Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE REDUCTION OF WORKERS' COMPENSATION BENEFITS IN CASES WHERE A CLAIMANT MAKES A MATERIALLY DECEPTIVE STATEMENT AS PART OF THE JOB APPLICATION PROCESS CONCERNING THE PHYSICAL ABILITY OF THE CLAIMANT TO PERFORM THE REQUIREMENTS OF THE JOB.

Summary of Assessment

            This bill reduces workers' compensation benefits provided to injured workers under the Workers' Compensation Act. It reduces the benefits by 50 percent where it is shown that the injured employee made a materially false statement or failed to fully disclose conditions concerning the physical ability of the employee to perform the requirements of the job and was subsequently injured on the job. The bill would become effective ninety days after the legislature adjourns unless a referendum petition is filed and approved by the voters.

            The provisions of this bill will result in a reduction of benefits paid by insurers to injured workers in such cases. The standard for reduction of benefits in this bill is less than the others in this section of the Workers’ Compensation Act as it does not require a willful act. This penalty is also in addition to a possible criminal conviction which would allow all benefits to be forfeited. This bill could result in increased hearings to determine whether or not an employee made a materially false statement or failed to fully disclose conditions concerning the physical ability of the employee to perform the requirements. The number of additional hearings that this bill could generate cannot be accurately estimated at this time, but is believed to be insignificant. The provisions of this bill will not affect any other state agency or unit of local government, except in its role as an employer. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Labor and Employment