If you pull permits on larger construction projects in Colorado, there is a new step to add to your pre-construction routine. A 2026 law adds a signed workers' compensation declaration on bigger jobs, and it is the kind of detail that is easy to miss until a permitting agency asks for it.
Here is what the law actually says, who it applies to, and what to do before your next large permit.
What the law does
Senate Bill 26-093 created a new section of Colorado law, C.R.S. 8-41-213. It was signed on May 29, 2026 and took effect the same day, applying to permit and license decisions made on or after that date, including applications pending at signing.
For a building permit or a construction permit on a project with a total construction cost of more than $1 million, the person who applies for the permit must file a signed declaration with the permitting agency before any work begins. The declaration is signed under penalty of perjury, and it confirms that everyone working under the permit — the applicant, the general contractor, and every subcontractor at any tier — either maintains workers' compensation coverage in compliance with state law for the duration of the work, or has properly rejected coverage where the law allows it.
The declaration itself is a form provided by the Division of Workers' Compensation, available on the Division's website.
Who it covers
A few boundaries matter here.
- The dollar threshold is the gate for the permit declaration. The before-work declaration applies when a project's total construction cost is more than $1 million.
- It runs through governmental permitting. It applies to building and construction permits issued by a governmental entity, which the law defines as the state, a county, a municipality, or a city and county. Confirm with your permitting agency whether your specific permit type is covered.
- The obligation sits with the permit applicant — the person or business that applies for the permit, often the general contractor or the owner-builder.
- It reaches contractor licenses too. Beyond the project declaration, the law bars a governmental entity from issuing or renewing a building permit, construction permit, or contractor license unless the required workers' compensation verification is on file for the applicant, the general contractor, and every subcontractor at any tier.
What is new, and where it has teeth
Workers' comp itself is not new. Colorado already requires coverage once a business has one or more employees, including part-time and family, and many local building departments already ask for proof of coverage before issuing a permit.
What is new is a single, signed, perjury-backed declaration that ties permits and contractor licenses to verified coverage at every tier, filed before work begins, with your name behind it.
And it has teeth. A violation can lead to suspension or revocation of the permit or license, along with penalties, and a revoked permit is not reinstated until the verification is corrected and the penalties are paid. Separately, any person may file a complaint with the Division of Workers' Compensation alleging that someone's coverage is not in compliance with state law.
Because this is a brand-new 2026 law, confirm the exact thresholds, mechanics, and penalties against the current text of C.R.S. 8-41-213, and with the Division of Workers' Compensation and your permitting agency, before you rely on any summary.
What to do before your next large permit
You do not need to overhaul anything to be ready. A few steps cover it:
- Know your threshold. Confirm the total construction cost of the project and whether it crosses $1 million, which tells you if the before-work declaration applies.
- Get the form early. Find the declaration form on the Division of Workers' Compensation website, and identify who the applicant of record will be.
- Account for everyone under the permit. Build a list of every person and subcontractor at every tier, and confirm each either maintains coverage in compliance with state law for the full duration of the work or has properly rejected it.
- Collect proof up front. Get the certificate of insurance and the W-9 from each sub before they start, and track expiration dates through the life of the job.
- Keep it together. Store the filed declaration and the coverage records tied to the right project and permit, where you can produce them if a complaint or audit ever comes in.
A simple starting point
We built a free checklist that walks through each of these areas, from confirming the threshold to filing the declaration to keeping the records a coverage complaint or audit might call for. Download the free checklist and work through it in an afternoon to spot gaps before work begins, or find it on our free resources page.
If you want help past the checklist, this is exactly what our construction subcontractor trackers are built for: tracking every sub's coverage, certificates, and W-9s with auto-flags for what is missing or expiring, so you can produce proof on demand. For hands-on setup, reach out at team@efcompliance.com.
Stay Compliant. Stay Confident.
_This article is for general educational purposes only. It is not legal, tax, insurance, licensing, or accounting advice. SB 26-093 is a new 2026 law; requirements may vary by jurisdiction, permit type, scope of work, and business structure, and rules can change. Verify directly against C.R.S. 8-41-213, the Division of Workers' Compensation, your permitting agency, or a qualified advisor before relying on this information. E&F Compliance Services does not guarantee any outcome._
_E&F Compliance Services helps founders and small operators in heavily regulated industries get compliant and stay compliant, from DOT to AI governance. Reach out at_ _team@efcompliance.com__._
_The E&F Compliance Team_