Understanding Temporary Disability In Colorado (2026)
Contributor
Reviewed By Adam Ramirez, J.D.
Editor
Summary
- Temporary disability in Colorado is a wage replacement program
- You can receive temporary total or temporary partial disability
If you suffered work-related injuries or illnesses that prevent you from earning a living, Colorado offers help. Temporary disability in Colorado, also called temporary wage replacement, can protect you financially while you heal. These state benefits fall under the umbrella of workers’ compensation.
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Two Types of Temporary Disability Benefits
There are two forms of temporary disability in Colorado. One of them is temporary total disability (TTD), which is appropriate if your injury or illness prevents you from performing any type of work. With TTD, you receive two-thirds of your average weekly wage.
The other type of temporary disability is temporary partial disability (TPD). You can receive these benefits when you return to work but can’t perform your full duties. You receive a portion of the difference between what you’re being paid and what you would have been paid had the injury or illness not occurred.
Who Qualifies and Key Requirements
To qualify for temporary disability benefits in Colorado, the injury or illness must be work-related and approved by the insurer. There is a mandatory waiting period of three work shifts.
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How Wage Benefits Are Calculated
Benefits for TTD are two-thirds of your average weekly wages. For TPD, the calculation involves getting the difference between your average wages and your diminished wages after the injury or illness. You will receive two-thirds of that difference.
Common Reasons Benefits End
Benefits can end if you are able to return to work at your regular rate because your physician cleared you. The benefits may also end if you reach maximum medical improvement, which is when your condition will no longer improve but is stable.
If you fail to appear at a medical appointment, you could also lose your benefits. Finally, if your insurer requests to modify, suspend or terminate the benefits for other reasons than those mentioned above, they will try to do so. That is where having a workers’ compensation lawyer can assist you because you may have to reopen your claim.
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Options After Benefits Stop
If your benefits stop because you’ve reached maximum medical improvement but you have not fully recovered, you may be able to apply for permanent partial disability (PPD) or permanent total disability (PTD).
Tax Treatment of Disability Pay
Temporary disability benefits are generally tax-free. The two-thirds of your wages you receive will not be taxed in any way.
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Contact an Attorney for Help With Disability Benefits
Just as you would turn to a Colorado personal injury lawyer for assistance after an accident, you need a workers’ compensation lawyer to guide you through the process of filing for temporary disability.
At ConsumerShield, we can connect you with leading lawyers in your area. Contact us to get started.
