Update on the new HB 1366 and Pinnacol Assurance’s requirements.
Last week I posted an article outlining the new Colorado requirements that companies in the construction industry must follow regarding subcontractors. After reviewing the rejection of coverage requirements for owners and partners, I questioned Pinnacol Assurance concerning the requirement to complete their Independent Contractor form as well as the Division of Workers’ Compensation’s Rejection of Coverage Form. Unfortunately the answer I received was that the Pinnacol form and the Division’s form are two separate and unique forms and both are required to be completed and filed individually. I was also reminded that if an Independent Contractor form is not filed with Pinnacol, they reserve the right to charge premiums on any wages paid to the independent contractors. Also if the Rejection of Coverage Form is not filed with the Division, then they may assess a penalty up to $500 per day.
So, if you are in the construction industry and you have any subcontractors that are waiving workers’ compensation coverage, then you need to complete and file two separate rejection forms.