Serving Colorado's Counties
The Internal Revenue Service (IRS) has announced an increase in the Affordable Care Act (ACA) affordability threshold for 2027. The percentage will rise to 10.22%, up from 9.96% in 2026. This adjustment matters most for Applicable Large Employers (ALEs), including qualifying Colorado counties, that must offer affordable health coverage to full-time employees or risk ACA penalties.
Under the ACA's employer mandate, ALEs are generally employers with 50 or more full-time employees, including full-time equivalent employees. To avoid potential penalties, they must offer qualifying health coverage that meets minimum value and affordability requirements.
For 2027, an employee's required contribution toward the lowest-cost, self-only coverage that provides minimum value cannot exceed 10.22% of household income to meet the affordability standard. Because employers typically do not know an employee's household income, the IRS provides three affordability safe harbors:
These safe harbors help employers evaluate affordability using information available to them.
The higher affordability percentage gives ALEs more flexibility in setting employee health insurance contributions. Employers may be able to increase employee contributions while remaining ACA-compliant, provided their coverage meets all applicable requirements.
However, counties should carefully evaluate any adjustments to ensure coverage remains affordable for employees across different positions and pay levels.
Many ALEs use the Federal Poverty Line Safe Harbor to simplify affordability calculations. For 2027 calendar-year plans in Colorado, the maximum employee contribution for the lowest-cost, self-only coverage providing minimum value is $135.92 per month, compared with $129.89 in 2026. This gives employers modest flexibility while maintaining affordability protections for employees. Different calculations may apply to noncalendar-year plans.
Counties should begin reviewing their health coverage contribution structures before the 2027 plan year. Although the higher threshold offers additional flexibility, employers must ensure they continue to meet ACA requirements. Key considerations include:
The increase in the IRS affordability percentage to 10.22% for 2027 provides ALEs greater flexibility in managing employee health insurance contributions. Counties should review their contribution strategies, apply appropriate affordability safe harbors, and confirm compliance with ACA requirements to help avoid potential penalties. For counties that are members of the County Health Pool (CHP), CHP provides ACA reporting and guidance to help members navigate reporting requirements and maintain compliance. For additional information, contact CTSI at 303.861.0507.
Due to exposure for jail-related death claims, it is important to remember a few basic guidelines regarding jail intake and suicide prevention.
An essential component of effective risk management in jail intake and suicide prevention is ensuring all staff receive comprehensive training and ongoing education. Jail staff should be trained to recognize signs of mental distress, substance abuse, or suicidal behavior and understand the appropriate protocols to follow in such cases. Role-specific training should also include de-escalation techniques, proper restraint procedures, and the use of medically approved screening tools. Regular drills and scenario-based exercises can help reinforce these skills and ensure that staff are prepared to respond effectively in critical situations. Additionally, staying informed about evolving legal standards and best practices is vital for maintaining a safe and compliant facility.
Sheriff deputies should be vigilant in intake and suicide prevention for the inmates entrusted to their care. Policies and procedures must be developed, and staff must be trained in the implementation and use with strict enforcement. For more information on policies and training, please contact CTSI Loss Control at (303) 861-0507.
Drug and alcohol use becomes a workplace safety issue when it affects an employee’s ability to safely and effectively perform their job. For counties, the risks can be especially serious when employees operate vehicles or heavy equipment, work around traffic, interact with the public, or perform other safety-sensitive duties. Impairment can increase the risk of injuries, vehicle crashes, errors, and other incidents that may result in workers’ compensation or liability claims.
Marijuana continues to be the most commonly detected drug in workplace testing. According to the 2026 Quest Diagnostics Drug Testing Index, marijuana positivity in workplace hair testing increased nearly 59% over the past five years, reaching 15.1% in 2025. While a positive test does not indicate workplace impairment, the trend reinforces the need for clear policies and procedures to address potential impairment and safety concerns.
Supervisors should focus on what they can observe in the workplace rather than attempting to determine what substance an employee may have used. Behavior or performance changes may have many causes, so objective observation and documentation are important.
