Fines Against Uninsured Employers Can Be Unconstitutional

The Colorado Supreme Court on Monday ruled that an uninsured employer can proceed with its claim that the fine for its noncompliance with the state workers’ compensation law is unconstitutional. The case is Colorado Department of Labor & Employment v. Dami Hospitality. Dami Hospitality is the owner-operator of a Denver motel. Since it regularly maintains more than three employees, Colorado law requires it to have workers’ compensation insurance coverage. Dami allowed its coverage to lapse in July 2005. Upon receiving notification of the lapse from the Division of Workers'...