Colorado Workers’ Comp Weekly Benefits Calculator (2026)
Quick Answer: In Colorado, workers’ comp pays 66.67% of your average weekly wage (AWW), up to a maximum of $1,448.02 per week (effective July 1, 2025–June 30, 2026). If your calculated benefit falls below the state minimum, a floor rate may apply. Your AWW is calculated using the 26 weeks immediately before your injury date.
This content is for informational purposes only and does not constitute legal advice. I am not a lawyer. Consult a licensed workers’ comp attorney in your state.
From Shane: The Reality of Living on 66.67%
When I got hurt, I did what most injured workers do — I assumed the insurance company would handle everything correctly. I was wrong by nearly $200 a week.
That gap between what I was owed and what I was paid wasn’t an accident. Insurance adjusters are trained to minimize payouts. They know most injured workers won’t audit their own AWW calculation, won’t know that overtime counts, and won’t know about the second job they should have included.
Living on two-thirds of your income is brutal. It’s the difference between keeping the lights on and falling behind on everything at once. Before you accept a single weekly check, run the math yourself using this guide. Pull your paystubs. Count your overtime weeks. Add your second job wages. I wish someone had handed me this page the week I got hurt.
The Exact Colorado AWW Calculation Formula
Colorado workers’ comp weekly benefits are governed by C.R.S. § 8-42-102. The formula has three components you must understand before trusting any number an insurer gives you.
Step 1: Collect Your 26-Week Earnings Record
Your AWW is the total gross wages earned in the 26 weeks before your injury, divided by 26. If you worked fewer than 26 weeks for your employer, the divisor adjusts to the number of weeks actually worked — the numerator does not get padded.
Gross wages include:
| Wage Component | Included in AWW? |
|---|---|
| Regular hourly wages | ✅ Yes |
| Overtime pay (time-and-a-half) | ✅ Yes |
| Bonuses (production, performance) | ✅ Yes — if regularly paid |
| Tips (if reported to employer) | ✅ Yes |
| Second job wages (concurrent employment) | ✅ Yes |
| Signing bonuses (one-time) | ⚠️ Disputed — case-specific |
| Employer-paid health insurance premiums | ❌ No |
| Non-cash fringe benefits | ❌ No |
Step 2: Apply the 66.67% Rate
AWW × 0.6667 = Weekly Temporary Total Disability (TTD) Benefit
Step 3: Apply the Cap and Floor
- Maximum (2026): $1,448.02/week — equal to 91% of the Colorado SAWW per C.R.S. § 8-42-105(1)
- Minimum: Varies based on injury date; for most claimants it tracks 25% of the SAWW
If your calculated benefit exceeds $1,448.02, your benefit is capped. If it falls below the state minimum, you receive the floor amount — you do not receive less than the minimum simply because your wages were low.
Pre-Calculated Colorado Workers’ Comp Weekly Benefit Table (2026)
Benefits calculated at 66.67% of AWW. Maximum benefit of $1,448.02 applies.
| Pre-Injury Weekly Wage | Calculated Benefit (66.67%) | Benefit Paid (After Cap) |
|---|---|---|
| $300 | $200.01 | $200.01 |
| $400 | $266.68 | $266.68 |
| $500 | $333.35 | $333.35 |
| $600 | $400.02 | $400.02 |
| $700 | $466.69 | $466.69 |
| $800 | $533.36 | $533.36 |
| $900 | $600.03 | $600.03 |
| $1,000 | $666.70 | $666.70 |
| $1,100 | $733.37 | $733.37 |
| $1,200 | $800.04 | $800.04 |
| $1,300 | $866.71 | $866.71 |
| $1,400 | $933.38 | $933.38 |
| $1,500 | $1,000.05 | $1,000.05 |
| $1,600 | $1,066.72 | $1,066.72 |
| $1,700 | $1,133.39 | $1,133.39 |
| $1,800 | $1,200.06 | $1,200.06 |
| $1,900 | $1,266.73 | $1,266.73 |
| $2,000 | $1,333.40 | $1,333.40 |
| $2,100 | $1,400.07 | $1,400.07 |
| $2,170.82+ | $1,448.02 | $1,448.02 (CAP) |
| $2,200 | $1,466.74 | $1,448.02 (CAP) |
| $2,300 | $1,533.41 | $1,448.02 (CAP) |
| $2,400 | $1,600.08 | $1,448.02 (CAP) |
| $2,500 | $1,666.75 | $1,448.02 (CAP) |
| $2,600 | $1,733.42 | $1,448.02 (CAP) |
| $2,700 | $1,800.09 | $1,448.02 (CAP) |
| $2,800 | $1,866.76 | $1,448.02 (CAP) |
| $2,900 | $1,933.43 | $1,448.02 (CAP) |
| $3,000 | $2,000.10 | $1,448.02 (CAP) |
Note: The benefit cap kicks in at an AWW of approximately $2,170.82/week ($112,882/year). High earners leave significant money on the table compared to their actual wages — a $3,000/week earner receives only 48.3% of their wages, not 66.67%.