Potential signs that warrant closer attention may include:
One sign alone does not necessarily establish impairment. Supervisors should follow county policy, document specific observations, and avoid assumptions or conclusions that are not supported by what they observed.
Reasonable suspicion procedures are most effective when supervisors understand their responsibilities before a situation occurs. Training can help supervisors recognize potential indicators, document observations objectively, and know who to contact when there is a concern.
Counties should periodically review their drug and alcohol policies to ensure they clearly address prohibited conduct, reasonable suspicion procedures, testing requirements, documentation, and steps for removing an employee from safety-sensitive duties when appropriate. Policies should also distinguish between employees subject to federally mandated testing and employees who are not. Contact the Loss Control team to learn more about CTSI's Drug and Alcohol Recognition for Supervisors training.
Counties employing CDL drivers subject to federal drug and alcohol testing requirements have additional responsibilities. The Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse tracks CDL drivers with unresolved drug and alcohol program violations.
Employers must query the Clearinghouse before hiring covered drivers and at least annually for current drivers, and report certain violations. Drivers listed as “prohibited” in the Clearinghouse lose their commercial driving privileges and cannot regain them until completing the required return-to-duty process.
Drug and alcohol concerns require a consistent, safety-focused response. Counties should keep policies current, train supervisors to recognize and document potential impairment, and ensure they know when to involve county administration, human resources, risk management, or legal counsel. Because testing requirements vary by position and applicable laws, following clear procedures helps protect employees and the public while reducing workers’ compensation and liability exposure for the county and the Pools. For additional risk management resources, contact CTSI Loss Control at 303.861.0507.
With the increase in telecommuting and remote work since the pandemic, counties are receiving more requests from employees to work remotely outside Colorado. Remote work remains a significant part of today’s workplace, with 78% of U.S. employees in remote-capable jobs working either hybrid or exclusively remotely as of May 2026. While out-of-state work arrangements can help with employee recruitment and retention, employers should be mindful of their legal obligations under such arrangements.
Workers' Compensation Laws: Employers generally must comply with the workers' compensation laws of the state where their employees are physically working. While laws vary by state, most states require employers to register and obtain workers' compensation insurance in the state where the employee is working. The workers' compensation division in the applicable state can provide information on the state's specific requirements. CWCP's workers' compensation policy covers only employees working in Colorado, but we may be able to assist you in obtaining a policy endorsement for other states. Please reach out to CTSI if you have any questions about this.
Local Employment Laws: Remote workers may also be subject to the employment laws of the city and state where they are working. Laws that may apply to remote workers include those addressing overtime, rest breaks, minimum wage, job postings, and workplace discrimination.
Unemployment Insurance: Employers who have employees working out-of-state on more than a temporary basis may need to register and pay unemployment insurance premiums for the employee through the state unemployment insurance program where the employee is working.
Income Tax: Employers may also need to withhold state income tax in the state where the remote employee is working.
Counties should establish a process for reviewing out-of-state remote-work requests before an employee begins working from another state. Consider requiring employees to disclose where they will physically perform their work and receive approval before changing their work location. The review should involve appropriate human resources, payroll, legal, and risk management personnel to determine whether the county can meet applicable requirements.
A written remote-work agreement can also document the approved work location, the arrangement's duration, employee responsibilities, and expectations for notifying the county of any location change. Even a temporary move may warrant review, particularly when an employee will be working across state lines.
While allowing employees to perform remote work outside of Colorado may be an option for some counties, it is important to understand that doing so may implicate laws and obligations in the state where the employee is located. Failure to understand and comply with these obligations may expose the county to liability, including penalties for noncompliance with the state’s workers’ compensation, unemployment insurance and tax laws. For questions, contact CTSI at 303.861.0507.
Cybersecurity is not only about keeping hackers out of county systems. It is also about ensuring the right people have access to the right information and removing that access when it is no longer needed.
As county operations become increasingly digital, employees, contractors, and vendors may have access to email, shared drives, financial systems, personnel records, cloud applications, and other sensitive information. Over time, access can accumulate. An employee changes roles or offices but keeps permissions from a previous role. A seasonal employee finishes an assignment, but an account remains active. A vendor completes a project but retains system credentials.
