Senate Bill 012  (SB-012) — Increased Penalties for Violation of Workers' Comp Laws — Sen. Tochtrop

Full text of SB-012 

Bill Summary:

  • Increases the penalty for insurers or employers violating workers' compensation laws from $500 to up to $1,000.
  • Changes the standard in the statute that penalizes insurers for denying medical benefits, delaying payment of medical benefits for more than 30 days, or stopping payments from "willfully" to "knowingly."
  • Allows the director of the Division of Workers' Compensation or an administrative law judge to distribute the penalties among the injured worker, the medical services provider and the workers' compensation cash fund. 

Board Position - Oppose

Concerns/Issues

  • The current standard in the law - willfully - works well and there is no need to lower it.
  • Colorado's standard for "knowingly" is inconsistent.
  • The proposed penalty is out of line with other penalties in the Workers' Compensation Act.
  • Will potentially increase workers' compensation costs by increasing penalties 
 
 

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