Colorado

With only limited exception, all private and public employers in Colorado must provide workers compensation coverage if they have one or more full or part-time employees. Any individual hired to carry out services for pay is recognized by law to be an employee, including all persons designated to public sector service and all persons chosen by private employers for remuneration.

The following is only a limited list of occupations or persons disqualified from mandatory coverage under the Workers Compensation Act. The Division of Workers Compensation can provide detailed information on exemptions or access Sections 8-40-301 and 8-40-302 of the Colorado Workers' Compensation Act for additional information.

• Certain casual repair/maintenance labor performed for a company for under $2,000 annually
• Certain household work, maintenance/repair work for a private homeowner that limited to part-time
• Licensed real estate agents or brokers that work on commission only
• Independent contractors executing specific for-hire transportation work
• Drivers who work only under a lease agreement with a common/contract carrier
• Volunteers would provide time or services for a ski area operator
• Persons that offer host home services as part of residential services
• Federal employees (covered under federal laws)
• Railroad employees (covered under federal laws)
• Independent contractors who are defined in the section: What is an independent contractor?

You may elect to reject the requirement to carry workers compensation insurance if you are a corporate officer of a corporation or a member of a limited liability. The determination to reject coverage is fulfilled by providing written notice on forms that are available from the Division. This form may be accessed through by clicking here.

The definition of a corporate officer is the chairperson of the board, treasurer, secretary, president, vice-president, or who is an owner of at least 10% of the stock in the corporation and who controls, supervises/manages the business dealings of the corporation. A member is also required to be a holder of at least 10% of the membership interest of the limited liability company at all times and also manages/controls/supervises the business of the company. For additional employer information, click on Employer's Guide or access the "Workers Compensation Insurance Requirements for Employers" brochure by click on Publications.

Yes, all individuals performing construction work on a construction site must be covered by workers compensation insurance with certain limited exceptions.

There are several categories of individuals who are eligible for exemptions:

• Corporate officers / members of a limited liability company (LLC) who own at least 10% of the stock of that corporation or LLC and participate in the management of the company.
• Members of a limited partnership (LP), limited liability partnership (LLP), or limited liability limited partnership (LLLP).
• Members of a general partnership (GP) which has a registered trade name.
• Sole proprietors who have a registered trade name.

Corporations, LLCs, and partnerships must be correctly registered and in good standing with the Colorado Secretary of State. Also, trade names must also be properly registered with the Colorado Secretary of State and in good standing. Anyone seeking an exemption must be at least 18 years old.

No, the proper form must be filed with the Division of Workers Compensation in order to receive the exemption, and it is effective the next business day after the form is received. For forms for rejecting coverage visit www.colorado.gov in the “Official Forms” section, or by clicking the following: Partner and Sole Proprietor Coverage Rejection Form, Corporate Officer and LLC Member Coverage Rejection Form.

The statute defines construction work as “all or any part of the construction, alteration, or remodeling of a structure,” but does not include “surveying, engineering, examination, or inspection of a construction site, or the delivery of materials to a construction site.” The statute defines a construction site as “a location where a structure that is attached or will be attached to real property is constructed, altered, or remodeled.”

No, unless the people performing the work are also your employees. Otherwise, owners and occupants of residential real property who contract out work done to that property are not responsible for obtaining workers compensation insurance for those workers, or for making sure the workers are covered.