IDENTITY IS A GROWING CYBERSECURITY PRIORITY
Identity and Access Management (IAM) refers to the policies and processes counties use to determine who can access systems, applications, and information—and what they can do once they are there.
Identity and access management is increasingly important as counties manage more users, accounts, and system permissions. Strong visibility into who has access to what can help identify unnecessary or excessive access before it creates a cybersecurity risk.
One important principle is least privilege: users should have only the system access they need to do their jobs. Cybersecurity & Infrastructure Security Agency (CISA) similarly recommends limiting account permissions to what an individual needs to do their job.
PAY ATTENTION TO ACCESS CHANGES
Review access throughout an employee or contractor's relationship with the county, not only when an account is initially created. Key times to review permissions include:
Counties should also periodically review active accounts to identify users who no longer need access, duplicate or shared accounts, and permissions that no longer match current job responsibilities.
ACCESS IS A SHARED RESPONSIBILITY
IT may manage county accounts and systems, but effective access management requires organization-wide communication. Supervisors, county administration, human resources, and other appropriate leadership often know first when someone is hired, changes positions, or leaves the organization. Establishing a consistent process for notifying IT of these changes can help ensure access is updated promptly. Counties should document who is responsible for requesting, approving, modifying, and removing access to avoid missing key steps.
WHAT THIS MEANS FOR COUNTIES
Strong passwords and multifactor authentication cannot protect accounts or permissions that should no longer be active. Regularly reviewing and limiting access can help protect sensitive information and reduce cybersecurity risks. Counties should coordinate across IT, county administration, human resources, and other appropriate leadership to establish clear procedures for granting, reviewing, and removing access. For additional risk management resources, contact CTSI at 303.861.0507.
Counties often extend the useful life of vehicles and equipment by adapting them for new purposes. This can be a practical, cost-effective way to meet operational needs, especially when budgets and resources are limited. However, when a vehicle is modified for a significantly different use, its weight, handling, and other operating characteristics may also change.
Taking a proactive approach to vehicle modifications can help prevent accidents and protect employees. Before placing modified equipment into service, counties should carefully evaluate whether the vehicle is safe and appropriate for its new intended use.
One example of a significant vehicle conversion is a truck originally designed to pull a load that is repurposed as a water tender by removing the fifth wheel and installing a large water tank. While this conversion may meet a new operational need, carrying a substantial liquid load can change vehicle performance and may require modifications to support its new load-carrying function.
Converting a vehicle in this way can affect its load, center of gravity, suspension, axles, braking, steering, tires, and overall handling. A vehicle originally designed to pull a load may perform differently when carrying a substantial liquid load. For this reason, evaluate significant modifications as a new vehicle configuration—not simply the original vehicle with new equipment added.
Before investing in a vehicle conversion, consider the condition and service history of the original equipment. A vehicle that is no longer suitable for its previous role may not automatically be a good candidate for a new one. Age, mileage, prior repairs, existing mechanical concerns, and expected service demands should all factor into the decision. Counties should consider whether modifying the vehicle is appropriate for its condition and whether the completed vehicle can safely and reliably perform the work expected of it.
Repurposing equipment can be appropriate, but counties should make sure the modified vehicle is suitable for the work it will perform. Before converted or specialized equipment is placed into service:
These controls can help identify potential problems before an employee is placed behind the wheel and provide documentation that the county has evaluated the equipment for its intended use.
Repurposing older equipment can help counties make the most of limited resources, but they should weigh cost savings against the risks created when a vehicle’s original function changes. A formal review of significant vehicle modifications, combined with equipment-specific maintenance, inspections, training, and operating procedures, can help protect employees and the public while reducing workers’ compensation and liability exposure for the county and the Pools. For assistance, contact CTSI at 303.861.0507.
