 (2)(c), C.R.S.; Rule 6-1 (A)(5), DOWC Rules of Procedure.
3. They engage in an injurious or unhealthy practice which worsens or prolongs their injury. (Section 8-43-404 (3), C.R.S.).
4. They refuse to attend an in dependent medical evaluation. (Section 8-43-404 (3), C.R.S.).
5. They refuse to appear or cooperate in a vocational evaluation. (Section 8-43-404 (3), C.R.S).
6. They fail to obey an order from the Director or an Administrative Law Judge. (Section 8-43-304 (1), C.R.S.). Every day’s failure to obey the order is considered a separate offense and is punishable by a fine of up to $1000.00 per day.
7. They willfully violate a reasonable safety rule or willfully fail to use a safety device provided by their employer, and their behavior causes their injury. (Section 8-42-112(1) (a) and (b), C.R.S.).
8. They willfully mislead the employer about their ability to safely perform an offered job, the employer relies on that representation, and the employee is subsequently injured. (Section 8-42-112(1) (d), C.R.S.)
9. They have any non-prescribed controlled substance (drug), or at least .10 percent blood alcohol level, in their system during work hours. (Section 8-42-112.5, C.R.S.)
10. They fail to show up for modified job which has been approved by their primary treating physician. (Section 8-42-105 (3) (d), C.R.S.; Rule 6-1(A)(4), Division of Workers’ Compensation Rules of Procedure).

Employers can be penalized for a number of things, including failure to file a position statement, (admission of liability or notice of contest) in a timely fashion (Section 8-43-203 (2), C.R.S.), failure to be insured (Sections 8-43-408(1), 8-43-409, C.R.S.), failure to pay a judgment when non-insured (Section 8-43-408(2), C.R.S.), failure to pay medical or permanent disability benefits in a timely fashion (Section 8-43-401 (2), C.R.S.), failure to cooperate with claims managers at the Division of Workers’ Compensation (Section 8-43-218 (3), C.R.S.), and failure to obey an order from the Director of Administrative Law Judge (Sections 8-43-304, 8-43-305, C.R.S.).  Penalties vary in amount and to whom they are paid.  For example, some penalty awards are shared by the claimant and the Subsequent Injury Fund.  (Section 8-43-203(2), C.R.S.).