What the Law Says vs. What Actually Happens
The Law
C.R.S. § 8-42-102(2) is unambiguous: total gross wages from all concurrent employment during the 26 weeks prior to injury must be included. Overtime is wages. Bonuses paid on a regular schedule are wages.
What Insurers Actually Do
Tactic #1: The 13-Week Shortcut
Some adjusters average only your last 13 weeks instead of the required 26. If those 13 weeks were lighter weeks — say, after a slow season — your AWW drops artificially. Demand the full 26-week calculation in writing.
Tactic #2: Stripping Overtime
Adjusters sometimes argue overtime was “not regular” and exclude it. Colorado courts have consistently held that if overtime was worked in the lookback period, it is included. Keep every paystub showing overtime.
Tactic #3: Ignoring Your Second Job
If you drove for a rideshare company, worked a part-time retail shift, or held any concurrent employment when you were injured, those wages count toward your AWW. Insurers routinely omit them unless you proactively report and document them.
Tactic #4: Using Net Wages
A few adjusters will calculate off your take-home pay rather than gross wages. This is wrong. AWW is always gross wages before tax withholding.
How to Catch It: Request the insurer’s AWW worksheet in writing. Compare their 26-week wage figure against your own paystub total. Any discrepancy greater than $5 warrants a formal dispute.
Real Case Example: Fluctuating Hours + Overtime
Worker Profile: Maria, a warehouse picker in Aurora, Colorado. Injured her back on October 15, 2025.
Her Situation:
– Primary job: $20/hour, 40 regular hours/week
– Overtime: Worked 10+ overtime hours for 14 of the 26 lookback weeks
– Second job: Bartending 2 nights/week, averaging $280/week in wages + tips (reported on W-2)
Step 1 — Calculate Primary Job Wages (26 Weeks):
| Period | Regular Wages | Overtime Wages | Weekly Total |
|---|---|---|---|
| 12 non-OT weeks | $800/wk | $0 | $9,600 |
| 14 OT weeks | $800/wk | $300/wk avg | $15,400 |
| Primary Job Total | $25,000 |
Step 2 — Add Second Job Wages:
– 26 weeks × $280/week = $7,280
Step 3 — Calculate AWW:
($25,000 + $7,280) ÷ 26 = $1,241.54 AWW
Step 4 — Apply 66.67%:
$1,241.54 × 0.6667 = $827.79/week
What the insurer actually paid Maria initially: $533.36/week (they used only her base 40-hour wages and ignored overtime and her second job entirely).
The difference: $294.43/week. Over a 12-week recovery, that is $3,533.16 in underpayment — money she was legally owed.
Frequently Asked Questions
Q: What if I worked for my employer for less than 26 weeks before my injury?
A: Colorado law under C.R.S. § 8-42-102(3) provides an adjustment mechanism. If you worked fewer than 26 weeks, the AWW is calculated by dividing your total wages earned by the actual number of weeks worked — not 26. However, if that result seems unreasonably low because you just started a job with higher wages, the statute also allows using a “similar employee” wage as a comparator. This matters significantly for workers who were new hires, seasonal workers in their first season, or employees who changed jobs shortly before injury. Insurers almost never volunteer the similar-employee comparison. If your weeks-worked is less than 13 and your wages were ramping up, ask an attorney to argue comparable worker wages.
Q: Are mileage reimbursements and expense reimbursements included in my AWW?
