November 7, 2025  | Colorado Division of Workers’ Compensation 

Every day, the Colorado Division of Workers’ Compensation (DOWC) gets questions from employers regarding the wage continuation program and how it affects them. This article aims to present the benefits of participating in the program to both employers and employees, as well as provide instructions on how to participate. 

Wage continuation seems very straightforward, and in general, it is exactly what it sounds like. The employer pays the injured worker their regular wages even though they are off work due to a work-related injury. Employees like this benefit because they continue to receive their full wages instead of the 2/3rd payment they would get from the insurance carrier. However, it is also a benefit to employers. Employers get to garner good-will from their employees, it’s easier to recover the employee’s share of costs associated with health insurance, and if approved by the DOWC, the insurance carrier will reimburse the injured worker’s temporary disability directly to the employer.  

How do you participate? You need to send a letter to the DOWC that clearly indicates: 

• which employees will be covered under the program, 

• that the employer will be paying more than temporary disability, 

• how long wage continuation will occur (three days, 30 days, one year, etc.), 

• that the employer will not use the employee’s vacation time or sick leave as a replacement, and 

• how employees will be notified of the program. 

The DOWC generally approves these requests within a day or two of receipt.  

What happens if an employer wants to provide wage continuation but doesn’t want to participate in the DOWC’s program? An employer can pay wages if they choose; however, there are consequences for the workers’ compensation claim. The employer cannot be reimbursed by the insurance carrier, any wages paid will not go towards the benefit cap, and it’s possible that the insurance carrier will have to pay compensation to the injured worker anyway. In other words, the employee may be paid twice.  

This program does not exempt the employer from following the requirements of the Workers’ Compensation Act. The workers’ compensation insurance carrier or third-party administrator must still be notified in accordance with statute and rule. 

This easy, free program is a win-win for both employers and injured workers, and it only takes a few minutes to get approved.  

To get started, CSD Pool members can email the CSD Pool’s Claims Advocacy Manager, Paula Lowder, at paula.lowder@marshmma.com for a sample letter that meets DOWC program requirements and will streamline your approval process.