How Are Death Benefits Calculated Under Colorado Workers’ Compensation Law?
When a loved one loses their life in a workplace accident, families are left facing not only grief but also financial uncertainty.
In Colorado, the workers’ compensation system provides death benefits to help surviving dependents after a fatal work-related injury or illness.
Understanding how death benefits are calculated under Colorado workers’ compensation law can help families in Littleton and surrounding areas—such as Highlands Ranch, Englewood, Lakewood, Centennial, and Douglas County—plan for what comes next.
Who Qualifies for Death Benefits in Colorado?
Under Colorado workers’ compensation law, death benefits are paid to dependents of the deceased employee. This typically includes:
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A surviving spouse
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Dependent children (under 18, or up to 21 if enrolled in school)
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Other dependents, such as elderly parents, if they relied on the worker for financial support
Each situation is unique, but the law is designed to ensure families receive financial assistance for lost income and funeral expenses.
How Colorado Workers’ Comp Death Benefits Are Calculated
The amount of death benefits depends on the worker’s average weekly wage (AWW) at the time of death. The calculation begins with this figure, and the percentage paid to dependents is determined by their relationship to the deceased.
Here’s how it generally breaks down:
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For a surviving spouse with no dependent children:
The spouse is typically entitled to two-thirds (66 2/3%) of the worker’s average weekly wage, subject to state maximums set annually by the Colorado Department of Labor and Employment. -
For a surviving spouse with dependent children:
Benefits are shared between the spouse and the children. When children reach adulthood or complete school, the benefit amount may adjust accordingly. -
For dependent parents or other relatives:
If no spouse or children qualify, other dependents may receive a proportionate amount based on their level of dependency.
In addition to ongoing wage-replacement payments, Colorado workers’ comp death benefits also include a lump-sum payment for funeral and burial expenses, up to a statutory limit.
Duration of Survivor Benefits in Colorado
How long survivor benefits last depends on the recipient’s situation:
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A spouse typically receives benefits for life, unless they remarry.
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Children receive benefits until they turn 18 (or 21 if enrolled in school).
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Disabled dependents may continue receiving benefits for as long as their disability persists.
These benefits are designed to provide long-term financial stability during a difficult time.
What Factors Affect a Death Claim Calculation
Several factors can influence how much a family receives under a Colorado death claim calculation, including:
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The deceased worker’s earnings and employment status at the time of death
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The number of dependents
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Whether the employer’s insurance was current and compliant
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The cause and timing of the fatal injury or illness
Because each case is unique, ensuring that the average weekly wage and dependency details are correctly documented is crucial for maximizing survivor benefits in Colorado.
Protecting Families in Littleton and Across the Denver Metro Area
At The Law Office of Ryan J. Hoover, LLC, we understand how complex and emotional workers’ compensation death claims can be.
Families throughout Littleton, Englewood, Highlands Ranch, Lakewood, Centennial, Jefferson County, and Douglas County often have questions about how benefits are calculated and what steps they should take after a tragic workplace death.
Having clear information about Colorado workers’ comp death benefits helps ensure surviving family members receive the financial support they deserve under the law.