What Colorado Workers Need to Know About the Uninsured Employer Fund Changes in 2026–2027

Colorado’s Uninsured Employer Fund (CUE Fund) has long served as a critical safety net for injured workers whose employers fail to carry workers’ compensation insurance. But recent state budget actions and upcoming statutory changes are reshaping what this fund can provide—and for many injured workers, the impact will be significant.

Below is a clear, up‑to‑date breakdown of what is happening, why it matters, and what injured workers in Colorado should do to protect their rights.

What Is the Colorado Uninsured Employer Fund?

The CUE Fund exists to provide limited workers’ compensation benefits to injured employees whose employers illegally fail to carry mandatory workers’ compensation insurance. When an employer is uninsured, an injured worker normally has to pursue benefits through that employer, but if recovery is impossible, the CUE Fund can step in to provide certain benefits.

For many workers, it is the only viable path to medical care, lost wage benefits, and long‑term disability support after a workplace injury.

Why Some Colorado Employers Still Fail to Carry Workers’ Compensation Insurance

Colorado law requires almost all employers to carry workers’ compensation insurance. Despite this, some businesses attempt to cut costs by failing to obtain coverage, misclassifying employees, or incorrectly treating workers as independent contractors.

When an employer is uninsured and an injury occurs, the worker is placed in a highly vulnerable position—often forced into unfamiliar legal processes at a time when medical and financial pressures are already high.

The Joint Budget Committee Raid on the CUE Fund

In May 2026, the Colorado Joint Budget Committee withdrew approximately one‑eighth of the entire CUE Fund to address the state’s budget shortfall. This unexpected reduction immediately strained the fund’s resources, limiting the benefits currently available to injured workers and narrowing the fund’s ability to respond to ongoing and future claims.

This budget action affected not only the fund’s balance but also the types of benefits the CUE Fund can realistically provide in the coming months.

The CUE Fund’s Scheduled Shutdown: July 2026 Through July 2027

As of June 5, 2026, the State of Colorado has announced that the current structure of the CUE Fund is expected to be scaled back significantly and may become unavailable entirely between July 2026 and July 2027. While these dates may shift depending on legislative action, the current expectation is a one‑year gap in availability.

During this period, injured workers whose employers are uninsured may have fewer benefit options and may have to rely more heavily on legal remedies outside the CUE Fund. This makes timely legal guidance especially important.

What Benefits Are Being Scaled Back?

As a result of the recent fund reduction and the planned year‑long suspension, the following areas are expected to be affected:

• Medical benefits—coverage may be limited or unavailable depending on the injury date and claim status.
• Temporary disability benefits—wage replacement may be harder to obtain or reduced in duration.
• Permanent disability benefits—long‑term awards may be restricted or delayed.
• Death benefits—families of workers killed on the job may have fewer recovery avenues.

Workers currently receiving benefits may see changes depending on legislative adjustments and the fund’s remaining resources.

How This Impacts Injured Colorado Workers

For anyone hurt at work after July 2026, the absence or limitation of the CUE Fund means the path to obtaining compensation becomes more complicated. Without the safety net of guaranteed fund support, an injured worker’s options may include:

• Filing direct claims against the uninsured employer
• Pursuing personal injury litigation
• Seeking coverage under alternative benefit programs
• Exploring third‑party liability claims when applicable

Each of these options requires careful legal evaluation, especially when the employer disputes responsibility or lacks assets to pay a claim.

Why Legal Representation Matters More Than Ever

With the CUE Fund facing reduced capacity and a possible one‑year shutdown, navigating an uninsured employer claim without guidance can expose workers to unnecessary delays, denials, and financial hardship. An experienced workers’ compensation attorney in Colorado can help determine the strongest path toward recovery when traditional benefits are limited or unavailable.

At The Law Office of Ryan J. Hoover, LLC, I help injured workers understand their rights, pursue the compensation they are entitled to, and take decisive action against employers who fail to follow the law.

FAQ

Will the CUE Fund definitely be unavailable between July 2026 and July 2027?

As of June 2026, the State of Colorado anticipates a suspension of benefits during that period. Legislative action could extend, shorten, or modify this window, but planning for limited availability is essential.

Can I still file a claim if my employer is uninsured?

Yes. You can still pursue a claim directly against the employer, and you may have additional remedies depending on the facts of the case. A workers’ compensation attorney can help determine the best route.

What should I do if I’m injured before July 2026?

You should file immediately. Claims filed before the expected shutdown may still qualify for benefits, depending on the fund’s remaining resources and current administrative rules.

What happens if my claim is already in progress?

Existing claims may continue, but benefit levels or availability could change. Staying in contact with legal counsel is critical to protecting your claim.

Do I need an attorney if my employer doesn’t have workers’ comp insurance?

Yes. Claims against uninsured employers are more complex, and with upcoming changes to the CUE Fund, legal representation is vital to securing compensation.