2023 Colorado Revised Statutes › Title 8 - LABOR AND INDUSTRY (§§ 8-1-101 — 8-88-207) › LABOR II - WORKERS COMPENSATION AND RELATED PROVISIONS (§§ 8-40-101 — 8-67-113) › WORKERS COMPENSATION (§§ 8-40-101 — 8-47-209) › Article 42 - BENEFITS (§§ 8-42-101 — 8-42-127) › Section 8-42-124 - [Effective 8/7/2024] Assignability and exemption of claims - payment to employers - when

(1)
Except for amounts due under court-ordered support or for a judgment for a debt for fraudulently obtained public assistance, fraudulently obtained overpayments of public assistance, excess public assistance paid for which the recipient was ineligible, or overpayment of paid family and medical leave benefits paid pursuant to article 13.3 of this title 8, claims for compensation or benefits due, or any proceeds thereof, under articles 40 to 47 of this title 8 shall not be assigned, released, or commuted except as provided in articles 40 to 47 of this title 8 and are exempt from all claims of creditors and from levy, execution, and attachment or other remedy or recovery or collection of a debt, which exemption may not be waived.
(2)
The power given in any power of attorney or other authority from any injured employee or the dependents of any killed employee purporting to authorize any other person to receive, be paid, or receipt for any compensation benefits awarded any such claimant shall be wholly void and illegal and of no force and effect; except that:
(a)
Any employer who is subject to the provisions of articles
40
to
47
of this title and who, by separate agreement, working agreement, contract of hire, or any other procedure, continues to pay a sum in excess of the temporary total disability benefits prescribed by articles
40
to
47
of this title to any employee temporarily disabled as a result of any injury arising out of and in the course of such employee's employment and has not charged the employee with any earned vacation leave, sick leave, or other similar benefits shall be reimbursed if insured by an insurance carrier or shall take credit if self-insured to the extent of all moneys that such employee may be eligible to receive as compensation or benefits for temporary partial or temporary total disability under the provisions of said articles, subject to the approval of the director. If the employee is injured while under a fixed duration contract of employment, all salary and wages paid pursuant to that contract shall be prorated over the duration of the contract in determining whether in any given week the employer paid a sum in excess of the temporary total disability benefit.
(b)
This subsection (2) shall not apply to an attorney licensed to practice law in this state and acting in accordance with a power of attorney given by the claimant solely for the purpose of distributing funds pursuant to an admission of liability or an order of the division.
(3)
Such payments shall be paid directly to the employer during the period of time that such employer continues to pay a sum in excess of the temporary total disability benefits prescribed by articles
40
to
47
of this title and has not charged any earned vacation leave, sick leave, or other similar benefits to any employee so disabled and for so long as such employee is eligible for temporary disability benefits under the provisions of articles
40
to
47
of this title. The payment of such moneys to an employer shall constitute the payment of compensation or benefits to the employee in accordance with the provisions of section
8-42-103
.
(4)
When the payment by an employer to any such disabled employee is reduced to a sum equal to or less than the temporary total disability benefits prescribed by articles
40
to
47
of this title, or when the employer has charged the employee with any earned vacation leave, sick leave, or other similar benefits for any reason, the rights of the employee to receive direct payment of any award for temporary partial or temporary total disability that said employee may be entitled to on and after the effective date of such reduction shall be reinstated in accordance with the provisions of articles
40
to
47
of this title.
(5)
Any employer subject to the provisions of articles
40
to
47
of this title and otherwise qualifying for direct payment of employee benefits as provided in this section shall notify the division and the insurance carrier of such employer's eligibility to receive such moneys. The director shall approve such direct payment after the filing of such information by the employer as the director may require.
(6)
Nothing in this section limits the right of any employee to full payment of any award that may be granted to the employee for permanent partial or permanent total disability under the provisions of articles 40 to 47 of this title 8; except that benefits for permanent total disability and permanent partial disability are subject to wage assignment or income assignment as wages pursuant to section
14-14-102 (9)
, subject to garnishment as earnings pursuant to section
13-54.5-101 (2)(b)
, and subject to administrative lien and attachment pursuant to section
26-13-122
for purposes of enforcement of court-ordered child support. Benefits for permanent total disability and permanent partial disability are also subject to garnishment as earnings pursuant to sections
13-54-104 (1)(b)(IV)
and
13-54.5-101 (2)(d)
for purposes of enforcement of a judgment for a debt for fraudulently obtained public assistance, fraudulently obtained overpayments of public assistance, excess public assistance paid for which the recipient was ineligible, or overpayment of paid family and medical leave benefits paid pursuant to article 13.3 of this title 8.
(7)
Following an injury, any injured employee may authorize in writing the continuation of any payroll deduction which the employee had authorized or could have authorized before the injury, which authorization shall be legal and may be honored by the employer to the extent that proceeds of compensation of claims are available to the employer or are made available to the employer by the employer's insurance carrier for this purpose until the authorization is revoked in writing by the injured employee.
(8)
If any employer who pays to an injured employee a sum in excess of the temporary total disability benefits prescribed by articles
40
to
47
of this title and who has not charged the employee with any earned vacation leave, sick leave, or other similar benefits seeks to have assigned the compensation benefits otherwise due the injured employee as provided in this section, the employer shall notify the employee of said request at the same time the employer makes the request of the director or insurance carrier or both.
(9)
(a)
Upon receiving notice of a lien from the family and medical leave insurance program, created pursuant to section 8-13.3-516, due to payment of family and medical leave benefits pursuant to article 13.3 of this title 8, so long as such notice is provided prior to the payment of workers' compensation temporary total disability or temporary partial disability benefits in an admitted claim, an insurer or a self-insured employer shall reimburse the family and medical leave insurance program for concurrently paid or due family and medical leave benefits and admitted compensation by diverting unpaid benefits for temporary total disability or temporary partial disability to the family and medical leave insurance program, in accordance with section 8-13.3-513 (2), not to exceed one hundred percent of ongoing workers' compensation temporary total disability or temporary partial disability benefits.
(b)
This subsection (9) applies only if the family and medical leave and workers' compensation benefits are for the same injury or occupational illness nexus.
Amended by 2024 Ch. 59,§ 1, eff. 8/7/2024.
L. 90: Entire article R&RE, p. 498, § 1, effective July 1. L. 92: (6) amended, p. 218, § 22, effective August 1. L. 94: (6) amended, p. 2048, § 6, effective June 3. L. 96: (6) amended, p. 621, § 29, effective July 1. L. 2000: (2) amended, p. 224, § 1, effective July 1. L. 2001: (6) amended, p. 720, § 1, effective May 31. L. 2006: (1) and (6) amended, p. 948, § 6, effective August 7. L. 2007: (1) amended, p. 879, § 9, effective May 14.
(1) This section is similar to former § 8-52-107 as it existed prior to 1990.
(2) Section 9 of chapter 208, Session Laws of Colorado 2006, provides that the act amending subsections (1) and (6) applies to judgments entered prior to, on, or after August 7, 2006.
2024 Ch. 59, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.
For the legislative intent contained in the 2006 act amending subsections (1) and (6), see section 8(2) of chapter 208, Session Laws of Colorado 2006. For the legislative declaration contained in the 2007 act amending subsection (1), see section 1 of chapter 226, Session Laws of Colorado 2007.