Opinion ID: 2617609
Heading Depth: 2
Heading Rank: 1

Heading: Rejecting officer's removal from act's exclusive remedies

Text: Initially, we recognize that the Act unambiguously provides that an employee who rejects coverage shall not have any cause of action of any kind under article 40 to 47 of this title. § 8-41-401(3), 3B C.R.S. (1994 Supp.). Because the Act bars a rejecting employee from recovery under the Act, it implicitly restores to these employees common law rights of action. Indeed, the court of appeals interpreted the Act to provide for tort claims, explaining an election to reject coverage allows an injured employee to sue his or her employer. Kelly, 873 P.2d at 14. The General Assembly also recognized that its elimination of remedies under the Act for rejecting employees could give rise to tort actions outside of the Act. However, because rejection is not encouraged, the General Assembly limited the recovery for such an action to $15,000. See discussion supra part IIB. Section 8-41-103 restores common law defenses to employers who may be subject to such actions: If an employer has complied with the provisions of articles 40-47 of this title, including the provisions thereof relating to insurance, and an action is brought against such employer or such employer's insurance carrier to recover for personal injuries or death sustained by an employee who has elected not to come under said articles, such employer and such employer's insurance carrier shall have all the defenses to the action which they would have had if said articles in part 2 of article 2 of this title had not been enacted. § 8-41-103, 3B C.R.S. (1994 Supp.). [7] Further, allowing a limited action against an employer does not give rise to the same inherent unfairness that supports the doctrine of co-employee immunity. First, the employer benefits from the employee's election to reject coverage in the form of reduced insurance premiums. Second, an employee can only reject coverage if he or she is both an officer and owner of ten percent of the corporate stock. Thus, the employer is aware of the officer's election to reject coverage, and able to insure against any potential claims. We agree, therefore, with the court of appeals' conclusion that a rejecting officer is removed from the Act's exclusivity provisions, but only to the extent that these provisions affect the employer/employee relationship.