Ms. Johnson worked for her employer for nearly three years before the harassment started. At that time, the work environment began to change when one employee started verbally harassing her and a co-worker. Another employee shared that the abuser did not approve of women in the workplace. About four months later, the employer was notified of the verbal harassment, which included making “oink, oink” and barking noises, inappropriate personal comments, and other sexual harassment.
The plaintiff informed both the office manager and plant manager yet heard nothing about the result of her complaint. She then expressed concern to her direct supervisor, Mr. Smith, who said the employee was told not to go near her. Within two weeks after Ms. Johnson’s complaint, the verbal harassment started again, continuing to worsen over a period of 18 months. It was only after another meeting and an escalated complaint to managers and the HR director that an investigation was launched.
As the investigation started, Ms. Johnson was off work for a death in the family. Upon her return, the harassment shifted to retaliation for her grievance, with other team members calling her a “liar” and making rude noises toward her. The plant manager told her she could avoid the staff break rooms and walk to another floor to use the restroom to avoid the harassment, but she said this was not viable. Ms. Johnson quit and filed suit.
The court found that the supervisor’s response to her further complaints was “negligible.” The court also discounted the attempts by the defendant’s attorney to make Ms. Johnson out as a liar, and under the stringent five-part test of proof that the plaintiff was required to meet, the court found the employer had constructive knowledge of the hostile conditions and failed to protect Ms. Johnson from an environment that forced her to quit.
While hopefully situations like this are rare, it is important to take proactive steps to limit the development of a hostile work environment and to respond quickly and responsibly to any such complaints.
A hostile work environment can be a challenging and stressful situation to deal with. It’s important to recognize the signs of a hostile atmosphere, which may include harassment, intimidation, aggression, or bullying from peers, supervisors, contractors, or customers. According to the United States Equal Employment Opportunity Commission (EEOC), workplace harassment is discriminatory behavior related to a unique identifier, such as race, religion, sexual identity, gender, age, or disability. For questions, contact CTSI at 303.861.0507.
If a county vehicle is involved in an accident and declared a total loss, understanding the process and available options under CAPP is essential. A vehicle is typically considered a total loss when the estimated repair cost exceeds 80% of its current market value.
If the county vehicle is declared a total loss, a CAPP adjuster will determine its actual cash value using industry-accepted research guides, mileage, condition, and comparable vehicle data. Once the value is established, CAPP will issue payment to the county, less the $1,500 deductible.
In some cases, CAPP may sell the vehicle for salvage, with the proceeds reimbursing the pool and reducing the overall cost of the county’s claim. If CAPP does not retain the vehicle, the county may choose to:
Prompt communication is key. Counties should notify their CAPP adjuster of their decision as soon as possible so the claim can move forward, and unnecessary delays or costs can be avoided.
If a total loss vehicle is stored in a yard, it is the county’s responsibility to arrange removal to avoid ongoing storage fees charged against CAPP. Once a vehicle is designated for salvage, CAPP will work with the county and the salvage company to arrange removal. Because CAPP does not obtain the vehicle title, the county will need to work directly with the salvage company to complete the salvage process. Maintaining close communication with the claims adjuster helps clarify responsibilities, prevent unnecessary costs, and keep the process moving smoothly.
If a county chooses to repair a total loss vehicle, specific steps must be followed before it can be placed back into service. The vehicle must be restored to safe driving condition, inspected by the Department of Motor Vehicles, and issued a salvage title.
Vehicles with salvage titles are legal to operate in Colorado and may be insured. However, coverage is limited to liability only. Collision and comprehensive coverage are no longer available, as CAPP has already paid the market value of the vehicle.
If the repaired vehicle is later involved in another accident, liability coverage for third parties will still apply under the CAPP policy. However, any damage to the salvage-titled county vehicle itself will not be covered. This limitation is important to consider when weighing whether to keep, sell, or repair a total loss vehicle.
When a county vehicle is deemed a total loss, factors such as reimbursement amount, salvage and storage responsibilities, repair costs, and the limits of liability-only coverage on salvage-titled vehicles should all be considered. Reviewing these points with a CAPP claims adjuster can help determine the most appropriate course of action for the county. For assistance, please contact CTSI at 303.861.0507.