A: No. Expense reimbursements — including mileage reimbursements at the IRS rate, per diems, and tool allowances — are not wages and are excluded from your AWW calculation. They represent cost-of-doing-business pass-throughs, not compensation for your labor. However, if your employer paid you a flat vehicle allowance that was not tied to actual mileage (i.e., you got $300/month regardless of how far you drove), there is a legal argument that this functions as wages. Case law in Colorado on flat allowances versus true reimbursements is nuanced. If a significant allowance was part of your regular compensation, document it and raise it with an attorney.
Q: My hours were cut in the last month before my injury. Can the insurer use those low-hours weeks in my AWW?
A: This is one of the most common AWW disputes in Colorado. If your hours were involuntarily reduced — due to slow business, seasonal factors, or a dispute with management — the entire 26-week lookback period is still used, including the lower-pay weeks. However, Colorado courts have occasionally allowed adjustments in cases of “extraordinary circumstances” that made the 26-week period unrepresentative. You would need to demonstrate the reduction was temporary, involuntary, and anomalous to your normal earnings pattern. Document why your hours dropped, gather pay records from the prior year showing your typical earnings, and challenge any AWW calculation that cherry-picks only your lowest-earning period.
Q: Do workers’ comp weekly benefits get taxed in Colorado?
A: No. Workers’ compensation benefits paid under Colorado law are exempt from federal income tax under 26 U.S.C. § 104(a)(1) and are also not subject to Colorado state income tax. You will not receive a W-2 or 1099 for workers’ comp benefits. This tax-free status partially offsets the 33.33% reduction from your full wages — your effective purchasing power loss is smaller than the headline percentage suggests. However, if you receive both workers’ comp benefits and Social Security Disability benefits simultaneously, an offset formula under federal law may reduce your combined total. The Social Security offset is a separate and complex calculation. Consult both a workers’ comp attorney and a tax professional if you are receiving dual benefits.
Q: What is the difference between Temporary Total Disability (TTD) and Temporary Partial Disability (TPD)?
A: TTD applies when you cannot work at all due to your injury. Your benefit is 66.67% of your AWW, subject to the $1,448.02 cap. TPD applies when you return to work in a limited capacity and earn less than your pre-injury wages. Under C.R.S. § 8-42-106, TPD is calculated as 66.67% of the difference between your pre-injury AWW and your post-injury actual weekly earnings. Example: if your AWW was $1,000 and you now earn $600/week in a light-duty role, your TPD benefit is 66.67% × ($1,000 − $600) = 66.67% × $400 = $266.68/week. This prevents total income loss while you recover but earns less, bridging the gap between your injured capacity and your full earning power.
Q: How long can I receive weekly benefits in Colorado?
A: For Temporary Total Disability (TTD), there is no fixed time limit per episode — benefits continue until you reach Maximum Medical Improvement (MMI), return to work, or your physician releases you. However, Colorado imposes a lifetime cap of 500 weeks on combined temporary disability benefits per C.R.S. § 8-42-105(3)(a). Permanent Total Disability (PTD) benefits — for workers who cannot return to any gainful employment — may continue for life with no 500-week limit, adjusted annually by the SAWW. The 500-week cap rarely affects most injured workers but is critically important for workers with catastrophic injuries who exhaust temporary benefits before resolving their claim.
Q: What happens to my benefit amount if I go back to work part-time and then get taken off work again?
A: Your AWW does not recalculate based on your light-duty wages. The AWW is locked in at your pre-injury 26-week earnings at the time of the original injury. If your doctor takes you off work again after a period of light duty, you return to TTD benefits at the same rate as before — 66.67% of your original AWW, not 66.67% of your reduced light-duty earnings. This protection is critical and one that some adjusters attempt to misapply. Get any return-to-full-duty restrictions in writing from your authorized treating physician and keep copies, because the insurer may try to use a brief return to work as grounds to permanently close your TTD benefit stream.
*This content is for informational purposes only and does not constitute
More Colorado Workers Comp Resources
See Also
- Colorado Workers’ Compensation: The Complete 2026 Guide
- Workers’ Comp for Security Guards in Colorado: The Complete 2026 Guide
- Colorado Workers’ Comp for Plumbers: Benefits, Rights, and How to Fight Back
- Colorado Workers’ Comp for Home Health Aides: The Complete 2026 Guide
- How Long Can You Receive Workers’ Comp Benefits in Colorado? (2024 Definitive Guide)
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