In Cardona, the Industrial Claims Appeals Office (the Panel) affirmed the ALJ’s decision to award $18,000 in penalties under § 8-43-304(1), C.R.S. for failure to timely file a final admission of liability in accordance with WCRP 5-5(E).
In Cardona, the claimant suffered a work-related injury to his left knee on April 20, 2022. He was placed at maximum medical improvement (MMI) by his authorized treating physician (ATP) on January 17, 2023, and assigned a 16% lower extremity impairment rating on January 24, 2023. The MMI report and related documents were mailed to the insurer on January 26, 2023.
The ALJ found that the respondents received the ATP’s report and worksheet on February 1, 2023, as evidenced by a date stamp.
However, they did not file a Final Admission of Liability (FAL) until February 27, 2024, more than a year later. This FAL included the MMI and impairment reports but lacked a date-stamped worksheet. Instead, it showed a fax stamp dated February 14, 2024. Additionally, the FAL was not copied to the claimant’s attorney.
A second FAL was filed on April 6, 2024, this time properly copied to the claimant’s attorney and including the ATP’s report and worksheet, both stamped as received on February 1, 2023.
At hearing, respondents admitted receiving the MMI and impairment reports on February 1, 2023, but argued the impairment rating was incomplete due to a missing range of motion worksheets, which they claimed was not received until February 14, 2024. Citing Workers Compensation Rules of Procedure (WCRP) Rule 5-5(A), they contended they could not file a valid FAL without that missing documentation.
Unpersuaded, the ALJ determined the worksheets were received by respondents on February 1, 2023, and that they failed to timely file the FAL under WCRP 5-5(A). WCRP 5-5(E)(1) granted respondents 30 days from the report’s delivery date to either file a final admission or request a Division Independent Medical Exam. Here, the ALJ determined respondents were in violation of WCRP 5-5(E)(1) for failing to file a FAL by March 4, 2023. The ALJ imposed penalties of $50.00 per day for a total of $18,000, noting that the penalty is designed to enforce the rule as well as deter future misconduct. The ALJ cited to § 8-43-203(2)(a), C.R.S. and stated that fifty percent of the penalty shall be paid to the subsequent injury fund, created in § 8-46-101, C.R.S. and fifty percent to the claimant.
On appeal, the respondents argued that the ALJ erred in imposing penalties under § 8-43-304(1), C.R.S. They maintained that they did not receive the range of motion worksheets until February 14, 2024, and therefore could not file a valid Final Admission of Liability (FAL) before that date. As support, they pointed to the claimant’s exhibit showing the worksheet attached to the February 27, 2024, FAL, noting it was the only document without a February 1, 2023, date stamp.
However, based on the evidence presented accounting specifically for date stamps on the ATP’s report and worksheet the ALJ reasonably inferred that respondents received all necessary documents on February 1, 2023, triggering their obligation under WCRP 5-5(E).
The Panel ultimately upheld the ALJ’s decision, finding the respondents’ violation of WCRP 5-5(E) to be objectively unreasonable. As a result, the claimant’s request for penalties under § 8-43-304(1), C.R.S. was properly granted.
Cardona v. Baker Concrete, W.C. No. 5-219-483-002, (I.C.AO. July 28, 2025).
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