Colorado Workers' Comp Settlements

How Workers' Comp Works in Colorado

Colorado's workers' compensation system is run by the state's Division of Workers' Compensation (DOWC), part of the Colorado Department of Labor and Employment. If you're hurt on the job, you're generally entitled to medical care, wage-replacement benefits while you recover, and — if the injury leaves lasting effects — a permanent disability award or settlement. Here's how that works in plain terms, with the figures and deadlines that apply to current Colorado claims.

Temporary Disability: What You're Paid While You Heal

While you can't work, Colorado pays temporary total disability (TTD) at two-thirds (66.67%) of your average weekly wage, paid every two weeks, up to a state maximum that resets each July 1. For injuries occurring between July 1, 2025 and June 30, 2026, the maximum weekly TTD benefit is $1,396.85. There's a short waiting period: benefits aren't paid until you've missed more than three shifts, and that waiting period is reimbursed if your time off lasts longer than two weeks.

If you return to work but earn less than before because of restrictions or medical appointments, you may instead receive temporary partial disability (TPD), based on the difference between your pre-injury and reduced wages.

Permanent Disability and Settlements

Once your authorized treating physician decides your condition has reached "maximum medical improvement" (MMI), they assign an impairment rating — a percentage that reflects the lasting loss of function from your injury. That percentage, combined with Colorado statute, drives the size of your award. Colorado recognizes two types of permanent partial disability:

• Scheduled impairment — for loss of function to specific body parts like fingers, hands, arms, feet, legs, eyes, vision, or hearing.
• Whole-person (non-scheduled) impairment — for the spine, lungs, or mental function, which can carry higher caps for more severe ratings.

Many Colorado claims resolve through a full and final settlement, a one-time lump sum that typically closes out future benefits and medical care for the injury. Because settling usually means giving up the right to reopen the claim, whether a lump sum makes sense depends on your rating, your future medical needs, and whether the claim is disputed.

The Doctor Question (It's a Big One in Colorado)

Unlike a regular doctor's visit, you generally can't simply pick your own physician. After you report your injury, your employer must give you a designated provider list — a written list of authorized medical providers to choose from for treatment. The treating doctor's opinion heavily influences your impairment rating and your benefits, so this choice matters. If your employer fails to properly designate a provider, you may gain the right to select your own doctor. If you disagree with the rating, Colorado has a Division Independent Medical Examination (DIME) process to resolve the dispute.

Deadlines You Can't Miss

Report your injury to your employer in writing within four working days, and file your Worker's Claim for Compensation within two years of the date of injury — a judge may extend that to three years in limited cases. Missing the four-day written-notice deadline does not automatically end your claim, but it can reduce your benefits and waiting is always risky. Filing your claim with the Division is the surest way to protect your rights and trigger the insurer's duty to respond.

Frequently Asked Questions